August 2019 – Nationwide Building Society has been ordered to refund £6million to members by the Competition & Markets Authority (CMA) for breaking the rules. The society had not been alerting members as was required before imposing charges for unarranged overdrafts. The rules (CMA RBMI Order 2017 Part 6) have been broken 20 times since February 2018 with adverse effects on 320,000 members.
There is no mention of these events in the society’s annual report and the directors completely forgot to mention it at the AGM in July and it just doesn’t appear on their website either – “Open, Honest and Transparent”?
Fortunately for the members of this society the CMA is unable to impose a fine for this offence although they are now seeking the powers to do so for any future misdeeds. Any adverse effect on directors’ bonuses would be unthinkable.