HSBC and Santander to refund customers following CMA action

Financial Services | Latest News | Legal
HSBC

HSBC and Santander have agreed, following a Competition and Market Authority action, to refund customers after they both broke a legal order.

HSBC was found to have twice broken Part Six of the CMA Retail Banking Market Investigation Order and is to refund £8m to 115,000 customers.

Santander broke the Order six times and has agreed to issue a refund but has yet to confirm the number of customers affected and how much it will refund.

Part Six of the Order ensures customers receive text alerts before banks charge them for going into an unarranged overdraft, giving them time to take action to avoid any charges. Both banks failed to send alerts in all of the circumstances required by the CMA.

The breaches first occurred in February 2018, when Part Six of the Order came into force.

The refunds paid by the banks cover all fees incurred by customers from going into unarranged overdrafts where they had not been warned beforehand by the required text alerts.

The CMA is also directing HSBC and Santander to undertake an independent check of their compliance with Part Six between February 2018 and December 2019.

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