HSBC customers who fell behind on repayments between 2010 and 2019 have been sent refunds of £50, after the bank admitted it delivered a substandard level of service over a nine-year period.
Speaking on the Martin Lewis Money Show, consumer expert Martin Lewis said: “Two people told me they received cheques worth £7,000 in the post this week.”
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The customers, who banked with HSBC, First Direct, Marks & Spencer bank, or John Lewis over the nine-year period, are getting the refunds for fees and interest changes incurred over the nine-year period.
HSBC, which is now issuing further refunds, has admitted it delivered a substandard level of service over the nearly-one decade.
HSBC Group, which all four brands come under, said an internal review uncovered instances where customers in arrears hadn’t received the quality of service expected. Last year, it decided to put this right.
If you qualified for this, you will have received a cheque by March 2021
HSBC has not confirmed exactly what it did wrong, but said examples of bad practice included poorly worded letters that didn’t engage customers who might have been struggling to make repayments.
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By GlobalDataNow, it’s refunding customers who were charged extra fees and interest too – and some of these refunds and compensation payouts are much higher.
The latest refunds are linked to fees and HSBC – the umbrella company – is now processing these refunds.
HSBC previously said anyone due compensation would be contacted directly, so you don’t need to do anything – even if you’re no longer a customer.
Anyone concerned can contact the lender online
This may be because you had one of the qualifying products over the nine-year period and have since changed address or you name.
A HSBC UK spokesperson previously said: “We always strive to do the right thing by our customers. Regrettably, some historic cases where customers were in arrears at times fell short of this commitment.
“We are taking action to put that right and remediate customers who may have been impacted. Customers do not need to do anything.”
