Household HSBC Watch

Sunday May 1, 2005 — HSBC Holdings PLC (HBC) will pay its U.K. customers back the interest it earns during the time between when the customer makes an electronic payment and when it reaches the customer’s account, a report in U.K. newspaper the Sunday Business said. U.K. banks make GBP30 million to GBP60 million a year on the interest earned during these delays, the report said U.K. watchdog the Office of Fair Trading has estimated.

Meanwhile in the US, watchdog organization Household - HSBC Watch said delays in crediting HSBC customer accounts continue to generate billions of dollars in illicit revenue through predatory techniques such as failing to send statements, failing to credit payments in a timely manner, returning payments to customers unopened and other ploys. “It was documented in court during Shea v Household and it continues to this day” said the group. Identity theft, late fees, past due fees, overlimit fees, interest, fees for telephone payments, insurance, useless warranties, and other fees continue to hurt HSBC North America and HSBC Finance Corporation customers, the group said.