CMA orders multi-million pound refund for HSBC and Santander customers

The Competition and Market Authority (CMA) has ordered banking giants HSBC and Santander to give millions of pounds in refunds to its customers.

Both banks were found to have broken Part 6 of the Competition and Market Authority’s (CMA) Retail Banking Market Investigation Order.

HSBC had twice broken the order and is set to refund £8m to 115,000 customers, while Santander broke the order six times and has not yet disclosed the refund amount or number of customers affected.

The refunds are related to fees for unarranged overdrafts incurred by customers when Part 6 of the order came into force in February 2018 - specifically where customers had not been warned beforehand by required text alerts.

As part of the ruling, the CMA is also directing HSBC and Santander to undertake independent checks of their compliance with Part 6 between February 2018 and December 2019.

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