Britain’s financial regulator and information watchdog will warn banks that they cannot hide behind data protection rules if they fail to alert savers of better deals, the Financial Times reported on Monday.
Politicians and consumer campaigners have been putting pressure on British lenders to raise rates for savers as fast as they have hiked rates on mortgages.
Earlier this month, banks told the Financial Conduct Authority that they could not tell certain savers about deals if they had opted out of marketing communications, the FT said.
In response to this, the FCA and the Information Commissioner’s Office on Tuesday are planning to send a letter to UK Finance, the banking lobby group, disputing the position held by banks, the report said.
The letter is expected to tell lenders that they can communicate better savings rates to customers and still meet data protection rules under the General Data Protection Regulation, the newspaper said.