HSBC T&C changes 1 December 2015

Archi_Bald

There is a strange T&C change in the pipeline at HSBC

We’ve changed the “Payment information required from you” section in Clause 3 of the Terms to reflect the fact that if you want to make an Electronic Funds Transfer we will need to know the address of the person/organization you are paying.

https://www.hsbc.co.uk/content_static/en/pdfs/en/personal_banking_tcs_nov.pdf

They aren't saying why they need this information, or what the benefit of providing it will be to the account holder. I just hope HSBC will be the only bank with these additional requirements as there could be babylonic confusion if people get the addresses wrong.

Also, I don't understand why somebody needs to know my address when they make a payment to me. This additional requirement might suddenly make me a fan of cheques as I wouldn't always be happy to give my name, address, sort code and bank account number to people who might owe me money.

Kim_13

Sounds like it might be something designed to help prevent fraud/money laundering. Still think it's going a bit far though. While an employer/DWP/HMRC would have the address anyway, it removes a payment option where eBay is concerned. Good news for PayPal.

spenderdave

Does Electronic Funds Transfer include Faster Payments, the method most of us use when paying online? Does seem a little strange and in some cases you may well not actually have the chaps postal address.

Herbalus

Given that this pricing leaflet lists the charges for Electronic Funds Transfer as £20 or £30, I would assume that they don't categorise FPs as EFTs. Plus they've listed EFTs as "N/A" for online banking. It looks like an equivalent to CHAPS.

I highly doubt they mean that an address needs to be input for FPs. After all, that would mean that every other bank that's part of the FP system would need an extra box for that info, and that isn't something HSBC can unilaterally decide. Plus with all the hoo-hah about checking names as part of the authentication process for FPs, there's no way that addresses will become part of it.

Archi_Bald

Actually, the terms that get changed include a definition of Electronic Funds Transfer so the address might only be required for CHAPS payments. That's a bit of a relief.

Electronic Funds Transfer means a payment you make to someone else’s account through the Clearing House Automated Payment System (CHAPS) service

.

Herbalus wrote: »

I highly doubt they mean that an address needs to be input for FPs. After all, that would mean that every other bank that's part of the FP system would need an extra box for that info, and that isn't something HSBC can unilaterally decide.

That's only true if the data gets passed on to another bank. I wouldn't put it past HSBC to ask for data that they store for their own purposes. Also, you could argue the same for CHAPS payments.

DevCoder

It's to comply (more fully ) with fatf sr-vii requirement that all payments should have full remitter and beneficiary addresses. Most banks will be looking to comply with this.

JuicyJesus

krisdorey wrote: »

It's to comply (more fully ) with fatf sr-vii requirement that all payments should have full remitter and beneficiary addresses. Most banks will be looking to comply with this.

Yup, bang on. If your bank doesn't already ask for this information when you do a CHAPS payment or overseas payment, get ready for it to do so.