By John Reynolds on Tuesday 1 February 2022
The CMA has written to the challenger bank saying it breached banking rules between 25 October 2018 and 19 November 2021 but says it has taken adequate steps to prevent a repeat of the breach.
Monzo has been reprimanded by the Competition & Markets Authority (CMA) for failing to disclose the maximum charges a current account holder can be hit with if they exceed their credit limit.
The competition regulator has written to the challenger bank over the breach and said it “will monitor Monzo Bank’s future compliance closely”.
Existing rules mean that banks must specify the maximum charges that could accrue concerning a Personal Current Account (PCA) in any given month, if the account exceeds or tries to exceed the agreed credit limit.
The limit is known as the Monthly Maximum Charge (MMC).
The letter says: “The CMA is concerned that Monzo Bank’s PCA customers may not have seen the MMC, since it was not displayed each time information on Monzo Bank’s fees and charges for exceeding a pre-agreed credit limit was disclosed.”
But the CMA noted that Monzo “has taken steps to end the breach and prevent a recurrence”.
“Given the action already being taken by Monzo Bank, the CMA does not consider it appropriate to take further formal enforcement action in relation to this breach at present. The CMA will monitor Monzo Bank’s future compliance closely,” the CMA added.
The full letter has been published on the government website.