On January 20, 2017, the FCA announced that HSBC Bank Plc has
voluntarily agreed to set up a redress scheme of approximately
£4 million for customers who suffered detriment by paying
unreasonable debt collection charges imposed by HFC Bank Ltd and
John Lewis Financial Services Ltd. HSBC now owns both HFC and JLFS.
Customers of HFC and JLFS who, between 2003 and 2009, fell into
arrears were referred to the firms' nominated solicitors. The
solicitors added a "debt collection charge" of 16.4% of
the customer's balance to each customer's account. The
charge was identified by the Office of Fair Trading in 2010 as
unreasonable as it did not reflect the actual costs of collecting
the debt and the OFT in November 2010 formally ordered HFC to stop
adding the collection charge until it varied or introduced new
terms into its agreements with customers to reflect the charge.
JLFS was not within the scope of the OFT's review. In practice,
JLFS and OFT had stopped adding a debt collection charge in
November 2009, and in 2010 reversed the charge from all live
In December 2015, the FCA announced that it would reconsider its
decision not to investigate allegations about the conduct of HFC
following a complaint to the Complaints Commissioner. Following
that announcement, the FCA conducted a review of complaints against
HFC and JLFS and established that approximately 6,700 customers
paid debt collection charges prior to 2010 either in full, or in
part, and were potentially entitled to redress. HSBC has agreed to
repay to such customers the excess amounts above the actual and
necessary debt collection costs, in accordance to a methodology
that has been agreed by the FCA.
HSBC has also committed to repay the amount of the incorrectly
overcharged interest to certain other customers. For each group of
customers which are due redress, HSBC will also pay 8% interest per
annum. HSBC will proactively contact all affected customers.
The implementation of the mandatory exchange of initial and
variation margin for non-cleared OTC derivative trades in the EU
commenced on 4 February for financial counterparties with the
largest derivatives portfolios.
On February 9, 2017, HM Treasury published a paper summarizing responses to its consultation on the transposition of the revised MiFID and three draft statutory instruments to facilitate transposition.
We consider below the circumstances in which a person may hold an "unpaid vendor lien", the effect of such a lien following the Supreme Court case of Menelaou v Bank of Cyprus UK Ltd  EWHC 2656...
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