HSBC chided by CMA over breaching SME business lending rules
In 2002, HSBC Bank plc, among others, agreed that they would no longer (except for in specific circumstances) make a small and medium-sized enterprise (SME) customer open or maintain a business current account in order to get a business loan.
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This practice is commonly known as ‘bundling’ and was prevented by the behavioural undertakings (undertakings). Following an investigation, the Competition and Markets Authority (CMA) concluded that HSBC Bank plc has breached the undertakings.
The CMA has issued HSBC with written directions designed to improve its compliance with the undertakings. These supersede the previous directions to HSBC Bank plc that the CMA issued in 2014.