Nationwide to repay 70,000 customers £900,000 for not warning about unarrange overdraft charges

NATIONWIDE is to refund a share of £900,000 to customers after it failed to warn people about unarranged overdraft charges.

The bank will issue refunds to 70,000 customers by the end of May 2020.

Nationwide was found by the Competition and Markets Authority (CMA) to have not properly warned customers that they would be charged for going into an unarranged overdraft.

Although the bank did text customers, these messages did not contain say that they would be charged, the CMA said.

The CMA ruled this would not have given customers fair time to take action and avoid unexpected fees.

Nationwide was found to have broken Part 6 of the CMA's Retail Banking Market Investigation Order.

An investigation into the text alerts was issued in August 2019 although it isn't clear when exactly the texts were sent out.

Nationwide says it is contacting customers and refunds will be automatically issued to those affected.

Customers will be refunded the charge they initially occurred.

Sara Bennison, chief marketing officer at Nationwide, said: “While all members received their texts on each and every occasion, this review identified that alerts sent to members who were in Collections did not explicitly state that they would be charged an unarranged overdraft fee.

“While these members haven’t been overcharged, we appreciate these texts are designed to help people avoid unarranged overdraft charges, so we apologise that on this occasion we didn’t meet the high standards we set ourselves.

“From 11 November 2019, the Society removed unarranged overdraft charges, so this issue will not occur again in the future."

More to follow…

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