CMA reports on banks’ compliance with bundling rules

The CMA has published the 2020 annual audit into whether 8 leading UK banks are complying with undertakings they gave not to bundle loans and accounts.

During the reporting period covered by the 2020 report the CMA identified breaches by four of the eight banks:

  • Lloyds Banking Group, Clydesdale Bank and Danske Bank breached the undertakings by requiring small businesses to open business current accounts (BCA) with them in order to apply for loans provided under the Bounce Back Loans Scheme;
  • AIB NI failed to comply with the undertakings as it did not include working in its business lending policy not to require SME customers to open a BCA in order to open or maintain a business loan or deposit account.

Further potential breaches have been identified by three banks and are currently being investigated by the CMA.

Lucy Hadrill