HSBC are closing my account - HELP!!

gt94sss2

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.)

This isn't the case with HSBC (and Lloyds I think) on normal accounts where a 'same day' overdraft is possible.

However, on a basic account you can't get any overdraft and HSBC do say that they will close a basic account if 3 or more direct debits bounce - they do this instead of charging for each failed direct debit like most bank basic accounts..

Regards
Sunil

Dizzie77

When I spoke to the guy at the call centre, he said that if I had phoned them to tell them that I had paid the money in before 3.30pm on the day the DD was due, they would have paid it.
But then he said that the DD was refused at 3.15AM on that day - so quite how I was supposed to phone to tell them before that, I don't know....
But worth noting for future.....pay in cash, phone and tell them, and you might just get your DD paid!!

stclair

There is a similar process with natwest and rbs that any payments IE Direct Debits.

You have up until 15.30 on the day to ensure there is enough money in your account to cover the transactions.

If you have transferred money into your account from another account or paid it in over the counter.

You need to tell the cashier or call Natwest/RBS and tell them that the money paid in is to cover the transactions.

This will allow lending or the branch to change the status of the transactions so that there paid so you don't get charged etc.

jambosans

Dizzie77 wrote: »

When I spoke to the guy at the call centre, he said that if I had phoned them to tell them that I had paid the money in before 3.30pm on the day the DD was due, they would have paid it.
But then he said that the DD was refused at 3.15AM on that day - so quite how I was supposed to phone to tell them before that, I don't know....
But worth noting for future.....pay in cash, phone and tell them, and you might just get your DD paid!!

Or why not in future avoid this confusion, and put money in the account the working day before. Regardless of whether it is possible to pay money in the same day a payment is due off, you are less likely to have confusion with cut-off times etc. if they money is in the account the working day before. Being able to credit an account before close of business to avoid charges is a fair practice, and I think other banks should adopt this, however you have to play by the banks rules when leaving it so last minute.

As for HSBC closing your account, well, personally I think this is a better policy than continuing to charge you. Rather than profiteering from your money mis-management, they acted diligently (and more fair to you IMO), and refused to do business with you. All the charge nay sayers wouldn't have much to complain about if every bank practiced this.

Apologies for the slight rant. Obviously I don't know your personal circumstances, however looking at it subjectively, three failed direct debits, suggests poor money management - and I would assume that's the way HSBC see it.

bengal-stripe

HSBC has a "three-strikes-and-you-are-out" policy for their basic account.

If bank-charges are found to be unlawful and will be out-ruled, all banks will adopt similar policies.

Open a basic account elsewhere (and invest in a note book and a pencil to keep track).

jambosans

bengal-stripe wrote: »

If bank-charges are found to be unlawful and will be out-ruled, all banks will adopt similar policies.

I agree with you in sentiment, however in practice I feel that banks (being businesses) will simply adopt a different charging model that sees profit come from elsewhere. An example in my opinion of a model which may be assessed as fair by the OFT but still allows the bank to greatly profit from it's customers, is, the Halifax/ Bank of Scotland Reward Current Account.

Obviously this is just pure speculation, but I think if the OFT set the goal posts in regards to bank charges, the banks, in response, will move the goal posts in another area. Which, in defense of the banks, is what any half decent business would do, whether it is fair or not, well, that's a different matter.

Extant

The on-going test case is not to decide whether bank charges are legal or not. They're not going to be magically out-ruled simply because the OFT is found to be able to assess their fairness (or not). I'd not get too excited considering the OFT have already set a maximum of £12 for credit card charges - you're misguided if you think they're going to disappear.

Other charging models will be adopted; they'll just be worked out with a legal backing and consultation with the OFT and FSA.

just_about

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.

The basic accounts are reported to the different cra's.

Dizzie77

Again, thanks for the replies - I have said that it was entirely my fault - I got the DD date wrong.

I have applied for a LLoyds TSB account - so fingers crossed that will open smoothly and I can transfer my banking across to them fairly smoothly.

snowymalone

stclair wrote: »

There is a similar process with natwest and rbs that any payments IE Direct Debits.

You have up until 15.30 on the day to ensure there is enough money in your account to cover the transactions.

If you have transferred money into your account from another account or paid it in over the counter.

You need to tell the cashier or call Natwest/RBS and tell them that the money paid in is to cover the transactions.

This will allow lending or the branch to change the status of the transactions so that there paid so you don't get charged etc.

HSBC / First Direct do the same with their normal current accounts - just so long as you ring and tell your branch and pay cash in, they won't charge you and they honour transactions. I've got to do so myself, today (payday tomorrow but a cheque I wrote weeks ago cleared this morning :mad: - phoned FD just now and they're fine with it so long as I bring it back into credit by this afternoon.)