HSBC retrospective debtors obtain compensation of as much as £ 100 for inferior service
HSBC, First Direct, M&S Bank and John Lewis Finance borrowers who have been in debt for the past 10 years may receive up to £ 100 in compensation after receiving inferior level of service from the lenders – and it is anyway no cheating some confusion by letters out of the blue.
The HSBC Group, which covers all four brands, has uncovered cases in which customers lagging behind had not received the quality of service expected between 2010 and 2019, according to an internal review. Examples of bad practices were poorly worded letters that did not address customers who fought.
As a result, affected borrowers will receive checks in the mail between £ 25 and £ 100, depending on the level of poor service. The banking group didn't elaborate on who gets what, but confirmed that it was a goodwill payment – not a refund. Checks were sent out at the end of October with the last letters, which should arrive at the end of March 2021.
HSBC did not tell us how many customers were waiting for a withdrawal, but it has confirmed it will affect all types of borrowing, from mortgages to personal loans to checking accounts with overdrafts and credit cards. And since the banking group has 14 million active customers in the UK, even if only 1% were affected, that could be 140,000 people – and there are also those who have already closed their accounts upstairs.
Read our debt relief help if you're having trouble.
Do I have to do anything to get payment?
According to HSBC, anyone who receives adequate compensation will be contacted directly so you don't have to do anything. This includes customers who have since closed their accounts. In this case, HSBC has already taken steps to ensure that your current contact details are available.
This likely means that a letter, including a check, will come out of the blue, which surprised some customers who feared it was a scam. If you receive a letter and you are unsure of its validity, you can contact your lender directly through any of the usual channels to verify its authenticity. Our Scams Guide also has tips on how to stay one step ahead of scammers.
Some customers reported the following on Twitter: