HSBC reveals extent of charge costs
July 31, 2007 by admin
Filed under News, News-Banking
HSBC reveals extent of charge costs
In another twist to the ongoing dispute between consumer groups and British banks over allegedly “unfair” charges such as overdraft fines, a leading high street bank has revealed for the first time the financial damage it has sustained over the issue.
The figures, released yesterday by HSBC, show that more than £100 million has been paid back, reflecting the scale of customer rebellion against the charges.
HSBC chief executive Michael Geoghegan said that “the size of the refunds that we have made demonstrate our commitment to treating our customers in a fair and transparent manner.”
Last week, the Office of Fair Trading (OFT) officially launched legal action against eight UK banks.
Mr Geoghegan also welcomed this news, which he said would “achieve legal clarity and a resolution for our customers and our business”.
The banks were granted a temporary reprieve as the Financial Services Authority (FSA) agreed to waive all charges until the conclusion of the case, which will come later in the year.
HSBC has recently announced an 11 per cent rise in profits so far in 2007 compared with the same period in the year before, totalling around £7 billion.
