New Delhi, April 25: The investigative arm of the country`s anti-monopoly watchdog has recommended action against HSBC for making false promises to credit card customers and violating the RBI guidelines.
In its preliminary report submitted to the monopolies and restrictive trade practises commission, the Director General of Investigation and Registration (DGIR) said that HSBC violated the rules framed by the Reserve Bank and caused loss to the general public. DGIR found that HSBC was allegedly delaying delivery of bills and realisation of cheques toward payment just to charge increased interest rate, late fee and fine etc.
In the United States, as reported by watchdog organization Household - HSBC Watch, similar allegations are ongoing and show a pattern of abuse dating as far back as 1994. The group publishes complaints about HSBC, many of which allege delaying delivery of bills and processing of cheques toward payment just to charge increased interest rates, late fees and other penalties. What DGIR discovered, according the Household - HSBC Watch, is HSBC’s exportation of the “Household Model” of predatory lending which HSBC freely and clearly stated as their intent.
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