By Aisling Finn on Tuesday 21 April 2020
The high street bank reported that messages did not contain all the information needed and some customers didn’t receive them by the required time.
The Competition and Markets Authority (CMA) has ordered Metro Bank to repay £11.4m to customers it overcharged as a result of failing to notify them they had fallen into an unarranged overdraft and not providing adequate information to those affected.
Metro Bank breached the Retail Banking Market Investigation Order 2017, twice, by failing to inform customers by 10am of extra charges and also by incorrectly wording SMS alerts.
Following the mistakes in December 2019, nearly 130,000 customers were affected by the breach.
David Thomasson, chief commercial officer at Metro Bank, said: “We are very sorry that we didn’t include all the information we should have done on our overdraft text alerts, and that on certain occasions some customers did not receive these alerts before 10 am as they should have done.”
“This isn't the level of service that we pride ourselves on providing and we are now contacting any customers who have been impacted to put things right for them as quickly as possible,” he added.
In the CMA’s letter, Colin Garland, director of Remedies, Business and Financial Analysis, wrote: “We welcome that Metro Bank has committed to put things right. The offer of remediation, around £11.4m, to people who were unfairly charged is welcomed by the CMA.”
Metro Bank hopes to refund customers by Summer 2020, as well as offering 8 per cent interest as compensation.