HSBC Charges for Charitable Accounts.

maggie126

Have just received the statements for the Charitable accounts we are running and indeed we have incurred charges.  I just rang HSBC ( I got through in less than a minute!!) to see if we can avoid these charges and contrary to Sophie Kings article on here on 2nd September there is no get out for charities even if you are registered with the Charities Commission.  I asked the man to provide feedback that they will be losing lots of charities on this account.  I will be visiting the other banks tomorrow to see who will take us on.

eskbanker

maggie126 said:

contrary to Sophie Kings article on here on 2nd September there is no get out for charities even if you are registered with the Charities Commission

If you mean https://www.moneysavingexpert.com/news/2021/09/thousands-of-hsbc-customers-to-be-affected-as-bank-reveals-chari/, I don't see anything there that suggests any sort of 'get out' for registered charities, other than getting out of HSBC and moving to another bank?

HobgoblinBT

Letters /emails were sent out at least 2 months prior to the charges period.  I know because I received one advising of new fees commencing in November.  Look for unopened Bank letters or check your email spam box to check.   

 

Having worked (now retired) for the Corporate Banking arm of a High Street bank and completed know your customer reviews for trusts and charities they are by far the most challenging class of customers to fully review. This is due to potentially having many people involved who all need to have due diligence carried out on them by the bank and some of whom are too busy to engage with the bank.  Many have high profile/politicians or other individuals who are deemed high risk due to them being open to corruption and possibly bribery.  (I feel sorry for any charities linked to Barry Gardiner MP).   

 

Due to recent bank kyc requirements trusts and charities are seen as high risk and also very likely to be loss making for the bank, especially if operated for free, so from the bank’s perspective justify a fee.  If you move your account elsewhere, the original bank will make less of a loss and save a considerable amount of work. I suspect that many banks will therefore be looking to reduce the number of charities and trusts on their books as part of their de-risking. 

 

This is probably not the answer you wanted or expected, and is in no way an official reply from a bank, but it is probably closer to the truth than you will get from official sources.
 

CafCash, the charity bank may be able to help you, but they do charge fees.  Good luck in your search for a replacement charity account.

penners324

So much for banks claims about corporate responsibility