HSBC Error Sent Recovery Loans Under Wrong Name

A management glitch at HSBC has meant that some of its customers have been offered government-backed business loans under the wrong name.

The bank wrote to Rebound Loan Scheme (BBLS) applicants in its personal name rather than business name.

The government has told the banks running the initiative not to require personal guarantees for the cash.

The recovery loans are part of a package of measures to help struggling businesses cope with the impact of the coronavirus.

Small businesses can receive up to £50,000 through the scheme, with more than a million businesses accessing the funds.

HSBC alone has approved nearly 140,000 of the loans, worth around £4.55bn.

The lender said that it will contact the people who received the loan on its own behalf and that they will not be personally liable.

A spokesperson for HSBC UK said: “We are aware of a clerical error that has affected a small number of our recovery loan offer letters.

“We apologize for any confusion this may have caused and would like to assure affected customers that they will receive an update letter shortly.”

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