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HSBC admits to paperwork error on loans and plans interest refunds


Michael Browne
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HSBC is expecting to pay back $367m (£218m) of interest payments to some UK customers owing to mistakes in paperwork for personal loans.

 

 

The bank has admitted to failing to include information in annual statements relating to the option for customers to make overpayments.

 

 

This is required in the UK under the Consumer Credit Act.

 

 

The bank outlined the provision in its results for the first half of 2014, but suggested no customers had lost out.

 

 

A spokesman for the bank said there had been "no financial detriment" suffered by customers as a result of the error.

 

 

Omission Under the rules, banks must explain to loan customers that they can make overpayments or partial overpayments on top of their regular repayments.

 

 

HSBC included this in the initial paperwork when customers took out a loan.

 

 

But the bank has admitted that when it sent annual statements, reviewing the latest status of loans, these details were omitted.

 

 

A spokesman said that the error went back a couple of years, but had now been corrected.

 

 

HSBC says it will be contacting all affected customers

 

 

http://www.bbc.co.uk/news/business-28639103

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  • 4 weeks later...
HSBC is expecting to pay back $367m (£218m) of interest payments to some UK customers owing to mistakes in paperwork for personal loans.

 

 

The bank has admitted to failing to include information in annual statements relating to the option for customers to make overpayments.

 

 

This is required in the UK under the Consumer Credit Act.

 

 

The bank outlined the provision in its results for the first half of 2014, but suggested no customers had lost out.

 

 

A spokesman for the bank said there had been "no financial detriment" suffered by customers as a result of the error.

 

 

Omission Under the rules, banks must explain to loan customers that they can make overpayments or partial overpayments on top of their regular repayments.

 

 

HSBC included this in the initial paperwork when customers took out a loan.

 

 

But the bank has admitted that when it sent annual statements, reviewing the latest status of loans, these details were omitted.

 

 

A spokesman said that the error went back a couple of years, but had now been corrected.

 

 

HSBC says it will be contacting all affected customers

 

 

http://www.bbc.co.uk/news/business-28639103

 

What if you have moved house...? Several HSBC loans over many years...

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  • 1 month later...

 

Details of the exact timing of interest refunds, and which customers would receive them, have yet to be outlined.

 

 

The article was dated August 2014 - so we are now 2 months on. Might be worth contacting the FCA helpline and ask them if they have any news - alternatively, write a letter to the HSBC's head / registered office and ask if they have started to advise customers, as you are one and you have received nothing yet .

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