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| HSBC and Santander customers set for refund | HSBC and Santander customers set for refund |
| (32 minutes later) | |
| People who bank with HSBC and Santander are in line for a refund after the finance watchdog ordered them to pay compensation for failing to alert customers who went into the red. | People who bank with HSBC and Santander are in line for a refund after the finance watchdog ordered them to pay compensation for failing to alert customers who went into the red. |
| The Competition and Market Authority said they broke rules by not sending text messages allowing people to avoid unarranged overdraft charges. | The Competition and Market Authority said they broke rules by not sending text messages allowing people to avoid unarranged overdraft charges. |
| HSBC said it would refund a total of £8m to 115,000 customers. | HSBC said it would refund a total of £8m to 115,000 customers. |
| Santander also said it would comply, but has not worked out the cost yet. | Santander also said it would comply, but has not worked out the cost yet. |
| The CMA said the banks first breached the rules in February 2018. | The CMA said the banks first breached the rules in February 2018. |
| It said the refunds would cover all fees incurred by customers who had gone into unarranged overdrafts without being warned in time to take action. | It said the refunds would cover all fees incurred by customers who had gone into unarranged overdrafts without being warned in time to take action. |
| The competition watchdog added that it was requiring the two banks to have their compliance with the rules checked independently. | The competition watchdog added that it was requiring the two banks to have their compliance with the rules checked independently. |
| This is not the first time that the CMA has taken action against a financial institution over this issue. | |
| In August, it ordered Nationwide building society to refund £6m in charges to 320,000 overdrawn customers after failing to send them the correct text warnings. |