Competition watchdog slams four banks over sharing of incorrect data

HSBC, Lloyds, TSB and Allied Irish Bank (AIB) have been named by the Competition and Markets Authority (CMA) as failing to comply with the Retail Banking Market Investigation Order 2017.

All four banking giants were found to have breached the order by failing to give correct data on their products or services. The order enforces that banks provide correct information on interest rates for loans and accurately display the right locations for bank branches and ATMs.

‘Open Banking’ also forms part of the order, which sets standards for transparent and secure data sharing for retail banking services in the UK.

HSBC was the biggest culprit after information about its branches was found to be inaccurate – 167 closed branches were listed as still being open and two open branches were not listed.

It also has come under fire for failing to keep some of its annual rates for business loans and overdrafts accurate and up to date on its website and telling some customers the incorrect maximum amount they would be charged for going into unarranged overdraft on their personal current accounts.

TSB failed to disclose the maximum amount customers would be charged for going into unarranged overdraft on their personal current accounts.

AIB failed to make available the correct annual rates for some loans and some overdrafts through Open Banking and on its own website.

And Lloyds failed to make available the addresses of 363 ATMs through Open Banking.

The CMA closely monitors compliance and banks are obliged to report all incidences of non-compliance within 14 days.

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.

In the case of HSBC – which the CMA considers has breached the order more extensively in this instance – added measures are needed to prevent future breaches. To start the process, the CMA says it has issued HSBC with detailed directions which include an action plan to ensure full compliance in future.

Dan Turnbull, senior director at the CMA, commented: “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 7 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.”