Competition Markets Authority
Lloyds Banking Group (Lloyds) breached the Small and Medium-sized Enterprises Banking Undertakings. Lloyds required SME customers holding a PCA to open a Business Current Account (BCA) in order to progress their application for a loan under the Bounce Back Loan Scheme (the Scheme). Lloyds gave undertakings in 2002 to not bundle BCAs in this way. Lloyds started offering the loans under the Scheme on 8 May 2020.
Lloyds has committed to address its breach of the undertakings by:
- Implementing and updating processes by middle of September 2020;
- Advising its customers applying for a loan under the Bounce Back Loan Scheme (BBLS) that they are not required to open or maintain a BCA in order to apply for a Bounce Back Loan and offering customers the choice upfront to apply for a fee-free Loan Servicing account or a BCA;
- Writing to existing BBLS customers with a BCA to offer the chance to switch to a fee-free loan servicing account; and
- Providing 2 months notice to customers holding BCA of account charges being imposed.
The action plan on this page sets out information on Lloyds actions to address the breach.