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Watchdog warns HSBC over ‘bundling’ business accounts and loans 


Watchdog warns HSBC over forcing purchasers to take out enterprise present accounts to get loans

Over 200 HSBC purchasers have been wrongly informed they needed to take out a enterprise present account to get a mortgage, a watchdog says.

The Competitors and Markets Authority (CMA) stated HSBC broke banking guidelines over 9 years by telling small companies it was a requirement.

The transfer – dubbed ‘bundling’ – affected 204 prospects, regarding loans price greater than £800,000. 

Warning: The CMA said HSBC broke banking rules over nine years by telling small firms it was a requirement to take out a business account to get a loan

Warning: The CMA stated HSBC broke banking guidelines over 9 years by telling small companies it was a requirement to take out a enterprise account to get a mortgage

HSBC reported itself to the CMA and ended the loans from final September. It has supplied refunds of all of the charges and expenses.

The CMA has now imposed legally binding instructions on HSBC making certain it takes motion to make sure the breaches don’t occur once more.

Adam Land, senior director on the CMA, stated: ‘The rules are clear. Banks should not ask customers to open or retain business accounts in order to have a loan with them. 

It is right that HSBC have offered refunds and we will monitor compliance with our directions closely.’

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