Shocking letter from HSBC

formulaonefan · 27 August 2008 at 6:51PM

I got a shocking letter from hsbc today. It said

Following a recent review of your account(s) we regret to advice you that we no longer wish to provide you with banking facilities. We are therefore formally providing you with 30 days notice of our intention to close your account(s) on 19 september 2008.

I was absolutely shocked and gutted when I saw this letter. I couldn't speak with them as their office is now closed. I have been with them for the last 5-6 years and I have maintained very good account. I was overdrawn 3 months but I knew the limit and I was within limit. I recently moved a sum from saving account to my hsbc and then moved it to another savings account and then moved it back and moved it to wife's account and moved back again. There was lots of activity recently because of that but that shouldn't cause any problems should it?

Any help or advice please? who can i contact about this. I dont want HSBC to get away that easily. I want to know the reason why???? Can I go to financial authority and speak about this?

Cranston_2 · 27 August 2008 at 6:56PM

I think the small print says they can do this if they want.

Phone them up and see if you can get anymore information out of them. I think there must be a reason behind this.

formulaonefan · 27 August 2008 at 7:02PM

Cranston wrote: »

I think the small print says they can do this if they want.

Phone them up and see if you can get anymore information out of them. I think there must be a reason behind this.

I hope they will be receptive and let me know the reason so I can clear their doubts. They can't simply close my account because of reasons they think something is dodgy. It will hurt my credit rating won't it? Its not good at all. I'm very unhappy and angry.

ShelfStacker_3 · 27 August 2008 at 8:15PM

You say you were overdrawn; how much by? Did you exceed your limit at any point, even if they didn't charge you? Were you in credit at any point during those three months, or were you just sunk all the way into your overdraft and never out of it? Those may be reasons why, as banks now are very conscious of people living in their overdrafts and are taking steps to stop it. Although, the best thing to do would be to call and ask why.

(Please note: despite what my signature says, I am basing this merely upon educated guesswork and what some people have said about their accounts being closed. Not basing this on anything HSBC themselves say yada yada yada.)

formulaonefan · 27 August 2008 at 8:23PM

ShelfStacker wrote: »

You say you were overdrawn; how much by? Did you exceed your limit at any point, even if they didn't charge you? Were you in credit at any point during those three months, or were you just sunk all the way into your overdraft and never out of it? Those may be reasons why, as banks now are very conscious of people living in their overdrafts and are taking steps to stop it. Although, the best thing to do would be to call and ask why.

(Please note: despite what my signature says, I am basing this merely upon educated guesswork and what some people have said about their accounts being closed. Not basing this on anything HSBC themselves say yada yada yada.)

I was comfortably inside the overdraft limit. I didn't cross the overdraft limit at all. Once my pay came in I was in credit again and I wasn't in overdraft all the time. I used the overdraft as additional funds for investment purposes. Like I said before I moved around my savings between two savings account and my wife's account and I also took cash out to invest overseas. I think they might have thought i'm money laundering or something. Hope they will listen and understand the reasons behind those moves and not cancel my account. I'm hoping to get mortgage when property market comes up so I dont want any account closing to affect my ability to get a mortgage.

Ch4rlieB · 27 August 2008 at 8:31PM

Really don't see why your so bothered. Just go open a bank account at another bank.

Unless there is something your not telling us... Which is the reason why HSBC are closing the account.

ShelfStacker_3 · 27 August 2008 at 9:00PM

formulaonefan wrote: »

I think they might have thought i'm money laundering or something.

Sounds likely. Give them a bell and ask what's going on.

Scousebird_2 · 27 August 2008 at 9:43PM

formulaonefan wrote: »

I got a shocking letter from hsbc today. It said
I was absolutely shocked and gutted when I saw this letter. I couldn't speak with them as their office is now closed. I have been with them for the last 5-6 years and I have maintained very good account. I was overdrawn 3 months but I knew the limit and I was within limit. I recently moved a sum from saving account to my hsbc and then moved it to another savings account and then moved it back and moved it to wife's account and moved back again. There was lots of activity recently because of that but that shouldn't cause any problems should it?

Any help or advice please? who can i contact about this. I dont want HSBC to get away that easily. I want to know the reason why???? Can I go to financial authority and speak about this?

Were you moving high amounts and was your mandated income (eg Wages) paid in normally when you were transferring money. You need to ask why the account is to be closed. Ask to speak to a supervisor who can look at your account notes and establish the reasoning. Personally if this is not a closure under AML (money laundering regs) then this activity leads me to suspect what is known as cross-firing (which can still form part of suspected money laundering). From what you have said, based on everything you have said in your post, you seem to be innocent in your intentions but unless you explain why this money was revolving round accounts, the closure will remain. Banks don't always have to provide a reason for closing an account either unless you request in writing copies of information held about you, even then it may not give you the full picture.

zenmaster · 27 August 2008 at 9:51PM

It certainly sounds like they might have money laundering in mind. I can't think of any other explanation.

I hope you get it sorted out to your satisfaction soon.

formulaonefan · 28 August 2008 at 7:25AM

Ch4rlieB wrote: »

Really don't see why your so bothered. Just go open a bank account at another bank.

Unless there is something your not telling us... Which is the reason why HSBC are closing the account.

Ch4rlieB, I'm bothered because I'm worried about my credit rating. Me and my wife have been working hard and doing plenty of overtime and have been saving money slowly for years now. Its hard earned money and we are saving for our first home. I dont want this to affect my ability to get mortgage. That's why I'm really worried. I have two other bank accounts (barclays and lloyds), so switching bank account is not a problem. I dont want my credit rating affected when we are about to buy a house.

There is nothing else to it. I have told everything as it is.

formulaonefan · 28 August 2008 at 7:29AM

Scousebird wrote: »

Were you moving high amounts and was your mandated income (eg Wages) paid in normally when you were transferring money. You need to ask why the account is to be closed. Ask to speak to a supervisor who can look at your account notes and establish the reasoning. Personally if this is not a closure under AML (money laundering regs) then this activity leads me to suspect what is known as cross-firing (which can still form part of suspected money laundering). From what you have said, based on everything you have said in your post, you seem to be innocent in your intentions but unless you explain why this money was revolving round accounts, the closure will remain. Banks don't always have to provide a reason for closing an account either unless you request in writing copies of information held about you, even then it may not give you the full picture.

I intend to let them know everything there is they need to know. I'm still shocked and losing my sleep over this. You work hard over years to build good credit rating to get a mortgage and then suddenly this.

Shocking letter from HSBC

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