CMA to investigate super-complaint on ‘loyalty penalties’ on consumer and competition law grounds
Industry News | 01/10/18
A super-complaint from Citizens Advice has prompted the Competition and Markets Authority (CMA) to investigate concerns that consumers, typically those who stay with their provider on default or roll over contracts, are paying more than new customers, which Citizens Advice refers to as a ‘loyalty penalty’. The super-complaint states that Citizens Advice has concerns about five ‘essential markets’, which are the savings accounts, mortgages, household insurance, mobile and broadband markets. The CMA will publish a response within 90 days.