HSBC, Lloyds, TSB and Allied Irish Bank (AIB) all failed to make available correct data on their products or services as required under the Retail Banking Investigation Order 2017, the Competition and Markets Authority (CMA) revealed.
As part of the order, banks and building societies are required to follow strict rules when informing customers about their products and services, including displaying correct interest rates for loans and giving the right locations for bank branches and ATMs.
However, the CMA found that HSBC listed 167 closed branches as still being open and two open branches were not listed. It also failed to keep some of its annual rates for business loans and overdrafts accurate and up to date on its website.
Meanwhile, it also told some customers the incorrect maximum amount they would be charged for going into an unarranged overdraft on their personal current accounts.
And this was also the case for TSB. Turning to AIB, the CMA said it failed to make available the correct annual rates for some loans and some overdrafts through open banking and on its own website.
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Under the order, open banking is also included, which requires transparent and secure data sharing for retail banking services, which is used by third parties.
The CMA also revealed that Lloyds failed to make available addresses of 363 ATMs through open banking.
Lloyds, TSB and AIB have confirmed they are making changes to their operations to prevent further breaches – ranging from enhancing their internal procedures to improving oversight by senior managers, updating internal checklists and retraining staff.
But the CMA said in the case of HSBC, which “breached the order more extensively”, it will need to take additional measures to prevent future breaches. To start the process, the CMA has issued HSBC with detailed directions that include an action plan to ensure full compliance in future.
‘Having correct information is essential’
Dan Turnbull, senior director at the CMA, said: “People deserve banks they can trust to serve them well. Having correct information is essential when making important decisions about our finances. Banks handling our hard-earned money should have adequate processes in place to ensure this happens.
“It’s disappointing that, seven years on, we have to put in place formal enforcement measures to secure better compliance from a major bank like HSBC, which, yet again, is in breach of the rules.
“The CMA will continue to closely monitor all banks’ compliance to ensure customers can clearly and confidently manage their finances.”
An HSBC UK spokesperson said: “We are sorry for errors on our part [that] caused these breaches.
“When we discovered them, we reported these to the regulator. We have taken steps to avoid a repeat of these issues in the future.”
