Banks and buildings societies are required to send customers a history of their current account banking activity (a “transaction history”) within 40 days of a customer or small business closing their current account. Transaction histories must be sent to at least 95% of these customers within 10 working days. The CMA introduced this requirement to make current account switching easier.
The CMA has now issued a warning to Monzo for breaching this requirement by failing to send transaction histories to over 143,000 former account holders. The CMA has also written to Bank of Ireland, NatWest Group and Virgin Money for breaching the rule in a similar way.
The banks involved are sending all outstanding information to the affected customers but the CMA has warned that, if they breach this requirement again, it can take further action by issuing ‘Directions’ which are legally binding.