Monzo and NatWest among those warned over statements failure

(Alliance News) - UK app-based challenger bank Monzo has been issued with a formal warning after ...

Alliance News 22 June, 2021 | 11:18AM
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(Alliance News) - UK app-based challenger bank Monzo has been issued with a formal warning after breaching banking rules by not providing bank statements to 143,000 former customers.

The UK Competition & Markets Authority has also written to Bank of Ireland Group PLC, NatWest Group PLC and Virgin Money UK PLC reminding them of banking rules which state that any customer or small business closing an account must have a full transactions history provided within 40 days of leaving.

Investigators told the financial institutions that transaction histories must be sent to at least 95% of such customers within 10 working days and future breaches could lead to legally binding extra training or additional oversight by the watchdog.

The rules were introduced in 2017 as part of a push to make switching current accounts easier, while ensuring that customers can still access banking history – a key requirement for credit lenders.

In total, nearly 150,000 customers were not provided with their transaction history – the vast majority with Monzo – with some delayed by a few weeks and others by more than a year, the CMA said.

Adam Land, CMA senior director of remedies, business and financial analysis, said: "This may have made things harder for people trying to borrow money or apply for a mortgage.

"The CMA's work in the sector is making it easier for people to get a better deal from their bank. Banks must comply with all the rules – that includes providing a full transaction history promptly.

"We will be watching closely to make sure these leading names stick to their word and don't let their customers down again."

"Bank of Ireland, Monzo, NatWest Group, and Virgin Money should be in no doubt that the CMA stands ready to take further action if these failures are repeated."

By Simon Neville, PA City Editor

source: PA

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Virgin Money UK PLC 214.40 GBX -0.09
NatWest Group PLC 285.80 GBX 2.18
Bank of Ireland Group PLC 10.19 EUR 0.30 -
Bank of Ireland Group PLC 10.27 EUR 1.99 -

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