Impact of refunds on banks

[gt94sss2]

From HSBC's interim report today:

 

....the impact in the UK of unauthorised overdraft fee refunds, which increased our costs by US$236 million.

 

This is an industry-wide issue and the size of the refunds that we have made demonstrate our commitment to treating our customers in a fair and transparent manner. Indeed, we very much welcome the agreement with the OFT to take the case to court to achieve legal clarity and a resolution for our customers and our business. In Group terms, our Personal Financial Services business in the UK typically represents less than 7 per cent of our worldwide profits.

 

Regards

Sunil

[gt94sss2]

As a follow-up to my original post, it seems that HSBC/First Direct have been the most generous in returning overdraft fees to customers, despite having the lowest market share of current accounts in the UK (of the big 5)

 

So far:

 

Bank Amount of refunds

 

HSBC: US$236 million (£116million)

LloydsTSB: £36million

HBOS: £79million

 

Regards

Sunil

[mailmannz]

Well generous isnt a word Id use for explaining banks handing back charges they should never have made in the first place.

 

Mailman