HSBC customers are being refunded thousands of pounds as the bank sets out to fix the payment problem it made over ten years ago. Martin Lewis explains why and what to do.
Since 2020, payouts of £50 for compensation have been landing in the post for people who have been customers of HSBC, First Direct, Marks & Spencer bank and John Lewis Finance between 2010 up to 2019.
However, due to the fees and interest changes that occurred in the 9-month period, customers were receiving more than they expected.
The Mirror reported that on the Martin Lewis Money Show last night (May 18), the finance expert said: “Towards end of the last series, I told customers of John Lewis Finance, HSBC, M&S bank and First Direct customers to expect a cheque in post of they were in arrears 2010 and 2019.”
And when questioned by a viewer asking if their £390 cheque from First Direct was a scam, Martin replied: “It’s unlikely”.
“People were wrongly charged fees and interest and are now being refunded in addition to the refunds last year.”
“It’s a small 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 a scam.” He said.
“Two people this week told me they received cheques worth £7,000 in the post this week,"
Customers can contact their bank to confirm the refunds if they are suspicious but Martin emphasised: “You were overcharged so if you receive a cheque, cash it in as it’s your money,”
Why people are being refunded
HSBC, and the four groups that are owned by HSBC, issued a £50 payment to customers who borrowed money and fell behind on repayments between 2010 and 2019.
These repayments can include any type of consumer banking product, like mortgages and personal loans, where someone might be struggling to make payments.
The bank has said that their customers who were in arrears were not receiving the standard of service expected and last year they decided to fix it.
HSBC has not stated particularly what happened but gave examples of poor practice like letters that failed to communicate with people who could have been experiencing problems with repayments.
How to claim the refund.
The most recent refunds connected with fees and HSBC are now being processed and customers affected were sent cheques in the post worth £50 and everyone affected will have had theirs by March 2021.
HSBC have said that anyone who is due compensation would be contacted directly, even if you are no longer with the bank or groups included.
But if you have moved house or changed your name you can contact the lender online here .
