U.K. Regulator Says First Trust Bank, HSBC Broke Business Lending Rules
October 22 2014 - 3:22AM
Dow Jones News
By Rory Gallivan
LONDON--U.K. regulator the Competition and Markets Authority
said that First Trust Bank and HSBC Holdings PLC (HSBA.LN) breached
its rules by forcing small and medium-sized businesses to open
business accounts if they want a loan.
The CMA said Wednesday it has issued the two banks with
directions after an investigation into eight banks concluded First
Trust Bank and HSBC "breached the undertakings by indicating to
some SMEs that opening an account with them was a condition for
obtaining a business loan."
"Breach of these undertakings is a serious matter and we have
directed First Trust Bank and HSBC on the actions they must take to
immediately correct the situation--so that it is clear to both
their staff and their SME customers that obtaining a business loan
is not dependent upon opening an account," CMA Chief Executive Alex
Chisholm said.
Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
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