If a cheque came through your letterbox, with no prior warning, you would have every right to be a bit skeptical about the validity of it.
However, some HSBC, First Direct, M&S and John Lewis Finance banking customers are set to receive cheques worth hundreds of pounds in the post - and it’s not the first time.
MoneySavingExpert.com confirmed the banks will be making a second round of payments to some customers who were in arrears on any kind of financial product, including mortgages, overdrafts, credit cards and loans, between 2010 and 2019.
The first cheques, worth between £25 and £100, were sent out from October 2020 to March 2021 as goodwill gestures from the HSBC Group, which all four lenders fall under, in compensation for substandard service.
Writing about the second set of goodwill cheques, MoneySavingExpert.com explained: “The payments are as a result of an internal review which found that it [HSBC Group] had communicated poorly with some customers and that some had paid interest and charges when they shouldn't have.”
The consumer website added: “Some customers who incurred interest or other fees while they were in arrears, which they shouldn't have had to pay, are now having that refunded, and also getting an additional 8% interest on top.”
MoneySavingExpert.com was first alerted to the second redress scheme by a MoneySaver who received an additional £344 after being sent an initial cheque for £50.
While it is unclear how many people will be due a refund, the banking group has around 14 million customers across all its brands and said that most payments have now been made, but some will continue to be paid over the coming months.
Steve Nowottny, news and investigations editor at Money Saving Expert, said: "Just as we saw with the first redress scheme, it's likely some customers and particularly former customers may be taken by surprise by these payments, coming as they do apparently out of the blue.
"So if you were in arrears between 2010 and 2019 and think you may be affected, keep an eye on your account for unexpected payments - and whatever you do don't accidentally chuck a cheque in the bin."
How will I get the refund?
HSBC Group told MoneySavingExpert.com customers may not be eligible for both the compensation and money back for interest and charges.
If you are owed money, the bank says you don't need to do anything - it will send you a cheque in the post or put the money directly into your account.
You can find more information about the refunds on the MoneySavingExpert.com website here.
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