This is the OFT order imposed against HFC (HSBC) in 2010 from which it can be seen that the OFT ordered the bank to stop adding collection charges until they changed their terms and conditions.
Prior to 2010, when HFC sent an account to solicitors to recover outstanding debts (e.g. on personal loans, credit and store cards), it added a charge to reflect the costs of the recovery. HFC’s agreements with customers gave it the right to do this and the fee was added after the customer had defaulted on the loan/credit card payments.
Since writing this blog it has been confirmed by the FCA that the above wording was provided by HSBC and they just copied and pasted it to me.