HSBC Account shutdown post 'review'...

taztheman

I moved to ME in summer 2019. As soon as i changed my address to international (i now regret that), HSBC wanted a 'review' of the account. This review was never completed i.e. it started in Feb/Mar 2020 then additional info was requested which i needed to gather. But we never were able to arrange a suitable time (time differences etc.). I stopped receiving calls by end of 2020 and thought the matter was settled. Cut to yesterday, i noticed my account was suspended on 30/06/21 (i cant login at all). Apparently there was an online banking letter/message (which i dont check as it just doesn't stand out when you login) in April 2021 which confirmed that my account will be closed on the above date as this is the 'review' decision. They say they have dispatched the closing amount check to my international address.

Questions
* Is there anything i can do to get the account reopened as i still used to use it somewhat (the customer service agent said that the decision appears to have been made and nothing can be done now)
* I asked them to consider transferring me the money instead of sending the cheque, as none of the posts/cheques have ever arrived here from the UK in my time here (the postal system is non existent here except for DHL and the likes)
* Are there any alternate ways of opening and having a UK bank account, i can use a forwarding address of friends/relatives if i have to, so please suggest options.

 

Sandtree

The matter was settled, you failed to provide sufficient information to meet the Know Your Customer requirements and so they closed the account. Having gone through the process recently for our business account I was surprised that they were more accommodating with many aspects given the difficulties of getting certified copies of documents in lockdown etc.

Only HSBC can tell you if they'd consider reopening the account if you now engaged with the KYC checks but I suspect they'll say you had your chances.

They'll almost certainly insist on a cheque sent to the registered address. KYC is a key part of anti-money laundering measures and so for someone who's failed to convince them of their identity they're not going to just wire the money to some random other account.

Most UK banks require you to be resident in the UK, at least at the time of opening. Some do have "international" operations, often based in the channel islands or such (HSBC Ex-Pat is in Jersey)

GeordieGeorge

As above, it seems unlikely that they’ll change their mind; HSBC were fined billions of pounds for failing to spot money launderers only a few years ago, so they are very cautious now.

There is no harm in asking, so you may as well, but you need to engage properly with them, and make sure that you do find the time to get them what they need if they agree to take another look.

eskbanker

Banks need to be confident that they can communicate with their customers, especially in circumstances such as debt recovery, for example, so an overseas customer who is effectively uncontactable by phone, doesn't receive post and who doesn't access online messages is a risk they're unlikely to accept....

taztheman

actually they cancelled some previously arranged appointments however due to time differences and family health issues, i was not able to commit. Once they'd gone quiet, i forgot about the whole thing. Anyway, i have written to them as advised, let see what comes back. 

taztheman

I have a response from them, the summary of which is that they could not get hold of me to conduct another review in January 2021 (a review was already done in 2020). Apparently they wrote to me in Apr 2021 advising of their decision of account closure by end of June 2021. Obviously i was unaware of this all this due to the two things:

1) i was not reading the online notifications when used to log in the HSBC account. Hence i was completely unaware of what was unfolding since the last call i received from them HSBC was around Feb 2021.

2) There was no letter, text message or a call informing me of the HSBCs' decision of account closing.

Point 2 above is whats very disaapointing to me, that a decision such as an active account closure was not relayed verbally and they only relied upon me using the account notifications when you login to Internet banking. 

Is it worth taking this matter to Financial Ombudsman Service. I was stuck in another country between January and February 2021 due to covid flights closure so calling/receiving calls was not possible. Moreover they claim they posted letters out however none of the letters they posted to my address (overseas) have ever arrived, this includes the account closing balance cheque that they sent after account closure.
Quoting the above circumstances, is it worth pursuing this with FOS as the bank has drawn a line under this matter. Has FOS the power to force a bank to reverse their (seemingly irreversible) decision. Assuming that FOS sees above circumstances as exceptional?  

eskbanker

You might persuade FOS that the bank acted unfairly and receive some compensation (many months later) but no, they can't force HSBC to reverse their decision, but even if they could, no ombudsman can compel a bank to continue a relationship with a customer they don't wish to keep, so there'd be nothing to stop them from conducting another review and choosing to close the account again....

IanManc

taztheman said:

I have a response from them, the summary of which is that they could not get hold of me to conduct another review in January 2021 (a review was already done in 2020). Apparently they wrote to me in Apr 2021 advising of their decision of account closure by end of June 2021. Obviously i was unaware of this all this due to the two things:

1) i was not reading the online notifications when used to log in the HSBC account. Hence i was completely unaware of what was unfolding since the last call i received from them HSBC was around Feb 2021.

2) There was no letter, text message or a call informing me of the HSBCs' decision of account closing.

Point 2 above is whats very disaapointing to me, that a decision such as an active account closure was not relayed verbally and they only relied upon me using the account notifications when you login to Internet banking. 

Is it worth taking this matter to Financial Ombudsman Service. I was stuck in another country between January and February 2021 due to covid flights closure so calling/receiving calls was not possible. Moreover they claim they posted letters out however none of the letters they posted to my address (overseas) have ever arrived, this includes the account closing balance cheque that they sent after account closure.
Quoting the above circumstances, is it worth pursuing this with FOS as the bank has drawn a line under this matter. Has FOS the power to force a bank to reverse their (seemingly irreversible) decision. Assuming that FOS sees above circumstances as exceptional?  

You chose not to read online notifications which were sent to you. You ignored the bank's communications. No it isn't worth taking it to the Ombudsman.

colsten

Why would you want to stick with a bank which treats you like that?

born_again

If you did I can't see it getting anywhere as back "I stopped receiving calls by end of 2020 and thought the matter was settled." FOS will take the view that you broke the chain of communication. By not responding to their requests for the required information. Banks will only chase you for so long than take the view that the customer no longer wants to bank with them, as such terminate the account.
You assumed that despite them wanting information, that as you had not given them it, that they would just go away and not bother. Sadly not. They just cut the accounts. FOS will back them on this as it is something ALL banks have to do. Have up to date information on their customers. 
Phones work all round the world. HSBC are a worldwide bank and have staff all over the world. How do you think they manage?

taztheman

@colsten , @IanManc, @born_again
Thank you all for your comments.

Opening a UK bank account whilst overseas is not possible (i don't think, happy to be corrected), as you would need a UK address. I am not a fan of HSBC as a bank, i just need 'a' bank to continue using for services in the UK, i.e. paying UK mobile phone bills, shopping (incl. online) etc. Hence, as much as its painful fighting this matter, it is easier in comparison, to opening a new UK bank account being a non-resident citizen (happy to be corrected on this)
.
I am not sure how credit report ratings work, i kept a very good credit record/score until now. In the current climate of covid and what not, I may survive overseas for 15 years or may be forced to pack up within a year and return to the UK. For the latter scenario, i would prefer to have a functioning/active credit record, which is why i am looking at options to resurrect what i can from this situation. I don't know how (or whether) not having a UK bank account will affect the credit history.

Not reading the notifications can amount to carelessness on my part in normal circumstances but here, there were trying to get hold of me in a time when i was stuck outside my current country of residence with wife and kids trapped in another. These weren't normal times. When i did manage to return to normality, they had decided to close of which i had no knowledge of, until the July payment for my mobile sim provider got declined. Had i known about the closure decision i would have picked this up and the matter would have been resolved. It is just that they relied on a notification alone for relaying the closure seems harsh (to me, naturally).