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

natweststaffmember

If people have missed this than a big bump on this one, come on people this is good stuff.

Beate

What they are basically saying is that they are so filthy rich that they could easily afford to pay back everyone of their customer's bank charges ten times over PLUS stick to free banking and would still make a whopping profit.

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