HSBC Holdings PLC has tentatively agreed to settle claims that it illegally colluded with other banks to require credit-card holders to arbitrate disputes, including debt collections, according to cardholders' lawyers.

Under the agreement, the London company will drop an arbitration clause and a ban against class actions from its consumer credit card agreements until at least late 2013, according to the Philadelphia law firm Berger & Montague PC, which represents the cardholders.

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