Customers of some of the UK's most popular banks are being sent refunds and on The Martin Lewis Money Show this week, the consumer champion explained why.
Those who banked with HSBC, FirstDirect, M&S and John Lewis finance, which are all part of HSBC, between 2010 and 2019 have been receiving £50 compensation payouts in the post.
But now customers are receiving even more money as the lender seeks to rectify a payments error it more than a decade ago, with some getting up to £7,000 back.
One viewer who received money from FirstDirect reached out to Martin on the show to ask if it was a scam. While the expert said it was "unlikely", those in doubt can contact their banks to verify the refund.
Speaking on his ITV show, Martin said: "Towards the end of the last series I told customers of HSBC, FirstDirect, M&S and John Lewis finance which are all part of HSBC to expect a cheque in the post if you'd been in arrears between 2010 and 2019.
"That was the first batch, what they're doing now is for people who were wrongly overcharged fees and interest they are giving refunds and they're sending cheques and payment notices for refunds in the post.
"Now it's a smaller group of people than the first group, so if you got the first don't expect necessarily to get the second."
One viewer then said he had been sent a £390 FirstDirect cheque in the post, asking the consumer expert if it was a scam, reports The Mirror.
"It's unlikely," Martin said. "People were wrongly charged fees and interest and are now being refunded in addition to the refunds last year.
"It's a smaller group of people than last time that fit these refunds.
"But if you receive a letter in the post, don't throw it away thinking it is spam."
If in doubt, customers can contact their bank to verify the refunds.
Martin then revealed that two people had told him they'd "received cheques worth £7,000 in the post this week".
He said: "You were overcharged so if you receive a cheque, cash it in as it's your money."
