HSBC Application

xjamiex

I applied for a credit card with HSBC on 3rd December. I had no acknowledgement from them and heard nothing further, although later in the month I noticed that they'd done credit file searches the same day. By the beginning of January, I was a bit concerned about this and so I called them. The person I spoke to said that she could see the application and she'd add a note asking the team to progress it. 

On 11th January I received a text from HSBC saying 'Hi, we haven't received your ID and address documents yet' and asking me to follow a link to an online ID verification service. I thought this was odd because they had made no contact with me up to that point and had never asked for this information. After making some checks to satisfy myself that this SMS was legit, I followed the link and this took me to the HooYu system where I was meant to take a picture of myself and my ID. 

I know various institutions use HooYu for this purpose, but they shouldn't. If you were looking to give customers confidence that you treat their privacy and data security seriously, then this is NOT the way to do it. It's appallingly shonky and repeatedly failed to work correctly. I did eventually manage to complete the process, only to get another SMS two days later asking for the same thing again. So I did it again. No more texts.

This had spooked me a bit, so I went into a branch a week or so later to ask if they had everything they needed. The guy I spoke to looked on the system and seemed a bit perplexed by whatever was on there, but eventually said that he could see that they had received the ID confirmation so there was nothing else I needed to do.

On 28th January, having still heard nothing, I wrote to HSBC with a more detailed account of the above, asking for an update and an explanation. They have not had the courtesy to acknowledge or reply to this.

This all coincided (roughly) with me finding it strangely difficult to get approved for a not very expensive SIM contract, although that did get resolved after a bit of pushing. I was not aware of any adverse indications on my credit files - no late payments or defaults, no issues with my address or any financial associates, so thought I'd better check in case there was something going on that I didn't know about. I looked at all my credit files and there were no problems with any of them. I have various live accounts, including a credit card and a mortgage, all of which have been paid on time, every time. So I also sent SARs to CIFAS, National Hunter, and Synectics. Nothing adverse flagged on any of those files either. 

Interestingly, HSBC lodged an entry with National Hunter on 3rd December showing my application as 'accepted'

Prior to this, I hadn't needed to apply for any credit for about three years, so perhaps the problem is that I've just not been playing the game properly and the algorithms see this as a higher risk. I spoke to a friend who works in the industry, and he said that the banks are extremely jittery about credit cards at the moment because of the amount of bad debt they need to provide for.

What should I do with HSBC now? How much chasing is reasonable, and is this just normal for them? Because I consider the service to be so poor, I thought about pursuing it with the Financial Ombudsman. It seems that this is only possible if an institution fails to respond to a complaint for eight weeks. I work in another regulated industry, and if I told a customer that I would lose my job...

MorningcoffeeIV

xjamiex said:

I thought about pursuing it with the Financial Ombudsman. It seems that this is only possible if an institution fails to respond to a complaint for eight weeks. 

Not true.

You can take a complaint to FOS if you disagree with the outcome.  However, this isn't something that is going to merit any FOS involvement.

Take your business elsewhere.

adamp87

Forgive me but I’m a bit confused (as I’m sure you are), have they opened an account for you or not? Is this still ongoing or an application still?

Agree it seems ridiculous I’d either call them and ask to speak to complaints and get an answer or email one anyway. 

You say you’ve written I’m quite surprised they’ve not responded (I’d suggest an email in future usually get a confirmation receipt from banks) - but bring this up too 

Reading your post it appears they’ve got your ID now but you are no closer to actually knowing if you have an account or not?

I’d agree about going elsewhere but they’ve done a credit check and have your ID now might as well see what the outcome is. But terrible customer service.

born_again

Clearly asking for further info means some of you data did not match up. So could be electoral roll data. Or other data asked for. As most cases are auto approved. 

So I would check that data is correct. 👍

eskbanker

xjamiex said:

What should I do with HSBC now? How much chasing is reasonable, and is this just normal for them? Because I consider the service to be so poor, I thought about pursuing it with the Financial Ombudsman. It seems that this is only possible if an institution fails to respond to a complaint for eight weeks.

