Can the bank do this?

ilovebanksMCMLXXXI

I'm guessing the answer is 'yes' but will ask you guys anyway.

A few years ago I lost my business and had a some financial problems - common story!

APOLOGIES FOR THE LONG POST BUT YOU NEED ALL THE FACTS.

A couple of weeks ago I received a flyer through my door from a bank (won't mention which one but it's the internet only part of HSBC!), addressed personally to me asking me to apply for a current account.

I was guaranteed a £250 overdraft as that is standard on their accounts.

It was the first time in years a bank had approached me so I applied.

They wrote to me soon after saying I'd been accepted and my new current account was being opened with a £500 overdraft.

Excellent - For the first time in years I felt I was back in the world of normality!

Once the account was open (last week) I called to activate my internet banking and was bombarded with offers to apply for everything going. I declined the personal loan but applied for the credit card as these are obviously handy things to have.

Sure enough, I was accepted for a £500 credit card based upon the strength of my current account application.

Today I received my new credit card and I have a nice £500 overdraft and £500 on this card.

I called the bank this evening with an admin query - the girl on the other end of the line is tapping away on her keyboard and then I get put on hold.

She then come back on the line to inform me she's found something on my file (obviously my credit problems from a few years back) and tells me they aren't in a position to offer me any form of accounts and they will be closing my new current account and credit card!

I've now closed my other bank, all my direct debits/standing orders are changing over to this new account etc etc etc

I've only acted in good faith, never answered any questions dishonestly and have never hidden anything.

Is there anything I can do to (a) keep this account and (b) keep the overdraft and credit card.

This is going to be an absolute nightmare - my old bank probably won't take me back if I have to reapply

I was going to use the credit card to help towards a small family break - something we've not had for years!

I accept what they've found on my credit file, never denied it or hid it but they've made a mistake by accepting me. I've overcome my financial difficulties (just not on paper) and would be a good customer to them - I have my new account cards in my wallet and have used them!

Can they just cut me loose like this or do I have some way of getting them to honour the agreements - even if via some form of goodwill?

They are calling me back tomorrow; I assume they will simply reiterate their stance so would be nice to have some ammo.

If possible, please help!!

Kindest regards

TFD_2

That is a really crappy for FD to treat you.

Unfortunately they can indeed do this. I can't see you getting any joy, sorry.

stephane_2

I am with FD & their customer service has always been spot on but I must admit that I found it sad the way they are dealing with the situation. You should strongly put your point across to FD as to why you've been able to use the account for the last week or two & that now they want to close it.
You may need to come to a compromise with them & maybe offer them to close the credit card account & reduce the overdraft & suggest to them to see how you'll manage your account. You should also formally complain to FD in writing

ilovebanksMCMLXXXI

stephane wrote: »

I am with FD & their customer service has always been spot on but I must admit that I found it sad the way they are dealing with the situation. You should strongly put your point across to FD as to why you've been able to use the account for the last week or two & that now they want to close it.
You may need to come to a compromise with them & maybe offer them to close the credit card account & reduce the overdraft & suggest to them to see how you'll manage your account. You should also formally complain to FD in writing

Thank you for finding the time to reply to my post, is much appreciated.

I was thinking of doing exactly that i.e. take the credit card back but let me keep the overdraft and see how we go - afterall, it's their mistake so a little bit of goodwill wouldn't go amiss and what is £500 to HSBC? Not as much as it is to me, that's for sure!

Thank again

moneypenny2k

stephane wrote: »

I am with FD & their customer service has always been spot on but I must admit that I found it sad the way they are dealing with the situation. You should strongly put your point across to FD as to why you've been able to use the account for the last week or two & that now they want to close it.
You may need to come to a compromise with them & maybe offer them to close the credit card account & reduce the overdraft & suggest to them to see how you'll manage your account. You should also formally complain to FD in writing

I'd agree wholeheartedly with this. I've always found FD pretty darn good. Even when I got myself in a spot of bother a few years back. It's why I've stayed with them for over 15 years. No mean feat for me. I hope you get it sorted. Let us know what happens

ilovebanksMCMLXXXI

moneypenny2k wrote: »

I'd agree wholeheartedly with this. I've always found FD pretty darn good. Even when I got myself in a spot of bother a few years back. It's why I've stayed with them for over 15 years. No mean feat for me. I hope you get it sorted. Let us know what happens

I wouldn't disagree, their customer service was spot-on for the two weeks I've been with them. It's just beyond me how and why they are doing this to me - The repercussions from this for my banking, finances and family could be terrible.

I can deal with all of this, the one thing I'm struggling with though is the fact they came to me!!

Anyway, thanks for your reply, much appreciated

TFD_2

Have a search on here - it's not the first time a bank has withdrawn funding after a short period of time - sometimes days, sometimes weeks. The problem is they are entitled to do this, so it'll be hard to argue.

If their risk department deem you to be a potential defaulter, then they won't lend you money, despite the customer service implications.

I would say it's worth getting to the bottom of the reasons though... I had Barclaycard try something similar to me - they issued me with an account with a £4K limit, and wrote to me before the card arrived saying they reviewed my account and were cancelling it. I managed to speak to some helpful people on the phone who couldn't understand the reason for this, and reversed that decision, but I think it was more luck and a blag that I managed that.

TFD_2

And further to the earlier points, FD's customer service is great - when they want you as a customer.

Many years ago when I banked with them, they cancelled my Switch card without telling me - I only found out when I went to buy something and the PDQ machine told the shop to withold the card! Very embarassing as I knew nothing about this. They got very arsey with me, and made it clear they wanted me to take my banking elsewhere. I came to an agreement to repay my borrowing - OD, CC, loan, which was fair enough. But as you're asking for them to leave a credit line open that you haven't already used, I don't think you have a hope in hell.

WelshRarebit

Sounds like typical FD customer service to me. In recent years FD have become an elitist bank who think they are above everyone else. The fact that they feel justified in charging people £10 a month unless you earn over £23.3k per year or keep £1500 knocking around in non interest bearing current account says it all really. If you are going to pay a bank £10 a month at least go to one where you get some package deal in return for it. FD give you diddly sqwat for taking your £10!! They may as well just rebrand themselves as the private banking arm of HSBC.

I used to bank with FD and for the time I had a good job working in London they couldn't do enough for me. The moment I got made redundant and had to take a cut in salary they just treated me like I was some 2nd class citizen and basically made me feel like they didn't want me as a customer as I wasn't earning enough money for their liking.

Luckily I had the privilege of telling them where to stick their bank account before they got the chance to ditch me

Them pulling the plug on you is probably a blessing in disguise. Take you money elsewhere and don't look back!!

noh

The fact that they feel justified in charging people £10 a month unless you earn over £23.3k per year or keep £1500 knocking around in non interest bearing current account says it all really

Or just keep £1 in a First Direct savings account to avoid the fee.

TFD_2

WelshRarebit wrote: »

Sounds like typical FD customer service to me. In recent years FD have become an elitist bank who think they are above everyone else. The fact that they feel justified in charging people £10 a month unless you earn over £23.3k per year or keep £1500 knocking around in non interest bearing current account says it all really. If you are going to pay a bank £10 a month at least go to one where you get some package deal in return for it. FD give you diddly sqwat for taking your £10!! They may as well just rebrand themselves as the private banking arm of HSBC.

Hardly elitist to target customers earning around the average wage upwards. They don't want low paid customers, and are honest about it... seems fair to me.