The UK Competition and Markets Authority (CMA) has formally addressed NatWest regarding significant violations of the Retail Banking Market Investigation Order 2017. The breaches pertain to Parts 7, 8, and 9 of the Order, which are designed to protect consumers and ensure transparency in banking practices.

Part 7 mandates that banks must set and communicate a Monthly Maximum Charge (MMC) for unarranged overdraft fees. NatWest failed to provide the correct MMC to approximately 104,800 customers, with the longest breach occurring from June 16, 2023, to April 2, 2024.

Part 8 requires banks to disclose the representative cost of overdrafts in Equivalent Annual Rate (EAR) terms. NatWest neglected to include this information in communications to 66,765 SME customers who were offered overdraft renewals between May 2021 and February 2024.

Part 9 stipulates that banks must offer a price and eligibility tool for SMEs to obtain indicative quotes for unsecured loans and overdrafts. NatWest did not consistently provide this tool on four occasions, with the most extended breach lasting from May 1, 2023, to July 5, 2024, impacting around 200 SMEs each month.

The CMA's letter outlines these concerns and indicates the steps NatWest has taken to rectify the situation, emphasizing the importance of compliance with the Retail Banking Order to protect consumers and maintain fair competition in the banking sector.