Monzo Bank has been accused by the UK antitrust watchdog of breaching four areas of retail banking rules, including misinforming customers about the true levels of service quality and account charges.
In an open letter to the popular neobank, the Competition and Markets Authority (CMA) said instances of “non-compliance” had been identified relating to service quality data, financial disclosure practices, and delayed reporting of issues.
As Monzo has taken action to remedy the issues, CMA director Colin Garland said the watchdog “does not consider it appropriate to take further formal enforcement action in relation to these breaches at present”.
However, he noted that it was not the first time Monzo had failed on rules about informing customers about fees for maximum unarranged overdraft each month, “making this especially concerning” and meaning that the CMA “will monitor Monzo’s future compliance closely”.