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New overdraft alerts as CMA banking rules come into force

In order to comply with a rule change required by the Competition and Markets Authority (CMA) as part of its Retail Banking Investigation which takes effect from 1 February 2018, banks must warn customers before they become overdrawn.

The system, which will apply to new customers from today and be extended to all existing bank customers during February, requires banks to send alerts via texts or a mobile banking app, to assist account holders with avoiding unnecessary charges. The Retail Banking Market Investigation Order 2017 implements the CMA’s reforms. Full details can be found at:

https://www.gov.uk/government/news/new-overdraft-alerts-as-cma-banking-rules-come-into-force.

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