Urgent help/advice needed! HSBC declined my BBL unfairly.

Mary_Faerie

Does anyone have any experience of getting a Bounce Back loan from HSBC as a sole trader with personal account only (post 30th September).

I believe HSBC refused my application for a business Bounce Back Loan in an unfair, unclear and deceptive way. I was informed I was declined by an email 10th March, which stated, "Unfortunately, we’re unable to progress your application as you don’t meet the criteria to apply for a BBL. This is because your personal current account is not being used for your business."

I made a complaint as every single penny I make from my business goes into this account. Directly from my clients. And I've used the account in this manner for 17 years. Therefore the reason given for refusal was incorrect. I asked HSBC to review my application.

I had a reply to my complaint on 11th March, from a Mr. Shaun James, Customer Advocate, stating, "I can confirm that we have reviewed your application and unfortunately, we are unable to agree to your request as you do not meet the criteria."

No further information was given. No clear statement of what the criteria are. No clarity on what they even mean by 'criteria'. And no specific of which way/ways I do not meet them.

On the HSBC website where the loan can be applied for it gives the following information, and nothing more;

"Our Bounce Back Loans are currently only available to existing eligible HSBC UK customers."

"You can apply for a loan if:

You have an existing Business, Charity or Community Account with HSBC UK, or you are an eligible sole trader using an existing HSBC UK Personal, First Direct Account or HSBC Kinetic Current Account.

Your business is based in the UK

Your business has been negatively affected by Coronavirus

Your business was operating on 1 March 2020

You have applied before the scheme ends, on 31 March 2021"

"Do I need to be an HSBC UK customer to apply for a Bounce Back Loan?

Bounce Back Loans are only available to those who:

Have an existing Business Current Account or Business Feeder Account with HSBC UK

Have an application in progress for Business Current Account or Business Feeder Account with HSBC UK which was submitted before 9am on the 30th September 2020

Are eligible sole traders using their existing HSBC UK Personal or First Direct Account."

I am an existing customer of 27 years. I am a sole trader. I am eligible for the loan as far as the goverment are concerned. And I use my Personal Advance account for my business. Therefore I believe my application should have been successful.

My issue is not only that it was not successful, but also the lack of transparency around my being declined. I meet all the criteria given on the HSBC website but they inform me I do not meet the criteria. My bank should't be able to deny me access to the help I'm entitled to from a government scheme that will keep me in business. A few months ago anyone at all could open a feeder account and apply with no prior relationship to HSBC. Now I'm excluded after 17 years of paying in all my earnings! And the reason I'm discriminated against is purposefully veiled in jargon. This is particularly upsetting as elsewhere on the same webpage HSBC state;

"Our commitments to you under the scheme:

provide you with information you need in relation to your loan in a way which is clear, fair and not misleading"

In my opinion HSBC have not been clear or fair and are utterly misleading.

The only thing I can think of that might be a 'criterea' is not just 'using' my personal account but using it for the whole of my day to day business banking, which in the tax year 18-19 (which is the tax return requested as evidence of income) I did not; I forwarded money from my HSBC account to another account from which I paid for things. But if this was the case then that requirement should have been clearly stated on the website. And it should have been clearly stated as reason for refusal. And in any case it's still wholly unfair as new customers were allowed to open accounts to apply for BBLs up to the end of September, and, in fact, throughout the time the BBL loans have existed, right back to the turn of the tax year (6/4/21), I HAVE done all my business banking through HSBC; my only business income has been SEISS and my only expenditure business insurance which have both gone through my HSBC account as I've had no work due to the pandemic.

So no matter what, I believe I have been unfairly treated, not given clear answers, and discriminated against.

If anyone has any advice on any way I could achieve a successful application I'd be so grateful for any help. I'm at panic stations as the scheme ends so soon. I've complained to the financial ombudsam but that's not really any practical solution as the scheme will likely end before I hear back.

Many thanks everyone!

Thrugelmir

Have an existing Business Current Account 

If you've been using a personal account for business banking then you fail to meet the criteria. Presumably you did so to avoid paying banking charges.  

Mary_Faerie

Thrugelmir said:

Have an existing Business Current Account 

If you've been using a personal account for business banking then you fail to meet the criteria. Presumably you did so to avoid paying banking charges.  

But on their webite, on the BBL page, as outlined above, they state this means I can apply - I'm not required to have a business account.

Thrugelmir

Mary_Faerie said:

Thrugelmir said:

Have an existing Business Current Account 

If you've been using a personal account for business banking then you fail to meet the criteria. Presumably you did so to avoid paying banking charges.  

But on their webite, on the BBL page, as outlined above, they state this means I can apply - I'm not required to have a business account.

You were in breach of their account term and conditions. 

JamoLew

Mary_Faerie said:

"Our Bounce Back Loans are currently only available to existing eligible HSBC UK customers."

"You can apply for a loan if:

You have an existing Business, Charity or Community Account with HSBC UK, or you are an eligible sole trader using an existing HSBC UK Personal, First Direct Account or HSBC Kinetic Current Account.

Your business is based in the UK

Your business has been negatively affected by Coronavirus

Your business was operating on 1 March 2020

You have applied before the scheme ends, on 31 March 2021"

"Do I need to be an HSBC UK customer to apply for a Bounce Back Loan?

Bounce Back Loans are only available to those who:

Have an existing Business Current Account or Business Feeder Account with HSBC UK

Have an application in progress for Business Current Account or Business Feeder Account with HSBC UK which was submitted before 9am on the 30th September 2020

For some reason they arent judging you as eligible

Probably this bit - they are saying you are eligible by virtue of having a Current Account BUT must have applied for a Business Account before this date (I think)

Mary_Faerie

No because I only recently applied. A  business account is not a requirement - says the info on the website. Only being an existing customer.

