HSBC shutting my account, no info given???

BigCraigJohn

Please move this post if there is a better place.

Basically out of the blue had a letter from them telling me my account will be shut in 2 months.

I suspect it is either the fact I am using it for business or that I never get charged for being overdrawn despite being overdrawn many times in the month and them still making payments(account back in credit by end of day). I shut my business account with them about 10 months ago as it was costing a fortune and rarely used.
I possibly make 10-20 credits a day to my account from paypal and debit 5-20 payments a day mad of direct debits which are paypal bank funded transactions and debit card so fair to say I'm getting my moneys worth.

My gut feeling is that they are making no money off me and I'm getting a lot for my money(or lack of).

Its annoying as they upgraded my account to a better one without my request a few months back so I guess I got a false sense of security.

Is there even any point me trying to appeal this or should I just get on and look for a new account?

Are there any cheap business accounts?(can't be with lloyds, barclays or hsbc). Or accounts that maybe would not mind having a lot of transactions. I think I might have to resign myself to the fact its going to cost me and that I'm only going to get the free banking if I get loans, cards, mortgages, insurance etc with them.

FireWyrm

It is entirely against banking terms and conditions to use a private account for business purposes. This is why they are shutting it down. The odd payment from paypal would not raise eyebrows, many people sell the odd thing or two here and there, but you are making dozens of business transactions a month. The bank are well within their rights here.

The bad news is that this is likely to dog you wherever you go now.

BigCraigJohn

FireWyrm wrote: »

It is entirely against banking terms and conditions to use a private account for business purposes.

Are you sure about this?, I'm pretty sure there is nothing regarding this and I have been clear with them and they knew my intentions when shutting the business account down.

Are you saying this is will go on my credit record and will make getting a bank account in the future pretty much impossible?. If that is the case I guess I have to at least appeal it. Surely a warning letter rather than outright suspension.

I can't be the only person not willing to pay extortionate fees for an account that does little different to a free account.

andyfromotley

No doubt they are within their rights but i'm kind of surprised that they just didn't write and tell you that you needed a business account.

The business aside I doubt very much that its because they didn't make any money out of you in charges, banks don't really make money off anyone who runs their account in credit. I would keep an eye via noodle to see if any sort of CIFAS marker appears which could cause you difficulties.

I would appeal if thats open to you, what do you have to lose?

BigCraigJohn

I guess so.
I might ask if maybe I could re open the business account.
The problem is my credit history is not great, clean for the last 5 or so years but pretty poor for the 6th so I think thats going to prevent me getting an account.

I'm worried though about what FireWyrm said about it dogging me. I had not even thought about this but does it go on my credit report that it was closed?

FireWyrm

BigCraigJohn wrote: »

Are you sure about this?, I'm pretty sure there is nothing regarding this and I have been clear with them and they knew my intentions when shutting the business account down.

If you are a sole trader then using a personal account is not illegal per-se. If you are a limited company, then a business account is required.

Just because it isnt illegal doesnt mean that the bank has to like it. In this case, you will probably find that they are hiding behind the AML laws. They "think" you might be laundering money, therefore, you are, therefore, they are not taking any chances, goodbye.

Yes, it will dog you going forwards. If they have canned your account under AML, you will find it difficult to open anything other than the most basic account elsewhere and may find any other account you do open is promptly shut down again.

I can't be the only person not willing to pay extortionate fees for an account that does little different to a free account.

That as may be. Unfortunately, they hold all the cards and you need a bank account for almost everything these days.

BigCraigJohn

Ok well I can make do with a basic account. As long as I have an account. If I remember right I started with a hsbc basic account which they upgraded to a business account.

I'm going to speak to them anyway, I've been there 20 years and my family have banked with them for 50 odd years +.

I'll plead stupid and see if they would consider reopening the business account, that is actually what I was. There is no fraud whatsoever and I'm happy to prove anything, I'm a sole trader and all correctly registered with HMRS etc.

FireWyrm

BigCraigJohn wrote: »

I'll plead stupid and see if they would consider reopening the business account, that is actually what I was.

It's worth a shot I guess

There is no fraud whatsoever and I'm happy to prove anything, I'm a sole trader and all correctly registered with HMRS etc.

Dont be suprised if you get a 'computer says no' response because when it comes to AML, banking staff are as in the dark as you are and just as powerless. These things are applied way above their paygrade. If they just decided to shut down the account, then you may be in with a chance. If they did it under AML, you have no chance of reversing the decision.

BigCraigJohn

Yes I know exactly what you mean about the computer says no thing, becoming more and more common. Try dealing with Ebay, thats fun. You almost have to get your story on Watchdog to speak to anyone with authority to actually do anything.
I won't waste my time going in hsbc branch because all they can do is pay in/out and give you a balance. On occasion the manager comes out and tries to sell you something.