How Long Does A Cheque Take To Clear Hsbc

If a cheque came through your letterbox, with no prior warning, you would have every right to be a bit skeptical about the validity of it.

However, some HSBC, First Direct, Marks & Spencers and John Lewis Finance banking customers are set to receive cheques worth thousands of pounds in the post - and it's not the first time.

The first cheques, worth between £25 and £100, were sent out from October 2020 to March 2021 as goodwill gestures to borrowers who fell behind on repayments between 2010 and 2019 from the HSBC Group - which all four lenders fall under - in compensation for substandard service.

And earlier this week, Money Saving Expert Martin Lewis assured thousands of HSBC customers receiving cheque refunds worth up to £7,000 that they are genuine and should not be thrown away.

Martin Lewis confirmed the HSBC cheques are not a scam (Image: ITV)

Mirror Online reports that during the consumer champion's hour-long special edition of The Money Show Live, he explained how all four banks are now issuing further refunds for fees and interest changes incurred over the nine-year period.

Martin told viewers: "Towards end of the last series, I told customers of John Lewis Finance, HSBC, M&S bank and First Direct customers to expect a cheque in post if they were in arrears between 2010 and 2019."

One viewer then said he had been sent a £390 First Direct cheque in the post, asking the founder of MoneySavingExpert.com if it was a scam.

"It's unlikely," Martin said.

He continued: "What they're doing now is for people who were wrongly overcharged fees and interest, they're giving refunds and they're sending cheques and payment notices for refunds in the post.

"Now, it's a smaller group of people than the first group so if you got the first , don't expect necessarily to get the second."

If in doubt, customers should contact their bank to verify the refunds.

Martin added: "Two people this week told me they received cheques worth £7,000 in the post this week.

"You were overcharged so, if you receive a cheque, cash it in as it's your money."

What types of payments are affected?

The Financial Conduct Authority (FCA) generally defines credit arrears as any shortfall in one or more payment due, while for home mortgages it's a shortfall equivalent to two or more regular payments.

HSBC has confirmed this issue impacts all types of consumer banking product where you could fall behind with repayments; from mortgages to personal loans to credit cards.

The banking group has 14 million active UK customers across the four brands, even if just 1% were affected that would amount to 140,000 people - so if you receive a cheque in the post, cash it in.

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