Thrugelmir said:

Mary_Faerie said:

Thrugelmir said:

Have an existing Business Current Account 

If you've been using a personal account for business banking then you fail to meet the criteria. Presumably you did so to avoid paying banking charges.  

But on their webite, on the BBL page, as outlined above, they state this means I can apply - I'm not required to have a business account.

Did you do this. 

"Have an application in progress for Business Current Account or Business Feeder Account with HSBC UK which was submitted before 9am on the 30th September 2020"

JamoLew

They will ONLY pay into a business account

Your current account makes you eligible to apply

But you need to have applied for a Business Account for it to be paid into

Mary_Faerie

JamoLew said:

Mary_Faerie said:

"Our Bounce Back Loans are currently only available to existing eligible HSBC UK customers."

"You can apply for a loan if:

You have an existing Business, Charity or Community Account with HSBC UK, or you are an eligible sole trader using an existing HSBC UK Personal, First Direct Account or HSBC Kinetic Current Account.

Your business is based in the UK

Your business has been negatively affected by Coronavirus

Your business was operating on 1 March 2020

You have applied before the scheme ends, on 31 March 2021"

"Do I need to be an HSBC UK customer to apply for a Bounce Back Loan?

Bounce Back Loans are only available to those who:

Have an existing Business Current Account or Business Feeder Account with HSBC UK

Have an application in progress for Business Current Account or Business Feeder Account with HSBC UK which was submitted before 9am on the 30th September 2020

For some reason they arent judging you as eligible

Probably this bit - they are saying you are eligible by virtue of having a Current Account BUT must have applied for a Business Account before this date (I think)

That's a date for business accounts for new customers. You can't open a business account to apply for a BBL after that date.

The website says this:

You can apply for a loan if:

1. You have an existing Business, Charity or Community Account with HSBC UK, or you are an eligible sole trader using an existing HSBC UK Personal, First Direct Account or HSBC Kinetic Current Account.
2. Your business is based in the UK
3. Your business has been negatively affected by Coronavirus
4. Your business was operating on 1 March 2020
5. You have applied before the scheme ends, on 31 March 2021

So I tick yes to all. Yes the murky word seems to be 'eligible'. But on the same page they descride 'ineligible' businesses as banks etc. So it's shady at best and I'd say outright deceptive. My business DOES use my current account so I should qualify

[Deleted User]

Mary_Faerie said:

JamoLew said:

Mary_Faerie said:

"Our Bounce Back Loans are currently only available to existing eligible HSBC UK customers."

"You can apply for a loan if:

You have an existing Business, Charity or Community Account with HSBC UK, or you are an eligible sole trader using an existing HSBC UK Personal, First Direct Account or HSBC Kinetic Current Account.

Your business is based in the UK

Your business has been negatively affected by Coronavirus

Your business was operating on 1 March 2020

You have applied before the scheme ends, on 31 March 2021"

"Do I need to be an HSBC UK customer to apply for a Bounce Back Loan?

Bounce Back Loans are only available to those who:

Have an existing Business Current Account or Business Feeder Account with HSBC UK

Have an application in progress for Business Current Account or Business Feeder Account with HSBC UK which was submitted before 9am on the 30th September 2020

For some reason they arent judging you as eligible

Probably this bit - they are saying you are eligible by virtue of having a Current Account BUT must have applied for a Business Account before this date (I think)

That's a date for business accounts for new customers. You can't open a business account to apply for a BBL after that date.

The website says this:

You can apply for a loan if:

1. You have an existing Business, Charity or Community Account with HSBC UK, or you are an eligible sole trader using an existing HSBC UK Personal, First Direct Account or HSBC Kinetic Current Account.
2. Your business is based in the UK
3. Your business has been negatively affected by Coronavirus
4. Your business was operating on 1 March 2020
5. You have applied before the scheme ends, on 31 March 2021

So I tick yes to all. Yes the murky word seems to be 'eligible'. But on the same page they descride 'ineligible' businesses as banks etc. So it's shady at best and I'd say outright deceptive. My business DOES use my current account so I should qualify

 Only IF you had applied for a business account which you have not done 

Mary_Faerie

No! I don't need to have a business acccount!

You can apply for a loan if:

1. You have an existing Business, Charity or Community Account with HSBC UK, OR you are an eligible sole trader using an existing HSBC UK Personal, First Direct Account or HSBC Kinetic Current Account.

I am an eligible* sole trader using an existing HSBC current account -  *I am elligible for the government scheme. The issue seems to be HSBCs own internal eligibility meter - of which they have given no details, other than to say, 1. I do not use my account for business - which I do. And then 2. I do not meet the criteria (undefined nowhere other than on their website, which I meet).

MSE website states this:

"ILloyds and Bank of Scotland. As of 8 September 2020, the Competition and Markets Authority has now stopped Lloyds Bank and Bank of Scotland forcing small-business customers to open business accounts when applying for a bounce back loan."

So I'm presuming the same would apply to HSBC and all banks -they can't force an applicant to open or have a business account.

I do not need to have a business account!

Thanks everyone for answers so far!

Sorry... I don't understand how to use the quote tool properly, It just keep copying everyone's posts instead of just the one I'm replying to.

lisastevo

I am a sole trader and I bank with HSBC with a personal current account and I got a BBL no problem.