HSBC pays up to £100 in compensation to thousands of customers who were abused while in debt

HSBC, First Direct, M&S Bank and John Lewis Finance are paying up to £100 in compensation to customers who were abused while in debt.

The HSBC group, to which the four banks belong, is making the payments to apologize for the poor service received by some borrowers.

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HSBC Group compensates customers for poor serviceCredit: PA: Press Association

Examples of poor service include poorly written letters to customers who might be in trouble.

HSBC Group said it was now compensating affected borrowers with the goodwill gesture after an internal review found defaults between 2010 and 2019.

Depending on the severity of the poor service, customers are being mailed checks worth between £25 and £100.

It’s unclear exactly how the HSBC Group decides each person’s amount or how it defines “arrears”.

How to file a complaint with your bank

If you think you have been treated unfairly by your bank or building society, it may be worth filing a formal complaint.

According to Citizens Advice, your bank should:

  • Treat customers with reasonable care and skill. For example, by acting responsibly and keeping accurate records of your finances.
  • Do the tasks when they say they will. Or if they don’t give you a specific time frame, they have to do what they promised within a reasonable time.
  • Provide services at the agreed price. Or if a price has not been agreed, a reasonable cost must still be expected.

You should consider filing a complaint if you believe your bank has failed to comply with any of the above points.

All lenders are required by law to have a written complaints process, details of which you should find on your bank’s official website.

Here are the complaint details for some of the major lenders:

If your bank is not listed above and you cannot find details of their complaint online, you can ask them to send you the information.

The bank must then investigate your complaint and respond to you within eight weeks.

You should know that they may send you an initial response first, before their final response.

If the company does not respond to you within eight weeks or if you are still not satisfied, you may be able to complain to the Financial Ombudsman Service.

Before writing to your bank, make sure that your problem was caused by the bank and not by a third party.

How is compensation sent?

Payments, which were first reported by MoneySavingExpert, are sent automatically – so you don’t have to do anything if you’ve been affected.

You should also receive your money even if you have since closed your account.

The HSBC group did not specify the number of people it compensates, but the errors affect all types of loans.

That means customers who have a mortgage, personal loan, credit card, or have a checking account with an overdraft could be in line for a check in the mail.

The HSBC Group has approximately 14 million customers across all of its brands, so even just 1% would represent 140,000 people.

Lenders started sending checks from October, with the last letters due in late March 2021.

Concerned customers have since taken to Twitter to question whether the checks were a scam.

You should always check with your bank if you are unsure whether a letter you have received is genuine.

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HSBC customers reported receiving checks as apologies for poor service

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HSBC customers reported receiving checks as apologies for poor service

An HSBC customer said: “I used to do business with HSBC years ago but closed my account. I received a letter with a check today.

“They compensated me because they thought the service they gave me was not up to par. Ay, shout out to HSBC. I might open an account with you again in the future!”

Another said: “What is this letter that people get from you? How did you calculate £50?”

Someone else replied: ‘My partner and I received one this weekend out of the blue. Both with a check for £50 attached. Not sure why!’

A spokesperson for HSBC UK said: ‘We always strive to do the right thing for our customers.

“Unfortunately, some historical cases where customers were sometimes late in payment did not meet this commitment.

“We are taking steps to correct this and remedy customers who may have been affected. Customers have nothing to do. »

In other HSBC news, the bank is closing 27 branches this year – is your local branch gone yet?

The bank also confirmed its intention to cut 35,000 jobs over three years.

Barclays, HSBC and Lloyds mistakenly paid hundreds of bounce-back loans twice while others defaulted.

Martin Lewis reveals how to cut debt with new HSBC card that gives you 0% interest for 32 months

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