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Bank refunds 'could cost HSBC £300m'

Customers hoping to win money back from banks for unfair penalty charges have been given a boost by comments from HSBC.

The banking giant said earlier this week that it could be forced to pay out around £300 million in refunds for the charges, which include those levied on those who exceed their overdraft limits.

Along with seven other financial institutions, the bank is currently fighting a High Court case on the charges - which was set up to establish whether or not they were unfairly high.

Prior to the case being called last summer, thousands of customers had pursued their claims through county courts - and millions of pounds were repaid by banks, including £115 million from HSBC.

All individual claims were then frozen, so that they could all be decided by the High Court.

Joe Garner, a general manager at HSBC, told Reuters that the £300 million figure was the "best estimate" of potential losses currently available.

The bank is the only one involved in the High Court case to release such a figure so far.

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