Metro bank customers receive £10. 5m overdraft fee refund

Press release METRO BANK CUSTOMERS RECEIVE £10.5M OVERDRAFT FEE REFUND Metro Bank has committed to repay more than £10.5 million after it breached a legal order by failing to send texts

warning people about unarranged overdraft charges. The bank was found to have breached Part 6 of the Competition and Market Authority’s (CMA) Retail Banking Market Investigation Order 2017.

This requires banks to ensure that customers with personal current accounts receive a text alert warning about charges before banks charge them for unarranged overdrafts, so they have time

to act and can avoid unexpected fees. The CMA’s investigation found that Metro Bank failed to inform nearly 130,000 customers that they would be charged for entering an unarranged overdraft.

Although text alerts were sent, these did not inform customers that they would be charged. This breach has been continuing since February 2018, when the Order was introduced. Additionally,

some of these alerts were sent later than they should have been. As well as refunding £10.5 million in fees, Metro Bank has offered to pay back 8% interest on the charges bringing the

expected total remuneration to around £11.4 million. It will also consider reasonable claims for extra costs incurred by affected customers. Adam Land, CMA Senior Director for Remedies,

Business and Financial Analysis, said: > The text alerts we ordered banks to send to customers have been > crucial in helping people avoid unexpected fees from entering an > 

unarranged overdraft. >  > While it is disappointing to see so many customers being charged > wrongly, Metro Bank’s commitment to refund those affected – and > to cover interest 

charges and consider claims for extra costs > suffered – will put this right. Read the CMA letter to Metro Bank. NOTES TO EDITORS * Part 6 of the Retail Banking Market Investigation Order

came into force in 2018, after the CMA’s retail banking market investigation identified a number of competition problems in both the personal current account (PCA) and small and

medium-sized enterprise (SME) banking markets. The Order is part of a package of remedies designed to address these problems. * The responsibility for enforcing the sending of text alerts

was transferred to the Financial Conduct Authority in December 2019.  * The total number of Metro Bank customers affected was 128,564. * For press queries, email [email protected] or call 020

3738 6460 SHARE THIS PAGE The following links open in a new tab * Share on Facebook (opens in new tab) * Share on Twitter (opens in new tab) UPDATES TO THIS PAGE Published 20 April 2020