Competition Watchdog Issues Warning to 4 Banks for Providing Inaccurate Information
HSBC, Lloyds, TSB, and AIB have violated competition rules by providing inaccurate or outdated information, as stated by the CMA.
The CMA has criticized four major high street banks for failing to provide correct details regarding loan interest rates, charges, branch locations, or ATM availability.
Following the Retail Banking Market Investigation Order 2017, the CMA has addressed these breaches with HSBC, Lloyds, TSB, and AIB.
While the CMA will continue to monitor the banks, formal enforcement actions are not expected as the banks have taken corrective measures to rectify the issues.
Special attention was directed towards HSBC, which was found to have violated the order to a greater extent, prompting additional directions from the CMA to ensure compliance.
Dan Turnbull, senior director at the CMA, expressed disappointment that major banks are still non-compliant with regulations seven years after implementation.
HSBC specifically failed to keep branch information accurate and up-to-date for over a year, leading to discrepancies in branch status listings, among other errors highlighted by the CMA.
Additionally, HSBC was found to have inaccuracies in its loan interest rates and charges due to human errors and contractor mistakes.
The CMA pointed out the need for external reviews of HSBC’s processes, recommendations implementation, staff training, and reminders to ensure future compliance.
Lloyds, AIB, and TSB were also reprimanded for breaches related to incorrect information and delays in reporting issues as per the rules outlined by the CMA.
While formal enforcement actions are not planned at this time, the CMA will closely monitor the banks to ensure ongoing compliance.
An HSBC UK representative expressed regret for the errors and assured steps have been taken to prevent similar issues in the future.
PA Media contributed to this report.
