Can HSBC do this?

HarriettPotter

A friend of mine has a current account and a credit card with HSBC. The credit card has around £1500 on it and the current account is around £900 in credit.

For some reason, HSBC have told my friend that he cannot have an account anymore as he doesnt pay his salary into the account. They have also said he cannot draw out his balance as he needs to pay his credit card?

Surely they can't do that?

HP

Debt_Free_Chick

This is one occasion where he needs to check the T&Cs for the account.

I strongly suspect that one of them requires payment of salary into the account, each month.

And that there will definitely be a clause which allows HSBC to take money out of one HSBC account in order to settle any debt on another HSBC account.

These two clauses are quite common - but he needs to check.

exel1966

A bank account is a privelage and not a right.

Sounds to me that the T&C's of the account state a minimum funding requirement which is quite commonplace nowadays. If you don't adhere to this some banks will charge you, others will close the account. Simple !!

YES, most credit cards can be settled by the bank taking the necessary funds from a current account if you hold one with the same bank. Again it will clearly state this in the T&c's which have been agreed to by accepting the card. This question comes up on here frequently. This course of action tends to be a last resort against a persistent non-payer/defaulter.

tom188

Is your friend up to date with their credit card payments?