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HSBC misled customers on charges
An HSBC commercial has been criticised for misleadingly claiming Bank Account Plus customers are not charged for withdrawing cash abroad.
In fact, the bank charges a 2.75% exchange rate adjustment to cover card processing and handling costs. That adjustment is "essentially a transaction fee" charged to HSBC customers, the Advertising Standards Authority ruled.
The watchdog found the HSBC commercial in breach of advertising rules and told the bank not to repeat it unless changes were made.
"Because there was no mention of the exchange rate fee in the on-screen text, and because we understood that cash machine withdrawals from overseas ATMs always incurred this charge, we concluded that the ad was misleading," the ASA said.
The television advert for HSBC Bank Account Plus showed six people from different countries holding up their local currencies.
A voice-over said: "Whoever's on the banknotes with Bank Account Plus you can withdraw them worldwide and we won't charge you."
Text at the bottom of the screen explained that the bank account had a monthly fee of £12.95 or £6.47 per month for the first six months for new customers.
It continued: "Withdrawals from Cirrus/Maestro ATM's worldwide, free from HSBC transaction fees. Minimum 12-month term. Some Cirrus/Maestro members may charge fee."
An HSBC spokesman said: "We take our obligations to communicate clearly to our customers very seriously and in no way would deliberately attempt to mislead them.
"We genuinely believed the television commercial was factual, but we acknowledge and accept the judgment of the ASA. The television commercial was only on air for a short period and will not be repeated."
http://money.aol.co.uk/hsbc-misled-c...28191209990012
In fact, the bank charges a 2.75% exchange rate adjustment to cover card processing and handling costs. That adjustment is "essentially a transaction fee" charged to HSBC customers, the Advertising Standards Authority ruled.
The watchdog found the HSBC commercial in breach of advertising rules and told the bank not to repeat it unless changes were made.
"Because there was no mention of the exchange rate fee in the on-screen text, and because we understood that cash machine withdrawals from overseas ATMs always incurred this charge, we concluded that the ad was misleading," the ASA said.
The television advert for HSBC Bank Account Plus showed six people from different countries holding up their local currencies.
A voice-over said: "Whoever's on the banknotes with Bank Account Plus you can withdraw them worldwide and we won't charge you."
Text at the bottom of the screen explained that the bank account had a monthly fee of £12.95 or £6.47 per month for the first six months for new customers.
It continued: "Withdrawals from Cirrus/Maestro ATM's worldwide, free from HSBC transaction fees. Minimum 12-month term. Some Cirrus/Maestro members may charge fee."
An HSBC spokesman said: "We take our obligations to communicate clearly to our customers very seriously and in no way would deliberately attempt to mislead them.
"We genuinely believed the television commercial was factual, but we acknowledge and accept the judgment of the ASA. The television commercial was only on air for a short period and will not be repeated."
http://money.aol.co.uk/hsbc-misled-c...28191209990012
