HSBC Fined £6.2 Million by FCA for Inadequate Customer Support During Financial Hardship

The Financial Conduct Authority (FCA) has imposed a £6.2 million fine on HSBC for failing to adequately support customers facing financial difficulties. The FCA determined that between June 2017 and October 2018, HSBC did not fully take into account the financial situations of customers who missed payments.

The FCA noted that HSBC's approach during this period may have exacerbated the challenges faced by struggling customers. An estimated 1.5 million HSBC customers could have been inadvertently affected by these practices.

In response to these findings, HSBC has acknowledged its shortcomings and implemented corrective measures. The bank has invested £94 million to address the issues and provided £185 million in compensation to the impacted customers. The FCA took these remediation efforts into account when calculating the final fine.

This situation underscores the importance for financial institutions to offer robust support to customers experiencing financial hardship. Lenders should focus on collaborating with customers to find solutions, rather than compounding their difficulties.

For further details, you can read the BBC News article here.