Banks have an obligation (under Part 6 of the Retail Banking Market Investigation Order 2017) to send text warnings to customers warning of fees that will be incurred before they charge them for an unarranged overdraft. RBS failed to do this from February 2018 until December 2019, and after an investigation by The Competition and Markets Authority (CMA) has now agreed to fully repay the charges – as well as providing an additional 8% in interest – bringing the total it will refund to customers to £2.2 million.
The CMA has now taken action against five of the UK’s biggest banks and building societies for breaching Part 6 of the Retail Banking Market Investigation Order 2017 and therefore failing to send text alerts. Receiving this alert is designed to give people time to take action and avoid any unexpected charges.
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