Monzo, a leading digital bank, has been ordered by the UK Competition and Markets Authority (CMA) to manage its departing customers better.
According to a statement by the CMA, Monzo must review how it communicates with exiting customers regarding historic financial transactions. Apparently, Monzo informed the CMA it had failed to send transaction histories to over 13,000 customers, despite reporting a similar breach last year.
The CMA reports that Monzo has since contacted all affected customers to offer them a copy of their transaction history.
Adam Land, Senior Director at the CMA, commented on the Monzo infraction:
“It’s simply not good enough for a major bank like Monzo to repeatedly fail its customers by not following clear rules. Having a record of your financial transactions can act as important evidence needed to secure a loan or mortgage – so Monzo’s failure to provide these put an unnecessary obstacle in the way of thousands of customers. We have ordered the bank to make changes which mean customers should not face this issue in the future. We’ll be watching to make sure proper procedure is followed.”
In June of 2021, the CMA chastised Monzo for a similar infraction that involved over 143,000 customers who did not receive a transaction history following the closure of their Monzo accounts. At that time, Monzo took similar steps to resolve the transgression.
In the UK, all Transaction Histories must be sent within 40 days of the personal current account (PCA) or business current account (BCA) being closed.
