Part 7 of the Order requires all providers of personal current accounts (PCAs) in the UK to set a Monthly Maximum Charge (MMC) in relation to unarranged overdraft charges. TSB breached Part 7 by: 


  failing to disclose the level of the MMC next to the relevant charges in Spend and Save Plus customers’ monthly statements
  failing to disclose the level of the MMC within its mobile app journey for new to bank customers when mentioning overdraft charges




Article 56 of the Order states that if a bank is aware that it is not compliant with any part of the Order, it must report this non-compliance to the CMA within 14 days. TSB became aware of the breach related to the Spend and Save Plus customers’ monthly statements on 1 August 2023. However, it only reported this to the CMA on 1 September 2023.

CMA Raises Concerns Over TSB's Breach of Retail Banking Order

The Competition and Markets Authority (CMA) has notified TSB of its failure to adhere to Part 7 of the Retail Banking Order, which mandates providers of personal current accounts in the UK to establish a Monthly Maximum Charge (MMC) for unarranged overdraft fees.

TSB was found to have violated Part 7 by neglecting to reveal the MMC alongside relevant charges in the monthly statements of Spend and Save Plus customers, as well as within its mobile app journey for new customers in relation to overdraft charges.

Additionally, Article 56 of the Order requires banks to promptly report any non-compliance to the CMA within 14 days of becoming aware of the breach. TSB was aware of the breach concerning Spend and Save Plus customers' statements on 1 August 2023 but only informed the CMA on 1 September 2023.



CMA Raises Concerns Over TSB's Breach of Retail Banking Order

The Competition and Markets Authority (CMA) has addressed TSB's failure to comply with regulations on unarranged overdraft charges, highlighting specific breaches in disclosure requirements.