The Office of the Comptroller of the Currency (OCC) has fined HSBC Bank USA $35m over credit-monitoring product and ordered the lender to make restitution to affected clients.
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The bank was fined due to the past billing practices related to certain credit card add-on products, which were sold to customers of HSBC Bank Nevada, a former subsidiary of HSBC Finance Corporation and to customers of HSBC Bank USA.
However, HSBC North America Holdings said that HSBC Bank USA has reached an agreement with the OCC to resolve a regulatory review of past billing practices.
Under the agreement, HSBC Finance Corporation will pay a civil money penalty of $35m to the comptroller.
The bank said that refunds of product fees and related charges will be made to affected customers, both existing and former, in line with a refund plan currently being developed by HSBC.
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By GlobalDataThe total amount of customer refunds will be determined by the refund plan, and will be funded primarily by HSBC Finance Corporation, with the balance funded by HSBC Bank USA.
