Unable to open HSBC Premier account due to previous account closure?

PandaHamed

A couple of years ago, I got into a little financial trouble due to dissolution of my relationship and then the loss of my job, none of this was helped by Thames Water being useless and then HSBC.

With HSBC I relocated and I went in branch to update my address to ensure I get letters, all was good and then I got a letter stating I'd defaulted on my overdraft, I'll be honest, I forgot I had one and I set up a payment plan as soon as I got a new job sorted and paid it off within 6 months. I took the Default hit and that was that, or so I thought.

I'm due to come into a substantial amount of money due to a settlement, it's a significant amount of money that'll clear my minor debts and put me in a very good position for the rest of my life so I went to enquire about open an HSBC Premier account to be told that I couldn't open it as my previous account had been closed in by Default which took me by surprise as I asked to close the account once I'd paid off the debt and at no point was I told I'd be unable to open an account with HSBC in the future, especially one where the financial requirements are more than exceeded, I wanted to open a Premier account for the Mastercard World Elite Etihad Guest miles earning, I could open an account with a private bank and will just without the mileage earning potential.

I left the branch rather embarrassed and angry as I wasn't told at any point I wouldn't be able to open an account again in the future, in fact, I'd been told on the phone that once my debt was paid off they'd consider lending to me again as I'm in a good job and they didn't want to lose my custom although they never did take responsibility for the fact I didn't get warning letters, instead blaming the Royal Mail which was bizarre as I'd received all other mail.

Basically, HSBC doesn't appear to have been forthcoming with the actual status of what was happening, I asked for the account to be closed, I don't recall any letter saying they were closing the account and then left it, I take responsibility for not keeping on top of my overdraft and then leaving the account dormant but this is now bizarre.

Is there anything I can do, I presume this means I couldn't open a First Direct account either, I was hoping for the milage earnings but now I'm confused, embarrassed and annoyed. Is there anything I need to check to ensure that HSBC didn't stuff up anything else?

jonesMUFCforever

Have you checked your credit reports?
HSBC have every right to refuse to open an account for you - move on plenty of other banks with similar accounts - but check the CRA's first.

born_again

PandaHamed wrote: »

Is there anything I can do, I presume this means I couldn't open a First Direct account either, I was hoping for the milage earnings but now I'm confused, embarrassed and annoyed. Is there anything I need to check to ensure that HSBC didn't stuff up anything else?

Clearly HSBC do not want you as a customer. It could be as simple as you closed the account within 6 years, so they feel that given you did that there is not point starting again. So move on. No point in trying to argue the point with them.

While FD are part of the HSBC group. They work to their own criteria. So you might be OK. It would depend on how HSBC have reported the incident on your file.

PandaHamed

Yes, while the credit profile 'score' is down, the rest is in order.

What I meant and maybe didn't make clear is that I can't ever open an account with them again, I find it bizarre as I opted to close the account not them and this isn't a bog-standard account.

I don't know, maybe I expected differently but if not, I'll go elsewhere although I'd debate the similar accounts aspect with what I'm looking for specifically.

born_again

PandaHamed wrote: »

What I meant and maybe didn't make clear is that I can't ever open an account with them again, I find it bizarre as I opted to close the account not them and this isn't a bog-standard account.

Banks like any other company are free to choose who they want to take on as a customer. Clearly they no longer want you as a customer. Maybe there is something else that happened in your previous relationship with HSBC that means they no longer want to deal with you.

The only time they really do not have a choice is in relation to a basic bank account. Anything above that and they are free to do as they please.

Ben8282

If you have previously defaulted with a bank they probably don't want you as a customer again. Take your business elsewhere.

soulsaver

Maybe they didn't fancy anyone that could 'forget' they had a substantial overdaft?

Davy_Jones_II

Did you honestly forget that you had a substantial overdraft?

HSBC are a bit choosy about their Premier service, what condition were you looking to use to qualify?

I also US NatWest Black Private account and Coutts, both of which are decent, so you might want to check if you qualify for either of them.

Terry_Towelling

Given the substantial sum you are getting to set you up for the rest of your life, is a MasterCard offering a few airmiles really that much of a draw?

Given also, HSBC's failings, why would you even be considering a FD account, and, did HSBC really tell you (on the phone) that they'd consider lending to you because you were in a good job? What evidence of said, good job did they possess at that point to make this statement to you? Furthermore, why were they talking to you about lending when you were (presumably) enquiring about a new current account?

I think you could be right about Thames Water though.

Thrugelmir

PandaHamed wrote: »

but now I'm confused, embarrassed and annoyed.

Absolutely no need to feel that way. Just business. The bank doesn't want yours. A matter of once bitten twice shy.

EarthBoy

PandaHamed wrote: »

I'd been told on the phone that once my debt was paid off they'd consider lending to me again

That only means they'd think about it. To "consider" something is no guarantee that it would ever happen

Don't waste your time and energy trying to get HSBC to change their mind, just move on. There are plenty of other banks out there.