But have you actually logged a formal complaint with HSBC about that poor service?  It's only after that's gone through its lifecycle that you can escalate to FOS, either by virtue of receiving a final response you're unhappy with or timing out after eight weeks.

MalMonroe

I would definitely take my business elsewhere and raise a complaint - prior to going to the FOS because you'll need to give HSBC time to respond to your complaint anyway, as eskbanker says above.

I have disliked HSBC and their practices since they refused to allow me to have a student bank account many moons ago when I was a mature student enrolling onto a full time undergrad uni course. I asked why. Check your credit report was the answer. Barclays took me on with no problem whatsoever, gave me a debit card and credit card and I never looked back. There was nothing wrong with my credit report.

HSBC then had the plain cheek (!) (I know they were totally unaware but it really annoyed me!) - to accept my daughter for a student account complete with debit and credit cards - when she had barely any credit history as an 18 year old - a year later. 

I wouldn't give them the time of day. That's just my story but your story does not endear them to me either.

xjamiex

eskbanker said:

xjamiex said:

What should I do with HSBC now? How much chasing is reasonable, and is this just normal for them? Because I consider the service to be so poor, I thought about pursuing it with the Financial Ombudsman. It seems that this is only possible if an institution fails to respond to a complaint for eight weeks.

But have you actually logged a formal complaint with HSBC about that poor service?  It's only after that's gone through its lifecycle that you can escalate to FOS, either by virtue of receiving a final response you're unhappy with or timing out after eight weeks.

I would say that I have made a complaint. I have written to them detailing my displeasure and my concerns, and asked them to respond to me. I don't think it's necessary for the letter to be specifically titled 'Complaint'.

Eight weeks is ridiculously lax, but I'll write to them again and advise that it will be escalated eight weeks after the date they will have received it, based on the proof of posting, if they don't reply satisfactorily.

xjamiex

born_again said:

Clearly asking for further info means some of you data did not match up. So could be electoral roll data. Or other data asked for. As most cases are auto approved. 

So I would check that data is correct. 👍

I think it was auto approved, at least based on the 'accepted' record HSBC lodged with National Hunter on the date I applied. There are literally no issues with any of my file data. I have been through it all top to bottom, including with the fraud agencies. Consistent electoral roll record for 17 years at the same address.

They are just completely incompetent.

xjamiex

MorningcoffeeIV said:

xjamiex said:

I thought about pursuing it with the Financial Ombudsman. It seems that this is only possible if an institution fails to respond to a complaint for eight weeks. 

Not true.

You can take a complaint to FOS if you disagree with the outcome.  However, this isn't something that is going to merit any FOS involvement.

Take your business elsewhere.

I think you're probably right. It shouldn't be acceptable, but ultimately the banks have all the power and they know it. I don't need the facility, so fortunately I can just write the experience (and HSBC) off. But they shouldn't be allowed to mess with people's files and data and behave disingenuously.

born_again

xjamiex said:

MorningcoffeeIV said:

xjamiex said:

I thought about pursuing it with the Financial Ombudsman. It seems that this is only possible if an institution fails to respond to a complaint for eight weeks. 

Not true.

You can take a complaint to FOS if you disagree with the outcome.  However, this isn't something that is going to merit any FOS involvement.

Take your business elsewhere.

I think you're probably right. It shouldn't be acceptable, but ultimately the banks have all the power and they know it. I don't need the facility, so fortunately I can just write the experience (and HSBC) off. But they shouldn't be allowed to mess with people's files and data and behave disingenuously.

FOS definitely will not do anything about internal process & time taken to process applications.

As they depend on the amount of applications received. Due to finite number of staff to process them.

cymruchris

I've recently placed a 'snail mail' complaint to HSBC around their service. I know it's been received, so I'll be interested what their reply is when it comes. I do like HSBC for several reasons, but their service levels aren't one of them.

If I were in your position, I'd write a complaint outlining the timeline, and emphasising the poor communication and repeated requests for the same information and see what their response is.

The address is on their website under 'contact us'.