Four major high street banks—HSBC, Lloyds, TSB, Allied Irish Bank (AIB)—have failed to comply with banking rules to help customers that were set by the CMA, the UK’s Competition and Markets Authority.

Under its Retail Banking Market Investigation Order 2017, banks and building societies are required to follow strict rules when it comes to informing customers about their products and services. This includes showing correct interest rates for loans and accurately displaying the right locations for bank branches and ATMs.

Open Banking—the initiative which sets high standards for retail banking services in the UK—was also put in place by the Order. It enables a wide range of data on products and services to be used by third parties to create technological innovations and improve services.

However, the four aforementioned banks have all failed to make available correct data on their products or services, it’s been confirmed by the CMA today (25 July).

They’ve breached the Order in the following ways:

• Lloyds failed to make available addresses of 363 ATMs through Open Banking.
• AIB failed to make available the correct annual rates for some loans and some overdrafts through Open Banking and on its own website.
• TSB failed to disclose the maximum amount customers would be charged for going into unarranged overdraft on their Personal Current Accounts.
• HSBC failed to keep information about its branches accurate and up to date – 167 closed branches were listed as still being open and two open branches were not listed.
• HSBC failed to keep some of its annual rates for business loans and overdrafts accurate and up to date on its website.
• HSBC told some customers the incorrect maximum amount they would be charged for going into unarranged overdraft on their Personal Current Accounts.

Lloyds, TSB, and AIB have confirmed they’re making changes to their operations to prevent further breaches. This includes enhancing internal procedures, updating internal checklists, and retraining staff, among other measures.

The CMA has said that it considers HSBC to have breached the Order more extensively in this instance, and has issued the bank with detailed directions which includes an action plan to ensure compliance in the future.

Speaking on the breaches, Dan Turnbull, senior director at the CMA, commented: “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.

“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.

“The CMA will continue to closely monitor all banks’ compliance to ensure customers can clearly and confidently manage their finances.”

Recommended reading

• FCA to Protect Access to Cash Amid Bank Branch Closures
• FinTech Scotland Festival Reveals 2024 Programme
• Early-stage Financial Distress Continues to Climb in Scotland

The Retail Banking Marketing Investigation Order 2017 was originally put in place after the CMA found competition concerns in the UK’s retail banking market.

Since it’s been in force, the CMA has written publicly to banks 35 times and issued 5 sets of legally-binding directions to help banking consumers receive correct and accurate information.

To date, customers have received more than £47m in refunds.