IBU warns HSBC customers about ‘inferior settlement’ offer
The Independent Bankers Union said in a statement it has been informed that HSBC Bank is contacting certain customers, some of whom are also members of the IBU to offer them compensation in relation to what HSBC Bank itself describes as “a legacy operational and regulatory failure in the bank’s now closed brokerage business”.
The IBU received complaints from its members who are also customers of HSBC about the fact that they are being offered an inferior settlement amount than their true legal entitlement for compensation.
The union strongly suggests that impacted individuals are to act with caution before accepting any money in full and final settlement. In addition, the union recommends that these individuals should seek professional advice before signing any waivers in favor of HSBC in return for a compensation which may be far less than what they are entitled to receive at law.
In its correspondence with stakeholders, HSBC is using statements such as “the actions followed were established in discussion with the MFSA” which the IBU perceives as being highly misleading since they project a false sense of reassurance. Such statements seem to incorrectly imply that the selection of customers eligible for compensation, as well as the basis and amount of such compensation carries the approval of MFSA.
The IBU warns its members that a possibility exists were they may be entitled to a higher compensation than the amount which they are being offered, but should they sign a waiver, they will no longer be able to recover the difference.
The Independent Bankers Union has already contacted MFSA urging it to intervene so that customers of the bank are not misled and they are paid their full legal entitlement resulting out of HSBC’s self admitted breach of the law. The IBU will be taking the necessary action to safeguard the interest of its members and urges both its existing members as well as all individuals who are eligible to become members to make contact with the union asap.