First Direct closes accounts after 'racist' complaints over jobs switch

First Direct has closed down a number of accounts after receiving racist complaints from customers about the decision by HSBC, the telephone and internet bank's parent, to move 4,000 jobs to the far east.

The bank yesterday admitted some customers had responded to the massive transfer of jobs away from the UK with "distasteful remarks". First Direct said 20 accounts were closed after HSBC announced the outsourcing plan - the largest so far by any UK company - last October.

"We received a small number of remarks which were discriminatory and which we considered inappropriate as a multicultural employer and multinational group," a First Direct spokesperson said.

While the Banking Code entitles lenders to close accounts, First Direct said it had not forced customers to move away. However, it confirmed its relationship had been brought to an end with some of those who complained after they aired what it deemed to be unacceptable views either on the telephone or by email.

HSBC attracted heavy fire from unions and the media at the end of last year after it laid out plans to transfer 4,000 call centre and processing jobs to India, China and Malaysia by the end of 2006.

The move, which will see 1,500 jobs go next year, 2,000 in 2005 and a further 500 in 2006, will also see the closure of centres in Sheffield, Birmingham, Swansea and Brentwood, Essex.

Despite being part of HSBC, very little of First Direct's business will be affected by the parent group's transfer of jobs to Asia. The business, headquartered in Leeds and a major employer in the area, will continue to operate call centres in the UK.

However, First Direct, which has just over one million customers, does outsource cheque and credit card processing to HSBC, and some of that work is likely to be done from the subcontinent in the future.