HSBC, First Direct, M&S Bank and John Lewis Finance borrowers who fell behind on repayments between 2010 and 2019 receive compensation payments of £ 50 each
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Thousands of HSBC customers could receive clearing payments this month as the bank seeks to correct a payment error made more than a decade ago.
Customers who did business with HSBC, First Direct, Marks & Spencer bank or John Lewis Finance between 2010 and 2019 and who fell behind on their payments could be compensated, warned consumer expert Martin Lewis during the ITV Money Show on Thursday.
“If you banked with HSBC, First Direct, Marks & Spencer Bank or John Lewis Finance between 2010 and 2019 and were in mortgage or checking account arrears at any time, you may be entitled to a payment, ”Martin explained.
“HSBC, which manages all three accounts, admitted their customer service was wrong, so they automatically issue a compensation.
“These checks are sent out until March. If you receive one, do not put it in the trash. They are worth £ 50 cash in the bank. “
Borrowers who fell behind on repayments between 2010 and 2019 must pay up to £ 50 in compensation after the bank admitted it had provided a substandard level of service over the nine-year period.
The HSBC Group, to which all four brands fall, said an internal review revealed instances where late customers did not receive the expected quality of service. Last year he decided to correct this.
HSBC did not confirm exactly what it had done wrong, but said examples of bad practice included poorly worded letters that failed to engage customers who may have struggled to repay.
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The Financial Conduct Authority (FCA) generally defines credit arrears as any shortfall in one or more payments due, while for home mortgages it is a shortfall equivalent to two or more regular payments.
HSBC has confirmed that this issue impacts all types of consumer banking products where you might fall behind with repayments; from mortgages to personal loans to credit cards.
The banking group has 14 million UK customers active in all four brands, even if only 1% were affected, which would be 140,000 people – so if you get a check, cash it.
Relevant borrowers will be mailed goodwill checks worth £ 50 depending on the level of service received. These will be issued until the end of March 2021.
HSBC previously said that anyone owed for compensation would be contacted directly, so you don’t have to do anything even if you’re no longer a customer.
An HSBC UK spokesperson said: “We always strive to do the right thing for our customers. Unfortunately, some historical cases where clients were sometimes late have not lived up to this commitment.
“We are taking steps to correct this and remedy customers who may have been affected. Customers have nothing to do.
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