HSBC Have To Pay Out Again

The Financial Services Authority (FSA) have ordered HSBC to pay nearly 30 million pounds compensation to elderly customers who were mis-sold investment products that they were told would fund long-term care costs.

Between 2005 and 2010 a subsidiary of the bank, NHFA (Nursing Home Fees Agency) had advised 2485 customers to invest in investment bonds and other asset based products as a way to fund long term care costs. The FSA say that a sample review of these customers, average age 83, suggests that nearly 90% were mis-sold.

The reason the FSA say the advice given wasn't right is because the products sold were meant to be held for at least 5 years yet many of the customers who had invested were not expected to live that long. They say that the combination of high product charges and capital withdraw meant that their money was reduced more quickly than it would have been with alternative products such as high interest fixed rate accounts or an ISA.

There are many people who have suffered financial loss because of the mis-selling of financial products such as PPI, mortgages and investment products. Here at Precision Claims we can help you claim compensation for any financial loss.