More HSBC debt compo

Bank to pay back 18,500 charge victims

THOUSANDS more HSBC customers are in line for compensation after the bank promised to put right years of unfair debt charges.

The victims were customers of John Lewis and HFC Bank between 2003 and 2009. Borrowers who fell behind on credit and store cards in those years were passed on to solicitors who added 16.4% to outstanding balances as a “debt collection charged”.

Regulators said the charge was “unreasonable” and two years ago HSBC set up a scheme to compensate customers stung by the fee.

The bank has now admitted that 18,500 were affected and are in line for compensation, thousands more than its original estimate of just under 7,000.

“Doing the right thing by HFC customers who paid unreasonable debt collection charges during the period 2003-2009 is an important undertaking for us,” HSBC said. “Earlier this year we expanded our review to identify further HFC customers who may be eligible for reimbursement through a broader and more complex investigation of third-party records.”

It said it has written to customers identified through the process and wants them to contact the bank to organise their compensation.

It has also set up a phone line that victims can call on 03455 857 564.

A spokesman for John Lewis Finance said: “We are disappointed that this has happened to a very small number of John Lewis Financial Services Limited customers and we are assured by HSBC that this historic issue has been resolved.”

The Financial Conduct Authority said customers will be compensated where the records indicate they paid unreasonable debt collection charges.