HSBC glitch sends coronavirus bounce back loans in error
An administrative error at HSBC has led to customers receiving government-backed loan offers with incorrect information.
HSBC claims to have processed £4.5bn in BBLs so far
The bank addressed applicants for the Bounce Back Loan Scheme (BBLS) in their personal names, instead of their business name.
HSBC has said it is in the process of fixing the issue and that its customers will not be liable.
“We are aware of an administrative error that has impacted a small number of our bounce back loan facility offer letters,” the bank tells the BBC.
The Bounce Back Loan Scheme (BBLS) is a new scheme designed to enable businesses to access finance during the coronavirus pandemic.
It is designed to be simpler and quicker than the existing Coronavirus Business Interruption Loan Scheme (CBILS).
The programme is built around getting loans of up to £50,000 to businesses in a quick and efficient manner.
According to MoneySavingExpert, a quarter of small business owners are waiting longer than 30 days to get their funds.
In the reported statistics, HSBC ranked as one of the worst offenders. It kept 42% of applicants waiting more than a month on the status of their loan.
The bank reports that it has had to process 140,000 BBLS worth £4.5 billion in 2020, the same number it would normally process over a 10-year period.
