The CMA has announced that it will conduct a review of Part 6 of the Retail Banking Market Investigation Order 2017 (the Order).
The Order, which came into force in February 2018, requires qualifying banks to automatically enrol their customers into an unarranged overdraft alert; and to offer, and alert customers to the opportunity to benefit from, grace periods during which they can take action to avoid or reduce all charges resulting from unarranged overdraft use.
Subsequently, the FCA announced rules on overdraft alerts, which enter into force on 18 December 2019. Furthermore, on 7 June 2019 the FCA announced to the way banks charge for overdrafts.
The CMA is, reviewing whether from 18 December 2019, Part 6 of the Order would have been superseded and should therefore be revoked. It is also considering whether associated provisions, such as those relating to compliance reporting for Part 6 only, should also be revoked.
The deadline for comments is 22 July 2019.