Correspondence

CMA letter to Danske Bank on a second breach of the SME Banking Undertakings

Letter to Danske Bank for a breach of the Small and medium sized enterprises (SME) Banking Undertakings 2002.

• From: Competition and Markets Authority
• Published: 12 November 2021

Documents

CMA letter to Danske Bank on its second breach of the SME Banking Undertakings 2002

PDF, 128 KB, 4 pages

Danske Bank's action plan

PDF, 107 KB, 2 pages

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Details

Danske Bank (a trading name of Northern Bank Limited) breached the Small and Medium-sized Enterprises Banking Undertakings. Danske Bank required up to 205 SMEs to open a Business Current Account (BCA) in order to progress their application for a loan under the Bounce Back Loan Scheme (the Scheme). Danske Bank started offering the loans under the Scheme on 4 May 2020.

Danske Bank previously breached the Undertakings. The CMA published its letter to Danske Bank on 30 March 2021.

The Action Plan on this page sets out information on Danske Bank’s actions to address its breach.

• Danske Bank wrote to affected customers and offered refunds of business current account charges and the option to switch to a fee-free loan servicing account
• To ensure future compliance, Danske has committed to take actions including implementing an enhanced staff training programme, appointing an independent body to conduct compliance audits and writing to its SME customers to increase awareness of the rules against bundling

Published 12 November 2021