MARTIN Lewis' MoneySavingExpert has urged HSBC, First Direct and M&S Bank customers to look out for cheques worth £100s.
The cheques are issued for some customers who were in debt between 2010 and May 2019.
It comes as the three banks plus John Lewis Finance in December paid up to £100 in compensation to customers who were mistreated while in debt.
This scheme ran from October 2020 until the end of last month.
The banks, which are all part of HSBC Group, are now also issuing customer refunds for interest and charges, which shouldn't have been due.
Affected customers are also getting an extra 8% in interest on top, which was first reported by MSE.
How do I get the HSBC cheques?
THE second wave of payouts at HSBC Group is for some people who were in debt between 2010 and May 2019.
The cheques are being sent out automatically, so you don't need to do anything if you've been affected.
You should also still get your money even if you’ve since closed your account.
If you're due a cheque, HSBC said it'll be in touch with you.
It added to The Sun that it'll resend the cheques if customers don't bank theirs.
In December, worried customers took to Twitter to question whether the first wave of cheques were a scam.
You should always check with your bank first if you're not sure a letter you've received is genuine.
In other words, if you do get a cheque out of the blue, make sure you don't bin it.
The second wave of payouts comes after an internal review by HSBC.
The refunds are sent as cheques or if HSBC still has your details, the cash will be paid directly into your bank account.
HSBC said most payments have now been made but some will continue to be paid over the coming months.
The bank declined to confirm how many customers are eligible, exactly who'll get the cash and how much the payouts amount to on average.
However, MSE reports that one former HSBC customer got a cheque of £344.71.
The historic errors affect all types of borrowing.
This means customers who’ve taken out a mortgage, personal loan, credit card, or who have a current account with an overdraft, could be in line for a cheque in the post.
Rules by the financial regulator state that lenders have a duty to treat customers "fairly" and with forbeareance.
For struggling customers, the latter can include measures such as suspending, waiving, reducing or cancelling further interest.
HSBC Group has around 14million customers across all its brands.
Steve Nowottny, news and investigations editor at MoneySavingExpert, said: "It's likely some customers and particularly former customers may be taken by surprise by these payments, coming as they do apparently out of the blue.
"So if you were in arrears between 2010 and 2019 and think you may be affected, keep an eye on your account for unexpected payments – and whatever you do don't accidentally chuck a cheque in the bin."
HSBC declined to comment when contacted by The Sun.
In more HSBC news, the bank is closing 27 branches this year – has your local already gone?
The bank has also confirmed plans to cut 35,000 jobs over three years.
Barclays, HSBC and Lloyds mistakenly paid hundreds of bounce back loans twice while others missed out.
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