Correspondence
CMA letter to TSB about breaching Part 7 and Article 56 of the Retail Banking Order
CMA finds breaches of Part 7 and Article 56 of the Retail Banking Market Investigation Order 2017 and TSB has agreed to take action to prevent a recurrence.
Documents
Details
Part 7 of the Order requires all providers of personal current accounts (PCAs) in the UK to set a Monthly Maximum Charge (MMC) in relation to unarranged overdraft charges. TSB breached Part 7 by:
- failing to disclose the level of the MMC next to the relevant charges in Spend and Save Plus customers’ monthly statements
- failing to disclose the level of the MMC within its mobile app journey for new to bank customers when mentioning overdraft charges
Article 56 of the Order states that if a bank is aware that it is not compliant with any part of the Order, it must report this non-compliance to the CMA within 14 days. TSB became aware of the breach related to the Spend and Save Plus customers’ monthly statements on 1 August 2023. However, it only reported this to the CMA on 1 September 2023.