Bank won't open a simple current account without closing another (in another bank)?

Archi_Bald

inca996 wrote: »

BTW, they said 'applying again will be a fraud'. How about that?

That's ridiculous.

InsideInsurance

Applying again is not fraud however it may trigger an investigation by the counter-fraud department. Of cause if everything matches up and subject to what notes had been put on the first application by the local branch then it'd be waived through (though it can take extra time)

henm2

HSBC have a no dual banking policy for personal current accounts. That means they will not open a current account with them if you maintain a personal current account at another bank or are not willing to switch your main current account to them. They expect you to have your main income wage/pension paid into the HSBC account and using the new faster switch service transfer all direct debits and standings from your existing bank to the new HSBC account.

Lith

henm2 wrote: »

HSBC have a no dual banking policy for personal current accounts. That means they will not open a current account with them if you maintain a personal current account at another bank or are not willing to switch your main current account to them. They expect you to have your main income wage/pension paid into the HSBC account and using the new faster switch service transfer all direct debits and standings from your existing bank to the new HSBC account.

Where is that policy in writing? lol pathetic HSBC


it's my main bank but i have 5 other accounts 'Elsewhere' and that's none of there business...

TurnUpForTheBooks_2

HSBC have a no dual banking policy for personal current accounts.

Why should that be tolerated? We all know that no bank in the UK can be trusted so we all need back up bank accounts so that we never become beholden to any particular one of these loser organisations. I can say "loser" because they are the biggest losers of all our money that the world has ever seen. No exceptions.

So why is it that HSBC are not closing existing customer accounts where they know of multiple personal banking relationships? Consider that and it begins to look more and more like a false objection at point of sale in some branches, doesn't it? The real reason is that they are attempting to cherry pick higher net worth/higher income individuals perhaps?

And the warning about fraud? Sounds to me like an improper use of personal data. If individual branch managers have the authority to decide who they accept and who they don't then it is an inconsistency if the decision is influenced by the irrelevance of a central computer recorded decision of another branch.

Nah ... my experience of HSBC branch managers is that they have a disposition towards being a collection of jumped up little hitlers so human interactions are always best avoided :rotfl:

jamesd

It can be tolerated because banks are allowed to choose who to do business with. That includes cherry picking higher net worth customers if they want to.

HSBC and First Direct are known to close existing current accounts for a range of reasons involving lawful activities that they dislike, sometimes contrary to the T&C, sometimes not.

innovate

henm2 wrote: »

HSBC have a no dual banking policy for personal current accounts. That means they will not open a current account with them if you maintain a personal current account at another bank or are not willing to switch your main current account to them. They expect you to have your main income wage/pension paid into the HSBC account and using the new faster switch service transfer all direct debits and standings from your existing bank to the new HSBC account.

Must be recent policy since when I got my account there a couple of years ago I already had at least 10 current accounts elsewhere, incl one at their own FD. But as has already been asked, where is that policy in writing, and why do HSBC think this would be welcome with customers? Why would they be arrogant enough to think they always have everything a customer wants? Incredible.

BMN

I doesn't have to be a written policy. In fact it's not even a policy for customers to worry about, it's an internal one.

Also, customers want branch/bank managers to be able to make local decisions... but if it's an unfavourable one then it's a different story. Banks can never win.

innovate

BMN wrote: »

In fact it's not even a policy for customers to worry about, it's an internal one.

I beg to disagree on that one. If their policy is that customers must not hold other current accounts elsewhere, they should come clean and put it right at the top of their application form so people who aren't interested in placing all their eggs into one basket don't need to waste their time by going through an application process that will fail.

It's so unbelievably arrogant for any bank to think they should need to restrict consumer choice in that way. The ramifications of this policy would be far-ranging because if it was down to HSBC, people would be denied other products, such as ISAs and plain savings accounts, Regular Savers and Mortgages that pre-req a current account with the same bank. I know HSBC like to give you some drivel about "all your money under the same roof" but who in their right mind would actually appreciate such a narrow selection, and the ability of a single bank to snoop all the way through their financial affairs?

I shall wait with baited breath for them to tell me I can't have a current account with them any longer since I also have others elsewhere.

I know they can decide who they do business with but you don't attract customers by telling your customers and prospects that they aren't allowed to mix and match. That's a completely ridiculous business strategy.

henm2

jamesd wrote: »

It can be tolerated because banks are allowed to choose who to do business with. That includes cherry picking higher net worth customers if they want to.

HSBC and First Direct are known to close existing current accounts for a range of reasons involving lawful activities that they dislike, sometimes contrary to the T&C, sometimes not.

HSBC's no dual banking policy is as far as I know an internal policy and is not in their T & Cs issued to customers.
You are right about the cherry picking. HSBC is particularly interested in customers who would qualify for their Premier service (one of the ways of qualifying is minimum savings and investments with HSBC of £50,000.)
Also following their very heavy fine last year by the USA of $1.9 billion they have drastically strengthened their anti moneylaundering (AML)procedures worldwide and as a consequence are beginning to close some personal accounts with links to countries not meeting international minimum AML standards or have transactions which appear to them to be irregular going through accounts (e.g main current accounts not having typical wage/pension payments in and usual bills, small cash payments,shopping transactions going out and have strange large cash lump sums in and out, unusual faster payment transactions etc)