Royal Bank of Scotland will refund more than £2 million (US$2.47 million) to 36,000 customers for failing to warn them about overdraft charges.
The payment takes the total bill to £47 million (US$57.98 million) for high street lenders for breaching a 2018 order by the Competition and Markets Authority requiring them to alert customers via text messages if they are about to go into the red and incur charges.
The competition regulator introduced the measure to improve choice and service for retail and business banking customers after finding deficiencies in both markets after an investigation in 2016.
A view that overdraft users suffered from insufficient competition led to a range of measures to help people to avoid big fees, including sending warning messages.
Andrea Coscelli, Chief Executive of the CMA, said “Text alerts have been absolutely key in helping people to avoid unfair unarranged overdraft charges and, where banks have failed to comply, the CMA has worked to secure millions in refunds for customers.”
Full Content: Gov UK
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