Banks have issued a warning after 150,000 former account users were not sent transaction histories.
The Competition and Markets Authority (CMA) has issued a warning to several of the country’s largest banks for failing to send transaction histories to over 150,000 former account holders.
The regulator said that the banks’ individual failings “may have made things more difficult” for people seeking a mortgage or a loan.
Monzo, Bank of Ireland, NatWest Group, and Virgin Money are among the financial companies that have been reprimanded.
Because almost 143,000 former clients did not receive bank statements, Monzo was the worst offender.
The CMA, on the other hand, confirmed that Bank of Ireland failed to issue statements to 1,066 former customers.
The same was done to 903 and 220 former account customers, respectively, by NatWest and Virgin Money.
Following the Retail Banking Market Investigation Order of 2017, building societies and banks are required to send consumers a history of their current account banking activity within a 40-day period of cancelling their current account.
Following the regulator’s retail banking market examination, which uncovered a number of competition issues in both the PCA and small and medium-sized enterprise (SME) banking markets, the order went into effect in 2018.
Bank statements must typically be given to at least 95% of former account holders within 10 business days.
This policy was put in place by the CMA to make it easier for individuals to switch banks.
Furthermore, the action allays consumers’ fears that if they move accounts, they will lose access to their financial history, which is necessary for obtaining credit.
Some transaction records were delivered a few weeks late by the four banks, while others were delayed by more than a year.
Following the CMA’s warning, each of the banking institutions has been written to, and they are now sending all outstanding information to the impacted clients.
If any of the institutions fails to comply with the order, the regulator has the authority to take additional action by issuing legally enforceable “directions.”
Banks may be required to implement particular employee training or complete annual compliance audits to avoid this from happening again, ensuring that their customers are not impacted.
The CMA does not currently impose financial penalties on corporations, but it has asked the government for the authority to do so.
The impact of this major banking blunder, according to Adam Land, Senior Director of Remedies Business and Financial Analysis at the CMA. “Brinkwire News in Condensed Form.”