HSBC accnt closed after period abroad...?

markomarkovic

Hello all,

Just a query I have regarding my HSBC account. I recently spent about a year abroad, and during this time opened a foreign bank account or just used cash. I was unaware that the banks get a bit arsey if one doesn't actually use the account for anything for 6 months (I had no direct debits and nothing was coming in). They sent some letters to my house in the UK, but as I wasn't there, they just sat on the doormat.

The problem is that I still had a fairly hefty overdraft (1,750) overdraft left over from University. They have now shut down the account (well, they did it when I was still away) and have sold the debt onto a debt collection agency. TBH I'm a bit peeved - had I known that they needed some action, I would've simply put some money in from my foreign bank account.

SO my question is what to do next. Should I try and reason with HSBC? Alternatively, a friend advised me that them having sold it on to a debt collection agency is actually a good thing (?), as I can now offer to repay the debt on my terms (i.e. 20 pounds a month), and they have to accept. Is this true? If so, is there a template letter or something I can use? I'm not so bothered about my credit rating in the UK as I have good standing in other countries.

Also, do I actually need a 'basic bank account' in the UK? I mean I guess my credit rating is shot through so I could only get a basic account, but that is all I need... I perhaps don't even need that, as my employer here is happy to pay internationally, but that costs, and in any case I'd like a UK account just to be able to send/receive money between people here without paying and fees. I am right in thinking that they don't do a credit check for these, right?

Also, can I use a foreign address when opening up the basic account? I have hardly any letters here... only ones from HSBC really.

Best wishes to all, thanks so much for any answers,


Jack.

jjlandlord

markomarkovic wrote: »

had I known that they needed some action, I would've simply put some money in from my foreign bank account.

Who would have guessed that repayment of the debt was expected... Shocking!

Lith

Im surprised they closed the account, with an 'overdraft?!'

i would go in the branch and speak to the manager or whoever is in charges of accounts, (they had no right to close it) - even if someone says on this forum (it was a business decision) because by the looks of it, it doesn't seem like one.


(i also have a hsbc account with no Direct debits, but i put in 80 a month at the moment, (just to shut them up) - spending account.

Lokolo

Lith wrote: »

Im surprised they closed the account, with an 'overdraft?!'

i would go in the branch and speak to the manager or whoever is in charges of accounts, (they had no right to close it) - even if someone says on this forum (it was a business decision) because by the looks of it, it doesn't seem like one.


(i also have a hsbc account with no Direct debits, but i put in 80 a month at the moment, (just to shut them up) - spending account.

Why don't they?

Lith

well at the moment, we don't know how MUCH money is in the account.

if it was little then yea they can close it, but if its a lot surely that isn't right? (dont know the full story)

JuicyJesus

Lith wrote: »

well at the moment, we don't know how MUCH money is in the account.

if it was little then yea they can close it, but if its a lot surely that isn't right? (dont know the full story)

The account was overdrawn without any credits for a long time, or so the OP says. There was no money in the account. It was passed to a debt collection agency. All of this information was in the first post.

That aside, a bank can close your account for any reason they see fit, including for no reason at all, the same way you can close yours on a whim. Leaving your account overdrawn without any credits for upwards of six months, and leaving the country without leaving a forwarding address, seems to me to be a pretty excellent reason to close it. Getting arsey in a branch because you did such a thing would be absolutely delightfully pointless.

Lith

True:

Well in fairness yea, they can do that, not leaving an address as well.. thats just asking to be CLOSED,

markomarkovic

Hello,

Thanks for the interest in the thread.

I did in fact speak to the bank numerous time since they kept blocking my card (I used it a little bit when I first arrived), and I said I'd be out of country indefinitely, and gave my address. I guess they just didn't want to send any letters outside of the EU... I also gave an email address, which they never used, as well as a mobile phone number.

There was no money in the account - as I said, there was a hefty overdraft of 1750 on it. However, this was all agreed upon, and I was paying 10 pounds a month for the privilege. I never had any problems before.

As I wrote, I was just after advice on what to do now. Shall I write to the debt collecting agency and offer to pay it off bit by bit? Or would a letter to HSBC, asking to restore the overdraft, be a better idea?

Thanks for any advice that you can give me.


Jack.

izools

First thing you need to do is speak to HSBC and ask if the account "defaulted".

As it's a current account and not a credit card / loan, they won't have posted you a default notice, did you get a final demand from HSBC? If so, you'll have no choice but to communicate with the Debt Collection Agency, just set up a payment plan with them for what you can reasonably afford

KingElvis

As well as a default you may have a nice GAIN entry on your credit record.

I'm not suprised they closed it to be honest.

markomarkovic

Thanks izools, that's great advice. I'm not sure if they sent me a 'final demand', I'll have to go through the pile of unopened letters. That'll make for fun reading!

Can I ask, is it possible to suggest a payment plan of _anything_ i.e. 20 quid a month? Someone told me that I can state whatever I want, and they have to accept it. Is there a template letter that would allow me to do this somewhere?

I personally think it's a bit off that they wouldn't send me letters abroad, but I guess it's not the end of the world.

Thanks again for anyone who gave me advice! For those that simply criticised/commented, please spend less time on this forum and go for a walk.