Martin Lewis warns HSBC, First Direct and M&S prospects after the person virtually threw away surprising checks as a result of he thought it was a rip-off
The above clip lasts 37 seconds and was taken from the Martin Lewis Money Show courtesy of ITV Studios Ltd on Thursday January 14th. All rights reserved. You can enable subtitles by selecting the keyboard image at the bottom right of the video. You can also watch the entire episode on the ITV player.
Martin, who is also the founder of MoneySavingExpert.com, stated at ITV's Martin Lewis Money Show yesterday evening (January 14, 2020) that these banks are granting automatic compensation after customers receive poor quality service in arrears.
His warning came after a bystander named Alan got in touch when he received a check for £ 50 out of the blue wondering if it was a scam. Since the show aired, the show has been overflowing with others who received the check, according to Martin, some of whom have also questioned their legitimacy. MoneySavingExpert.com also saw tweets from confused customers after first discovering what happened in December 2020.
Commenting on Alan's letter, Martin said, "I recognize this letter, it is not a scam – cash. And that is really important to a lot of people – if you meanwhile do banking at HSBC, First Direct, M&S Bank and John Lewis Finance." 2010 and 2019, and at one point you were behind on one of your debt instruments – mortgage, credit cards, loans, and others. Well, it admits the customer service was wrong and so it automatically sends compensation. "
Do I have to get a check from the banks?
HSBC Group, which covers all four brands, has uncovered cases where customers behind have not received the quality of service expected between 2010 and 2019 after an internal review and it was decided to correct this. HSBC would not confirm exactly what was done wrong or who is affected, but said that examples of bad practice were poorly worded letters that failed to address customers who may have had problems.
The Financial Conduct Authority (FCA) generally defines arrears as a shortfall in one or more payments due, while for home mortgages it is a shortfall equal to two or more regular payments. HSBC has confirmed that this issue affects all types of consumer banking products that could cause you to default on repayments. from mortgages to personal loans to credit cards.
The banking group wouldn't tell us how many customers were waiting for a withdrawal, but since they have 14 million active customers in the UK across the four brands, even if only 1% were affected, that would add up to 140,000 people – plus there are those who have already closed accounts above. 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. Affected borrowers will receive a goodwill check in the mail for between £ 25 and £ 100, depending on the level of poor service. These were sent at the end of October with the last letters that should arrive at the end of March 2021.
This likely means that a letter, including a check, appears out of the blue. If you receive a letter and 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.
What if I move or change banks?
HSBC says steps have been taken to ensure that your current contact details are in place – including where you have since left the bank – despite Martin encouraging customers to contact their bank if they feel they have one Receiving adequate compensation and not having heard from HSBC.
Martin said, "People will get these letters by March 2021. If you think you have one due and you won't get one after that, I'll be in touch. And if you've moved, I'll be 'I would get it over yours Tell the address. But watch out for this – don't throw it away. This is cash in the bank – insert your check. "