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