Britain’s competition watchdog said HSBC andNorthern Ireland’s First Trust Bank have violated the nation’s rules regulation how small business are offered financial products.
Among allegations, the Competition and Markets Authority (CMA) claims that HSBC forced some small businesses to open an account with the bank to obtain a loan, breaking commitments made by banks to end the practice.
The CMA noted that HSBC and First Trust Bank, which is part of AIB Group, had to immediately correct the practice and make it clear that obtaining a business loan is not dependent upon opening an account for small business customers.
British banks agreed to discontinue the practice, known as bundling, in 2002, to protect consumer choice.
“We regret that the bank has not been fully compliant with ‘bundling’ undertakings,” a spokesman for HSBC said, adding the bank was working with the CMA to fully comply with the requirements.
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