Guidance

Directions issued to the Co-operative Bank

Directions issued by the CMA to the Co-operative Bank to ensure compliance with Part 7 of the Retail Banking Market Investigation Order 2017.

Documents

Directions

Details

The Retail Banking Market Investigation Order 2017 (the Order) followed the Competition and Markets Authority’s (CMA’s) market investigation into retail banking. It requires, from 2 August 2017, that providers of personal current accounts must specify a ‘monthly maximum charge’ (MMC) that any customer could be charged for using (or attempting to use) their unarranged overdraft.

The Co-operative Bank applies a quarterly maximum charge. This is similar to an MMC but is calculated differently and does not comply with Part 7 of the Order. These directions ensure that the Co-operative Bank complies with Part 7 of the Order by 5 January 2018 and compensates any of its customers who have been negatively impacted by its failure to do so earlier.

Update

27 March 2018: The CMA today revoked the Directions given to the Co-operative Bank on 2 August 2017 on confirmation by the Bank that it had met the requirements of the Directions.

Updates to this page

Published 14 August 2017
Last updated 27 March 2018 + show all updates
  1. CMA revoked the Directions given to the Co-operative Bank on 2 August 2017

  2. First published.

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