Socialist Worker

HSBC caught in savings scam

Issue No. 2282

Banking giant HSBC has been fined £10.5 million. It will have to pay almost £30 million in compensation after one of its subsidiaries scammed thousands of older people out of their life savings.

The Nursing Home Fees Agency advised 2,485 customers with an average age of 83 to invest in bonds to pay for their care home fees.

But the older savers faced heavy fines if they tried to access their money before a minimum period of five years. Many died before they could access the money. Relatives had to pay thousands of pounds in penalties.

HSBC is Britain’s most profitable bank, making £7 billion in the first half of this year. This hasn’t stopped it pouring misery onto its own staff—it announced 300 job cuts three weeks before Christmas.

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Tue 6 Dec 2011, 17:55 GMT
Issue No. 2282
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