HSBC are closing my account - HELP!!

Dizzie77

Just got home from work to a letter from HSBC saying that they are going to close my account.

I had an unpaid DD last week (I paid funds in the same day it was requested) and as this is the third failed DD (all similar circumstances) they were closing my account.

My account now has plenty of cash (well, not plenty - but more than enough to cover what was going out) - and the bank can see that I paid cash in on the day to cover what was due to go out (I thought I paid it 3 days before the DD was due, but apparently I got the date wrong) and I had transferred paypal funds which cleared the day after.

Is there anything I can do? I've spoken to someone at the call centre who was quite rude and said that I should know when my DD's come out of my account (well yes, I probably should do!) and that there was nothing he could do.

I am waiting for an appt at the branch - but has anyone else been in this situation and survived??
I only have a basic bank account anyway - having moved from Barclays to HSBC after starting my DMP last year.

I can see it is going to be another sleepless night...

Also - anyone advise whether, if HSBC do close the account, will that affect my (already bad!) credit rating???

TIA

neil9313

Dizzie77 wrote: »

Just got home from work to a letter from HSBC saying that they are going to close my account.

I had an unpaid DD last week (I paid funds in the same day it was requested) and as this is the third failed DD (all similar circumstances) they were closing my account.

My account now has plenty of cash (well, not plenty - but more than enough to cover what was going out) - and the bank can see that I paid cash in on the day to cover what was due to go out (I thought I paid it 3 days before the DD was due, but apparently I got the date wrong) and I had transferred paypal funds which cleared the day after.

Is there anything I can do? I've spoken to someone at the call centre who was quite rude and said that I should know when my DD's come out of my account (well yes, I probably should do!) and that there was nothing he could do.

I am waiting for an appt at the branch - but has anyone else been in this situation and survived??
I only have a basic bank account anyway - having moved from Barclays to HSBC after starting my DMP last year.

I can see it is going to be another sleepless night...

Also - anyone advise whether, if HSBC do close the account, will that affect my (already bad!) credit rating???

TIA

Just one question for you, did the bank send you a letter before the "we will close your bank acct letter" warning you not to do overdrawn again?

TheEffect

Basic Accounts aren't reported to Credit Reference Agencies and therefore it will not affect your credit rating. It's unlikely that staff in branch will be able to change the decision and keep the account open.

I don't really see it as a big problem. Just go and open another basic account with another bank and change everything over including direct debits and any money paid in. Lloyds TSB will give you a basic account with visa debit card.

thatsean

Open a new account. Move to Co-op, Lloyds, Halifax etc and you'll get a debit card rather than a cash card. As the DD wasn't paid then i assume that the account won't be below zero when it closes? Therefore there shouldn't be anything to report other than settled.

Paul_Herring

I had an unpaid DD last week (I paid funds in the same day it was requested) and as this is the third failed DD (all similar circumstances) they were closing my account.
[...]
I only have a basic bank account anyway

Money for direct debits should be cleared the working day before (yes, this means DD's for Monday should be in on the previous Friday, unless it's Easter, then it should be Thursday.)

It would appear this mis-understanding has resulted in HSBC thinking you're running your account badly, hence the reason for closing it.

It looks like you're going to have to open an account elsewhere I'm afraid.

peachyprice

TheEffect wrote: »

Basic Accounts aren't reported to Credit Reference Agencies and therefore it will not affect your credit rating. It's unlikely that staff in branch will be able to change the decision and keep the account open.

Sorry to disagree, but that's not so, both my Co-op cashminder basic accounts are reported on Exerian and Equifax.

Dizzie77

Paul_Herring wrote: »

Money for direct debits should be cleared the working day before (yes, this means DD's for Monday should be in on the previous Friday, unless it's Easter, then it should be Thursday.)

It would appear this mis-understanding has resulted in HSBC thinking you're running your account badly, hence the reason for closing it.

It looks like you're going to have to open an account elsewhere I'm afraid.

Thanks Paul - I did say that I had got the date of the DD wrong. I paid the money in on the 20th, thinking that the DD came out on the 24th.
It is my fault - but it is annoying.

Thanks everyone else for your help.

Anyone give a definitive answer as to whether this will appear on my credit reference??

Dizzie77

neil9313 wrote: »

Just one question for you, did the bank send you a letter before the "we will close your bank acct letter" warning you not to do overdrawn again?

Yes - last time I got an unpaid DD letter, it said that they COULD close my account.

thatsean

Can't give you a definitive, as I don't know if HSBC report. I know Barlcays do, but assuming that the account will be in order when it closes, then the worst would be a 1 in the last month to show that the accounts' terms had been breached. Whether it does or doesn't isn't going to remove your need to get a new account, so I'd get that opened ASAP (beware, the Co-Op have the same rule as HSBC re: three strikes)

Hope you get sorted soon.

PNPSUKNET

TheEffect wrote: »

Basic Accounts aren't reported to Credit Reference Agencies and therefore it will not affect your credit rating. It's unlikely that staff in branch will be able to change the decision and keep the account open.

I don't really see it as a big problem. Just go and open another basic account with another bank and change everything over including direct debits and any money paid in. Lloyds TSB will give you a basic account with visa debit card.

Natwest report myn to the different cra's

Dizzie77

thatsean wrote: »

Can't give you a definitive, as I don't know if HSBC report. I know Barlcays do, but assuming that the account will be in order when it closes, then the worst would be a 1 in the last month to show that the accounts' terms had been breached. Whether it does or doesn't isn't going to remove your need to get a new account, so I'd get that opened ASAP (beware, the Co-Op have the same rule as HSBC re: three strikes)

Hope you get sorted soon.

Thanks - I get paid on Friday and mortgage and DMP payments go out on Tuesday next week - after that, I can move my money around. Lucky I have a day off on Friday to try and get it sorted...!!

Thanks everyone for your replies - really useful. (and slightly less panicky now!!)