The CMA has written to Metro Bank’s CEO after the bank broke an Order requiring it to send customers text alerts before charging them for going into an unarranged overdraft, giving them time to act and avoid any charges.
The CMA’s investigation found that Metro Bank failed to inform 128,564 customers that they would be charged for entering an unarranged overdraft. This breach has been continuing since February 2018, when the Order was introduced.
Metro Bank is refunding £10.5 million in fees and has offered to pay back 8% interest on the charges, bringing the expected total remediation to around £11.4 million. It will also consider reasonable claims for extra costs incurred by affected customers.
The bank aims to refund affected customers by Summer 2020 and has agreed to keep both the CMA and the FCA informed of its progress and provide confirmation when this is complete.