The CMA has issued Directions to Barclays, which was in breach of the ban on banks forcing small business to open or maintain a current account in order to access another product, such as a loan.
Aashna Shroff, personal finance expert at money.co.uk, comments:
"Barclays signed up to the SME banking undertakings on bundling - the practice of forcing a small business to open a current account when taking out a loan - back in 2002, so the fact that the breaches occurred as far back as 2010, but were not uncovered and reported until last year, is worrying. While we are pleased that the customers affected will be compensated, this should never have happened in the first place.
"All customers, including small business customers, need to be vigilant about their rights. Small businesses need to know that qualifying for a loan must never be contingent on taking out any other products with the bank granting the loan.
"If you are one of the small businesses affected by this latest issue, Barclays should put it right. But, if you're not satisfied, it's worth making sure you are getting a good deal. You can always shop around and, if necessary, switch your bank account."
Notes to Editors:
Press release from the CMA
Salman Haqqi spent 10 years as a journalist reporting in several countries around the world. Salman left the world of journalism and moved to the UK to pursue a passion for personal finance and a desire to help people make informed financial decisions.Read Salman Haqqi's articles and guides
Salman is our personal finance editor with over 10 years’ experience as a journalist. He has previously written for Finder and regularly provides his expert view on financial and consumer spending issues for local and national press.