Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

HSBC Fined £6.2 Million for Mishandling Customers in Financial Difficulty

by May 23, 2024
May 23, 2024
HSBC Fined £6.2 Million for Mishandling Customers in Financial Difficulty

HSBC has been fined £6.2 million by the UK’s Financial Conduct Authority (FCA) for failing to properly support customers in arrears or experiencing financial difficulty.

The FCA highlighted that shortcomings in HSBC’s policies, procedures, and staff training led to “disproportionate action” against those behind on payments, exacerbating their financial troubles.

Between June 2017 and October 2018, HSBC did not adequately consider customers’ individual circumstances, resulting in improper affordability assessments when negotiating payment arrangements. The FCA noted that HSBC lacked sufficient measures to identify and address cases of unfair treatment.

Initially set at £8.97 million, the fine was reduced by 30% as HSBC agreed to settle and took corrective actions. The issues came to light in 2018 when HSBC itself identified the problems and reported them to the FCA.

HSBC invested £94 million in rectifying the issues and provided £185 million in redress payments to over 1.5 million affected customers. An HSBC UK spokesperson stated: “We’re sorry that between 2017 and 2018 some customers who fell into arrears did not receive the service they expected from us. We reported these issues to the FCA at the time and have fully remediated impacted customers. We have invested in our processes since these matters came to light and are pleased to have resolved these historic issues with the regulator.”

Therese Chambers, co-head of enforcement at the FCA, emphasized the importance of fair treatment for customers in financial difficulty: “People must be able to trust their lenders to treat them fairly when in financial difficulty. By failing to do so, HSBC put 1.5 million people at risk of greater financial harm. It deserves credit for identifying the issue and putting it right. The cost it has incurred in doing so, however, should be a warning to all lenders that they need to understand their customers’ circumstances so as not to make a bad situation worse.”

This penalty underscores the critical need for banks to implement robust systems to support customers facing financial hardships and to ensure that such issues are promptly and effectively addressed.

Read more:
HSBC Fined £6.2 Million for Mishandling Customers in Financial Difficulty

0
FacebookTwitterGoogle +Pinterest
previous post
Exploring the Latest Innovations in Vehicle Safety
next post
Nationwide Customers to Receive £385 Million Windfall After Profitable Year

You may also like

Virtual Data Rooms Unveiled: How They Revolutionize Secure...

August 22, 2024

Britain’s top philanthropist Sir Chris Hohn condemns ‘cruel’...

August 26, 2025

What SMEs should look for to get a...

June 27, 2024

UK bioethanol producers warn US trade deal threatens...

June 2, 2025

Consumer confidence rebounds as spending sees biggest rise...

February 11, 2025

Two-thirds of SMEs find it difficult to retain...

October 24, 2023

Expanding Your Talent Pool: 5 Reasons to Hire...

March 29, 2023

UK disposable incomes to fall by 3.8% in...

December 30, 2022

Farage puts 25% odds on becoming Prime Minister...

January 20, 2025

Best Crypto Wallet for Business: Secure and Reliable...

March 27, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • “XRP Futures Hit $1B — WinnerMining Cloud Mining Shows You How to Earn $1,850 a Day”

      August 28, 2025
    • UK to fast-track next-gen RNA therapies with £30m Darlington biofoundry

      August 28, 2025
    • Government looks at applying National Insurance to rental income in Autumn Budget

      August 28, 2025
    • National Wealth Fund commits £200m to UK battery storage push

      August 28, 2025
    • XRP price prediction hits new highs, GMO Miner helps you earn $6,800 a day

      August 28, 2025
    • West End retailers lose £310m from VAT-free shopping ban in first half of year

      August 28, 2025

    Categories

    • Business (8,904)
    • Investing (2,246)
    • Politics (16,503)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved