Watchdog slams HSBC ‘but once more’ over buyer blunders

HSBC has been singled out by the competition watchdog for ‘yet again’ breaking rules about keeping customers informed.

It was one of four banks that ‘failed to make available correct data on their products and services’, the Competition and Markets Authority (CMA) said.

The others were Lloyds, TSB and Allied Irish Bank (AIB).

The CMA said said HSBC was considered to have broken the rules ‘more extensively’ than the other lenders

HSBC’s failings included not updating branch information, with 167 closed sites shown as still being open.

It also did not update some rates for business loans and told some customers the incorrect maximum they would be charged for an unarranged overdraft on personal current accounts.

TSB did not disclose maximum overdraft charges. AIB failed to publish some loan rates correctly and Lloyds did not properly publish 363 cash machine sites. 

The lenders breached rules put in place in 2017 after the CMA found competition concerns in the retail banking. Lloyds, TSB and AIB have made changes to prevent further breaches, the watchdog said.

It said HSBC was considered to have broken the rules ‘more extensively’ and issued the bank with ‘detailed directions… to ensure full compliance in future’.

The regulator also said there had been ‘previous significant breaches’ by HSBC.

Dan Turnbull, at the CMA, said: ‘It’s disappointing that seven years on we have to put in place formal enforcement measures to secure better compliance from a bank like HSBC which, yet again, is in breach.’

HSBC apologised and said it reported itself to the CMA, adding; ‘We have taken steps to avoid a repeat of these issues.’