Shocking letter from HSBC

bigstoo

I'd be suprised if this affects your credit rating in any way. HSBC haven't claimed you've breached any terms of your account have they?

One possibility is that HSBC are just looking to reduce their "order book" and are closing the accounts of a selected demographic - the ones that perhaps don't make them as much money as they like.

I think it's only a matter of time before I get a similar letter from my credit card company. I've had it a couple of years and not paid them a penny in interest. And they've had to pay out the cash back. In their eyes I suppose I'm a bad customer.

ldn-100

Under the money laundering rules the banks are not permitted to tell you on what grounds they suspect you of money laundering, but will tell you if they are closing your account for that reason. Source: Working Lunch.

It is far more likely to be because the bank are adjusting their customer/risk profile.

Milarky

I got the same letter in the last week ["following a review..."] as the OP did. In my case they closed my four accounts without notice however. I have complained therefore that the failure to give notice [they gave no reasons in addition] is a breach of their own conditions and of the bankng code. I have threatened them with the ombudsman [FOS] and reminded them it costs £450 in standard fees to refer a case. I have invited them to settle for a nominal £25 for the removal of my banking services.

The fact that the OP did receive notice (and I was talking to these guys on the phone in the week) may be a coincidence or it may be that they have attempted to sharpen up their act by including a reference to '30 days notice'. In that case there is not much the OP can do (to complain) besides trying to speak to the people in that section and see if they will review it once he has explained that his conduct of the account was neither delinquent nor questionnable

Update: The bank has replied today that they aren't even going to look at this - they have merely said they were 'unhappy' about the 'account operation' and, specifically the 'transactions passing through the accounts' which is a 'poor' atitutude to say the least - so I've had ot complain to the FOS (in whom I don't have a great deal of confidence - but there you go)

I'll try and get them on the Banking Code (failiure to give notice) since they haven't really made out a case that not giving notice was necessary. And, of course, from reports here it appears that giving notice when wishing to close current accounts is the norm even with HSBC. Their attitude is, of course, contemptible. It isn't a case of 'having a job to do' that compells them brush off any calls they receive as though they don't make mistakes - that is arrogance.

(Anyway, I'm hoping that FOS will (as required) put my conditions for settlement to the bank - it will now cost HSBC £50 more for not settling with me - and that the bank will have the sense to blink at that stage. As I said before I didn't technically 'crossfire' anyway since I had no overdraft and no chequebook on the account)

[BTW 'crossfiring' - which is a completely new term to me - is something I do all the time - but with other banks not with HSBC! My HSBC account had no overdraft to play with. But they may not have liked the fact that I simply paid money in OTC and then used the current account the same day to make payments to non bank accounts. This, however, is completely legitimate use of a bank account - indeed 'paying bills' is what bank accounts are for]

formulaonefan

I called them up this morning. Absolutely unhelpful comments/response. I told them everything they need to know. They don't want to listen either. She basically read over the phone what the letter said. I told her about the good banking relationship I had with HSBC over the years and she suggested I speak with my local branch and ask them to add a memo and the review team will look into it. I was absolutely gutted.

I'm not going to let this go without a fight. I will write a formal complain letter to HSBC about this and then I will write a letter to FSA and fight this. After I have won and after I have kept the account I'm going to change bank account and put this one as silent account.

Tim_L

I honestly doubt there is a credit issue, but you can clear this up by looking at your experian report. HSBC can't transmit information to other organisations about your status except via the credit report because of data protection rules, so that's the beginning and end of things you need to check. If you have other bank accounts you're sorted, but watch direct debits.

Banks are pants. They do arbitrary things, they won't tell you why, they won't allow any meaningful dialogue about anything because you have to talk to CS drones who don't give a monkeys and don't actually have any information anyway. I spent about two weeks a while ago just trying to get my address changed properly when they'd changed it wrong - in a truly Kafkaesque twist they wouldn't talk to me because the address on my account was wrong. Eventually I persuaded someone to put me through to someone in my branch who changed it manually.

dunstonh

and then I will write a letter to FSA and fight this.

Which will do you no good. The FSA dont handle complaints at a consumer level. That isnt their remit.

Why do you think the account is being closed?

Common reasons not linked to credit issues are crossfiring, unprofitability (i.e. drawing money out more or less in full on pay day), using a personal account for business transactions, abuse to staff

sdooley

If you suspect someone of a criminal offence with money in a bank account it is a criminal offence to let them know you suspect them. 'Tipping off' regulations a.k.a. Catch 22.

formulaonefan

dunstonh wrote: »

Which will do you no good. The FSA dont handle complaints at a consumer level. That isnt their remit.

Why do you think the account is being closed?

Common reasons not linked to credit issues are crossfiring, unprofitability (i.e. drawing money out more or less in full on pay day), using a personal account for business transactions, abuse to staff

Common reasons:
Credit Issues - I haven't got any credit issues with HSBC before. I was overdrawn three months but I knew my limit.
Abuse to Staff - Never!
Unprofitability - I took loan from them and paid regularily/monthly. I didn't take any loan from them recently. They made loads of money from me. Example: three months overdraft fee.
Crossfiring - Maybe this because of my savings account transaction. There is nothing to it. I would want to explain it to them if they let me.
Personal ac for business - I have got no business.

formulaonefan

sdooley wrote: »

If you suspect someone of a criminal offence with money in a bank account it is a criminal offence to let them know you suspect them. 'Tipping off' regulations a.k.a. Catch 22.

So how will one be able to prove those transactions are not suspectful and they are from your savings account?

epsilondraconis

formulaonefan wrote: »

...
I'm not going to let this go without a fight.
...
After I have won and after I have kept the account I'm going to change bank account and put this one as silent account.

You state that when you win you will be changing bank accounts anyway and not use the HSBC account. As you have decided that you are going to change banks anyway, you may as well save yourself a lot of hassle and just make the move now, before you have problems with direct debits etc.

I too would be very angry if I was treated the way you have been - especially when there appears to be little reasoning for their decision. However, sometimes these things just happen, perhaps they shouldn't, but they do. Clearly you won't be using HSBC's services again and so maybe its just best to move on.

Don't forget, you can get £100 or so from some banks if you switch current accounts.

Hope it all works out for you.