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HSBC Expected to Pay Out Millions
For Overcharged Late Payment Fees

HSBC Bank Expected To Payout Millions

The UK’s largest bank has extended its compensation scheme to thousands more customers after they were overcharged on late payment fees.

HSBC bank said it voluntarily agreed to redress customers who held John Lewis Financial Services (JLFS) and HFC Bank credit card, both owned by HSBC.

Between 2003 and 2009 card holders who fell into arrears were hit with a ‘debt collection charge’ of 16.4% of the balance. The flat rate charge was described as ‘unreasonable’ by the Office of Fair Trading (OFT) in 2010.

The largest of the UK’s ‘Big Four’ banks – HSBC already paid out around £4m to 6,700 customers earlier this year. According to the Financial Conduct Authority (FCA) a further 18,500 people have been written to after the lender agreed to extend the compensation scheme. If all people were to claim the compensation would mean a further payout of £11m.

This follows a hefty Payment Protection Insurance (PPI) bill in what’s dubbed as the biggest UK financial scandal of all time. Figures released by the FCA show a current total of £1.6 billion in compensation paid out by lenders, between January and May 2019.

With the looming deadline to claim of 29 August 2019 just 5 weeks away, claims must be submitted as soon as possible or risk missing the chance to reclaim back money owed.