LONDON, Oct 22 (Reuters) - Britain's competition watchdogsaid HSBC had forced some small businesses to open anaccount with the bank to obtain a loan, breaking commitmentsmade by banks to end the practice.
The Competition and Markets Authority said on Wednesday HSBCand First Trust Bank, which is part of AIB Group, hadto immediately correct the practice and make it clear to staffand SME customers that obtaining a business loan is notdependent upon opening an account.
British banks said in 2002 they would stop the practice -known as 'bundling' - to safeguard customer choice, the CMAsaid.
"We regret that the bank has not been fully compliant with'bundling' undertakings," a spokesman for HSBC said, adding thebank was working with the CMA to fully comply with therequirements.
The CMA plans shortly to start an investigation into Britain's personal current account and SME banking markets. (Reporting by Steve Slater; Editing by Elaine Hardcastle)