Nationwide to refund customers £900,000 after failing to warn about unarranged overdrafts.

Nationwide is to repay customers £900,000 in refunds after failing to warn them about unarranged overdrafts.

The Competition and Markets Authority (CMA) has announced that Nationwide building society failed to send appropriate text warnings to customers before charging them for an unarranged overdraft.

Although Nationwide did send text alerts, they didn’t contain a warning that customers would be charged.

This affected around 70,000 customers, who were known by Nationwide to have difficulty managing their accounts and a higher risk of entering unarranged overdrafts.

Nationwide will be refunding the overdraft fees incurred as a result of this error.

This is the second time in 6 months that the CMA has had to act against Nationwide, having secured £6 million in refunds in August 2019.

When the CMA last took action in August 2019, Resolver saw nearly 1971 complaints made about Nationwide (excluding PPI-related complaints).