Are your bank keeping you informed?

According to the competition and Markets Authority, certain UK banks are not meeting their obligations to keep customers informed about their products and services.

HSBC, Lloyds, TSB and AIB all failed to make available correct data on their products or services and have breached the Order in the following ways:

• 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.
• TSB failed to disclose the maximum amount customers would be charged for going into unarranged overdraft on their Personal Current Accounts.
• AIB failed to make available the correct annual rates for some loans and some overdrafts through Open Banking and on its own website.
• Lloyds failed to make available addresses of 363 ATMs through Open Banking.

Compliance with the Order is closely monitored by the CMA and banks are obliged to report all incidences of non-compliance within 14 days.

Lloyds, TSB and AIB have confirmed they are making changes to their operations to prevent further breaches – ranging from enhancing their internal procedures, to improving oversight by senior managers, updating internal checklists and retraining staff.

In the case of HSBC – which the CMA considers has breached the Order more extensively in this instance – added measures are needed to prevent future breaches. To start the process, the CMA has issued HSBC with detailed directions which include an action plan to ensure full compliance in future.