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Banks told to refund customers after CMA action

The CMA has taken action against HSBC and Santander after they broke an Order requiring them to send customers text alerts before banks charge them for going into an unarranged overdraft, giving them time to take action to avoid any charges. 

HSBC was found to have twice broken the Order and is refunding £8m to 115,000 customers. Santander broke the Order 6 times and has agreed to issue a refund but has yet to confirm the number of customers affected and how much it will refund.

The breaches first occurred in February 2018, when the Order came into force.

The CMA is also directing HSBC and Santander to undertake an independent check of their compliance with the Order between February 2018 and December 2019.

Rachael Preston

Rachael Preston