No products in the cart.
- Latest
- Trending
ADVERTISEMENT
The Competition and Markets Authority (CMA) in the United Kingdom has instructed digital bank Monzo Bank Limited to review a mechanism for notifying departing customers of financial transaction history.
The new direction follows Monzo’s failure to notify 13,000 customers of its financial transaction history after leaving its account between May 2021 and March 2022.
The order is legally binding, CMA said In the statement Released on Tuesday.
Competition regulators pointed out that Monzo’s actions were a breach of the UK retail banking market research order.
The government sector also revealed that Monzo, which reached a value of $ 4.5 billion last year, violated the same provision in 2021.
according to Open letter CMA sent a letter to Monzo last year, and the 2021 online banking breach affected 143,437 ex-customers.
The breach lasted from March 1, 2020 to May 31, 2021.
“As a result, the CMA issued legally binding instructions, requiring Monzo to confirm that this would never happen again and to review the independent body and its procedures,” CMA said.
“If Monzo does not follow the instructions, the instructions can be enforced in court,” the regulator added.
In his comment, Adam Land, senior director of CMA, states that financial transaction history can help clients secure loans and mortgages.
Therefore, Monzo’s failure to provide history to its customers “has created unnecessary obstacles that get in the way of thousands of customers,” he said.
“It’s not enough for a big bank like Monzo to repeatedly fail its customers by not following clear rules,” Land added.
However, the CMA said it was informed of the “initial changes” that Monzo made to comply with the rules.
One of these measures is that the online bank has introduced a new automatic alert that alerts staff when the system defaults to sending financial transaction history.
Monzo also said he is taking care to ensure that customers who close their accounts have access to their transaction history.
In addition, British banks are developing new measures to ensure compliance with orders, CMA said.
According to CMA, Article 20.6.2 of Part 5 of the 2017 Retail Banking Market Research Order sends all transaction history within 40 days of the closure of a personal checking account (PCA) or business checking account (BCA). is needed.
In addition, Article 20.6.1 of the order requires that at least 95% of the financial transaction history be made available to customers within 10 business days after the account is closed.
The CMA further explains: “The requirement for checking account providers to provide transaction history data to customers who have closed their accounts is a key element of the reforms introduced below. Market research..
“This measure, in combination with other parts of our reform, was designed to allow consumers to easily switch PCAs.”
The Competition and Markets Authority (CMA) in the United Kingdom has instructed digital bank Monzo Bank Limited to review a mechanism for notifying departing customers of financial transaction history.
The new direction follows Monzo’s failure to notify 13,000 customers of its financial transaction history after it closed its account between May 2021 and March 2022.
The order is legally binding, CMA said In the statement Released on Tuesday.
Competition regulators pointed out that Monzo’s actions were a breach of the UK retail banking market research order.
The government sector also revealed that Monzo, which reached a value of $ 4.5 billion last year, violated the same provision in 2021.
according to Open letter CMA sent a letter to Monzo last year, and the 2021 online banking breach affected 143,437 ex-customers.
The breach lasted from March 1, 2020 to May 31, 2021.
“As a result, the CMA issued legally binding instructions, requiring Monzo to confirm that this would never happen again and to review the independent body and its procedures,” CMA said.
“If Monzo does not follow the instructions, the instructions can be enforced in court,” the regulator added.
In his comment, Adam Land, senior director of CMA, states that financial transaction history can help clients secure loans and mortgages.
Therefore, Monzo’s failure to provide history to its customers “has created unnecessary obstacles that get in the way of thousands of customers,” he said.
“It’s not enough for a big bank like Monzo to repeatedly fail its customers by not following clear rules,” Land added.
However, the CMA said it was informed of the “initial changes” that Monzo made to comply with the rules.
One of these measures is that the online bank has introduced a new automatic alert that alerts staff when the system defaults to sending financial transaction history.
Monzo also said he is taking care to ensure that customers who close their accounts have access to their transaction history.
In addition, British banks are developing new measures to ensure compliance with orders, CMA said.
According to CMA, Article 20.6.2 of Part 5 of the 2017 Retail Banking Market Research Order sends all transaction history within 40 days of the closure of a personal checking account (PCA) or business checking account (BCA). is needed.
In addition, Article 20.6.1 of the order requires that at least 95% of the financial transaction history be made available to customers within 10 business days after the account is closed.
The CMA further explains: “The requirement for checking account providers to provide transaction history data to customers who have closed their accounts is a key element of the reforms introduced below. Market research..
“This measure, in combination with other parts of our reform, was designed to allow consumers to easily switch PCAs.”
