The Competition and Markets Authority (CMA) has publicly criticised four banks, including HSBC, Lloyds, TSB and Allied Irish Bank (AIB), for not adhering to rules that require lenders to provide clear and current information to their customers.
The CMA stated that all four banks “failed to make available correct data on their products or services”.
HSBC was particularly called out by the CMA for violating these measures more extensively than the other banks. The regulator revealed that HSBC had given some customers incorrect information about the maximum amount they would be charged for entering an unarranged overdraft.
Furthermore, the bank did not maintain accurate and timely information regarding which of its branches were still operational and failed to keep some of its annual rates for business loans and overdrafts updated on its website, as reported by City AM
The CMA has issued “detailed directions” to HSBC, including a plan to ensure full compliance in the future. “It’s disappointing that seven years on, we have to put in place formal enforcement measures to secure better compliance from a major bank like HSBC which, yet again, is in breach of the rules,” said Dan Turnbull, senior director at the CMA.
However, the regulator acknowledged that the breaches were self-reported by HSBC and that the bank had taken “proactive steps” to address the concerns. While the CMA stated it would not take “further formal enforcement action” against HSBC, it will continue to closely monitor the bank’s “future compliance closely”.
A spokesperson for HSBC UK expressed regret: “We are sorry for errors on our part which caused these breaches. When we discovered them we reported these to the regulator. We have taken steps to avoid a repeat of these issues in the future.”
The CMA disclosed that TSB was at fault for not revealing the maximum fees customers could incur from unauthorised overdrafts. Concurrently, AIB was held accountable for incorrectly publishing annual rates for some of its loans and overdrafts through Open Banking on its online platform.
On another note, Lloyds was found guilty of failing to provide the locations of 363 ATM facilities through Open Banking.
Assuring improvements, Lloyds, TSB and AIB have all verified that they are modifying their operations to forestall any further transgressions.
Turnbull emphasised the importance of trust and accuracy in banking sector: “People deserve banks they can trust to serve them well. Having correct information is essential when making important decisions about our finances. Banks handling our hard-earned money should have adequate processes in place to ensure this happens,”.
Regarding the issue, a representative from Lloyds affirmed that they had “notified” the CMA, while also clarifying that there was “no evidence of detriment to customers at any point”.
TSB chose not to respond, whereas attempts were made to reach AIB for a comment.
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