CMA takes action against HSBC for breaching Parts 7 and 8 of the Retail Banking Order
Competition and Markets Authority (CMA) finds breaches of the Retail Banking Market Investigation Order 2017 and HSBC has agreed to take action to put things right for customers
Documents
Details
Part 7 of the Retail Banking 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. Providers must say what their MMC is each time they mention unarranged overdraft charges in product literature. HSBC did not mention the MMC every time it mentioned unarranged overdraft charges in a number of places, including some homepages and statement of fees documents.
Part 8 requires providers of business overdrafts to small and medium-sized businesses to publish a Representative Rate for those products. Rates published must be displayed prominently and kept accurate and up to date. HSBC breached Part 8 of the Order when one of the pages of its public website displayed out of date information about the Representative Rate for its Unsecured Business Overdrafts.
HSBC has taken steps to end each breach and to prevent a recurrence.