Shocking letter from HSBC

formulaonefan

briona wrote: »

I'm really surprised by this!

I've been doing exactly the same thing (moving large-ish sums of money between accounts) but, as of yet, HSBC apparently have had no problems with this. I quit my permanent job at the end of June to go freelance (so haven't even had a set monthly salary being paid in) and while waiting for my freelance earnings to be paid, I've been moving money from one savings account into my current account, and anything I haven't spent has gone back out to a second savings account. So I think there MUST be more to your story...

To be honest though if, after 6+ years of banking with them, HSBC sent me a similar letter I wouldn't waste time arguing with them – I'd clear my money out and never look back! There are far better accounts out there – I've just stuck with HSBC because at the moment, it's convenient.

Did you do cash withdrawals? Mine include cash withdrawals. In one month I moved money from old savings to current to new savings to current account and then to wife's account. As there is a limit in amount you can transfer online from your current account. I setup standing orders. The previous month I moved money from my wife's saving account to my account before withdrawing them as cash.

I''m not worried about them closing the account. I'm worried about credit rating (Not sure whether I should anymore) also It just feels like they can do whatever, whenever they want. They are just destroying what we have worked hard to build over the years.

JimmyTheWig

formulaonefan wrote: »

I''m not worried about them closing the account. I'm worried about credit rating (Not sure whether I should anymore)

No-one on here can think how it could affect your credit rating. And there's quite a bit of collective knowledge and experience here. I think you're safe.
But for your peace of mind I think you should ask HSBC what information they will be passing on to credit reference agencies. And once it is all done and dusted and the account closed you can look at your information with credit reference agencies for free and check for yourself. If there's anything amiss then you can chase it up at that time.

The only thing that could affect things is that the longer you've held your bank account the better - makes you more stable, etc. But if you're worried about this use the other accounts that you've had open for some time.

also It just feels like they can do whatever, whenever they want.

This would be the thing that would bother me. Those annoying T&Cs!

They are just destroying what we have worked hard to build over the years.

What have you built up over the years? is this your credit rating again? If so that's been covered.
I can't think what on a current account takes years to build up.

dunstonh

The wouldnt close it for you transferring money. It looks like they suspect you of crossfiring and that is something they can withdraw the service from you for. I havent seen a case like that for a while but back in my banking days, I did close a few accounts where someone was crossfiring.

brownbabygirl

dunstonh wrote: »

The wouldnt close it for you transferring money. It looks like they suspect you of crossfiring and that is something they can withdraw the service from you for. I havent seen a case like that for a while but back in my banking days, I did close a few accounts where someone was crossfiring.

what is cross firing?

maemaesmummy

found this

cross-firing

Definition

A type of fraudulent trading in which a company plays lending institutions against each other. For example, a company may send payment checks between its different divisions in order to create the appearance of a healthy, profitable company. Auditors may not readily realize that the company is not making money, which in turn leads creditors to believe that the company is still solvent. See also wrongful trading. Also called check kiting.
');}cross-firing is in the Corporate, Commercial, & General Law subject.
cross-firing appears in the definition of the following term: fraudulent trading

kazwookie

IMO you are a bit obsessed by credit ratings.

Like someone has already said they do not think it will effect your credit rating.

I would move my money out of HSBC, and forget all about them, there are far more important thinks in life to worry about.

ShelfStacker_3

JimmyTheWig wrote: »

No-one on here can think how it could affect your credit rating. And there's quite a bit of collective knowledge and experience here. I think you're safe.

Well, it could have a minute effect, as lenders look at the time you've been with your current bank as an indicator of stability - like I say, a minute effect, as most tend to look more at repayment history and available credit etc.

JimmyTheWig

ShelfStacker wrote: »

Well, it could have a minute effect, as lenders look at the time you've been with your current bank as an indicator of stability - like I say, a minute effect, as most tend to look more at repayment history and available credit etc.

I said that further on in my post!

Scousebird_2

formulaonefan wrote: »

I went to HSBC bank and spoke with a customer service advisor. Explained him my situation and he rang the account review team to find out why was my account closed. Before he spoke with them, I told him everything he needs to know. Like expected it is not because I was overdrawn before or I'm not profitable to them. Its because of my recent account activity and transactions. (Looks like banks don't like if there are lots of account activity. i.e. Moving money around from savings account to your current account and then to another savings account and then partial amount back into your current account and partial cash withdrawals). I did a cash withdrawl because I needed to send money abroad as HSBC exchange rates were rubbish and I didn't know the high street exchange service company I used did accept debit card.

The customer service advisor doesn't have any power, now what I have to do is write to HSBC Account Review team (HSBC Security & Fraud Risk Europe) and prove them what each transaction is for and how I got it and where it went etc. I intend to send photo copies of everything I have and everything I can.

So here is something I learned. If you are moving money around from saving to current account and then to another savings account and then back to current account and then some cash withdrawl and some amount to wife's a/c all within short-period of time then banks may think you are into something very dodgy eventhough they were for good reason.

The amount of money being moved around is not even big. Its small money. Very strange.

Regardless of the amount-it sounds like you were just one of the unlucky ones. We sadly live in a society with dishonest people and in my experience, fraudsters will try small transactions to see if the bank will 'cotton on' to what's happening, and then when they think they are untouchable, they strike and send that big transaction-especially in cross-firing and Money Laundering-and this can have an effect on the industry-so much so that honest people suffer. And innocent people suffer. The banks have a 'duty of care' to their customers and are bound legally to protect us under the Proceeds Of Crime Act and therefore they have to treat everyone equally and act upon any suspicions. Let's hope that you get this one sorted and you prevail. Worst case scenario is your account will be marked as settled and furthermore you have other accounts with other banks so you have fallbacks. If you are in any way worried about your credit file then consult HSBC Positive Data Dept and check to see if anything will be submitted in your detriment to the CRA's-although I feel that a 'settled' mark against the account will be the only outcome, of which will have no negative impact to your credit file. Although I am sure this will be confirmed should the closure not be overturned.

monty77

I'd have thought the most likely reason would be that they've done a credit sweep on you (I got my files recently, my current account provider - A&L - seemed to do one every few months on me when I'd applied for nothing additional) and saw something they didn't like. If I were you I'd check my files just to be sure all is well.

If credit file is clean then stuff 'em, move to another account and as people have said prob get a few ££ into the bargain. HSBC cannot report anything negative credit wise as long as you owe them no money or have missed payment on OD so don't worry about that.

M