The UK’s Competition and Markets Authority (CMA) has warned Monzo over a breach of retail banking regulations.
The warning comes as the challenger bank failed to adequately disclose the monthly maximum charge for its personal current account.
One of the measures introduced in the Retail Banking Market Investigation Order regulation requires banks and building societies to specific the monthly maximum charge that could accrue in relation to a personal current account in any month as a result of exceeding, or attempting to exceed, a pre-agreed credit limit on a PCA.
Banks and building societies must publish the MMC every time they publish any charges that could accrue to an account as a result of exceeding, or attempting to exceed, a pre-agreed credit limit.
Monzo failed to publish the MMC in its fee information document between the period of 25 October 2018 and 19 November 2021. Its MMC is currently £15.50.
Monzo noted it has taken steps to end the breach and prevent such a recurrence happening again.
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Copyright © 2018 RegTech Analyst
