Wednesday, 16 December 2020

HSBC Group In Mass Compensation Payout For Poor Service

HSBC is paying up to £100 in compensation to thousands of customers who’ve been mistreated while in debt

HSBC, First Direct, M&S Bank, and John Lewis Finance are paying out up to £100 in compensation to customers who’ve been mistreated while in debt.

HSBC Group, which all four banks come under, is making the payouts to say sorry about poor service some borrowers received.

Examples of the bad service include poorly worded letters to customers who might be struggling.

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

Depending on the severity of the poor service, customers are being sent out cheques in the post worth between £25 and £100.

It’s unclear exactly how HSBC Group is deciding how much each person gets, or how it defines "arrears".

HSBC Group hasn’t said how many people it’s compensating, but the errors affect all types of borrowing.

This means customers who’ve taken out a mortgage, personal loan, credit card, or who have a current account with an overdraft, could be in line for a cheque in the post.

HSBC Group has around 14million customers across all its brands, so even just 1% would amount to 140,000 people.

Lenders started sending out cheques from October, with the last letters due to arrive by late March 2021.

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