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CMA warns Monzo over banking transaction history breaches

CMA warns Monzo over banking transaction history breaches

The UK's competition watchdog has issued a warning to Monzo after it breached a rule requiring it to send banking transaction histories to over 143,000 former account holders.

UK banks and building societies are required to make transaction histories available to customers in order to make switching banks easier and to address concerns that customers who switched would lose access to their banking history - a key requirement for lenders offering credit.

Bank of Ireland, NatWest Group, and Virgin Money also breached the CMA’s Order in a similar way, but on a much smaller scale than Monzo. In total, nearly 150,000 customers were not provided with their transaction history in the necessary timescale. Some transaction histories were provided a few weeks late, while others have been delayed by more than a year.

If the banks breach the order again, the CMA can take further action by issuing legally binding ‘Directions’. These could include banks having to introduce specific training or carrying out annual compliance audits to prevent this from happening in the future.

The CMA cannot currently impose financial penalties on businesses for breaches of this kind but has called for the power to do so.

Adam Land, CMA senior director of remedies business and financial analysis, says: “Nearly 150,000 people were affected by these banks’ breaches, with the majority being former Monzo customers. This may have made things harder for people trying to borrow money or apply for a mortgage.

“We will be watching closely to make sure these leading names stick to their word and don’t let their customers down again. The Bank of Ireland, Monzo, Natwest Group, and Virgin Money should be in no doubt that the CMA stands ready to take further action if these failures are repeated.”

Comments: (3)

Andrew Smith
Andrew Smith - RTGS & ClearBank - London 22 June, 2021, 16:03Be the first to give this comment the thumbs up 0 likes

And here is a perfect example of why banks shouldnt "own" my data. This data should have been already in the hands of the customer - as customers we shouldnt depend on an API all the time to gain access to such trivial data.....


As part of an effective open finance movement, this sort of data ownership and ongoing access needs to be addressed. There are innovative solutions out there, but we need open finance to embrace them and enforce them on financial organisations - as opposed to the continuation of data being "owned" by the financial institution and not the customer

Nigel Sirett
Nigel Sirett - Vacuumlabs - London 22 June, 2021, 16:56Be the first to give this comment the thumbs up 0 likes

The bigger question is why have 150,000 people left Monzo?  Were they shown the door by Monzo or were they good leavers? Given the basic account is free, would be very surprised to see that many voluntary account closures.

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 23 June, 2021, 11:23Be the first to give this comment the thumbs up 0 likes

Keen to know why these 143,000 account holders didn't download a statement of account by themselves just before they left Monzo. Or did Monzo fire them and revoke their account access suddenly without prior notice? If so, no amount of Open Banking / Open Finance will help them get their SOA.  

At the risk of expressing an unpopular opinion, transaction history is built jointly by customers and banks and should therefore belong jointly to both parties. Customers shouldn't be given a monopoly over this data.