HSBC apologises for bank branch closures 'error' after customers get inaccurate information
HSBC is among the banks are under fire by the CMA
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HSBC is among the banks found to have to have breached rules to keep customers informed by the country's financial services regulator.
The Competition and Markets Authority (CMA) has taken action against HSBC over inaccurate information regarding bank branch closures.
This included the bank listing 167 closed branches as still being open despite having shut down.
In response, the CMA has directed HSBC to make changes to rectify its practices with other banks, including Lloyds, TSB and Allied Irish Bank, having been issued public retailers.
As part of the retail banking market investigation order 2017, banks and building societies need to follow certain rules when sharing information to customers about their products and services.
This can include accurate information on interest rates for loans and sharing the correct locations for bank branches and ATMs.
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HSBC is under fire from the UK's regulator
PAUnder the order, financial institutions have to put in place “open banking which sets high standards for transparent and secure data sharing for retail banking services.
This allows data on products and services to be used by third parties to create apps and to enhance existing services.
According to the CMA, HSBC, Lloyds, TSB and AIB failed to make available correct data on their products or services to consumers.
The regulator confirmed that HSBC did not keep information about its branches accurate and up-to-date.
Following this error, the CMA has issued HSBC with in-depth directions, including an action plan to ensure full compliance in future.
Dan Turnbull, senior director at the CMA, said: “People deserve banks they can trust to serve them well.
“Having correct information is essential when making important decisions about our finances. Banks handling our hard-earned money should have adequate processes in place to ensure this happens.
“It’s disappointing that seven years on, we have to put in place formal enforcement measures to secure better compliance from a major bank like HSBC which, yet again, is in breach of the rules."
“It’s disappointing that seven years on, we have to put in place formal enforcement measures to secure better compliance from a major bank like HSBC which, yet again, is in breach of the rules.
“The CMA will continue to closely monitor all banks’ compliance to ensure customers can clearly and confidently manage their finances.”
LATEST DEVELOPMENTS:
Bank branch closures are continuing at an 'alarming rate', according to Which?GETTY After the retail banking market investigation order 2017 came into effect, the regulator has written publicly to banks 35 times and issued five sets of legally binding directions, to help consumers get accurate information.
As of today, bank customers have been in receipt of more than £47million in refunds.
An HSBC UK spokesperson said: “We are sorry for errors on our part which caused these breaches.
“When we discovered them we reported these to the regulator. We have taken steps to avoid a repeat of these issues in the future.”