HSBC blocked basic bank account

cheeseontoasts

Hello, it’s my first time using this forum but I could really do with some advice

Yesterday my basic hsbc personal account was blocked. I’ve spoken to the account review team and they said they can’t tell me why the account is being reviewed or provide any timescales.

The only thing out of the ordinary this week is that HSBC tried to Redebit my account this week from a chargeback I made 6 months ago but when I spoke to the disputes team they said this was an error and they would arrange a refund (refund however is not processed yet due to said review) 

No huge payments into my account, no international transfers. I get my salary paid into the account, bills come out and sometimes there’s a bit of money being transferred from savings to my account or from my account to savings- nothing groundbreaking a couple of hundred max but accounts are in my name and it’s clear the money being moved is from my salary.

My dad did transfer me some money about a fortnight ago but this was only £500 and he’s transferred money previously for birthdays/Christmas etc…

I'm currently in the conveyancing purpose as my dad is gifting me the money to buy a 25% share of a shared ownership property but this money is still in his account (thankfully!) although I have made payments to the Housing association and my solicitor out of my account but these were only for £250 and £125 respectively so surely shouldn’t have flagged anything up.

The only other thing I can think of is that I’ve had to do 4 chargebacks in the last 12 months but each have has plenty of evidence supplied and only the most recent one has the company disputed but according to the review team this morning although they can’t tell me the reason for the review the dispute is a separate matter. 

my mental health isn’t great and I feel so unwell today with anxiety does anyone have any experience of this and what the likely timescales are? I’m really worried this is going to impact my house purchase 

BoGoF

4 chargebacks in 12 months? That may well be seen as excessive and the amount of work you are creating for them, they may well not want you as a customer anymore.

Don't think there's anything anyone can say to re-assure you and you will just need to wait till they get back to you but if it were me I would be considering alternative banking arrangements.

cheeseontoasts

 do appreciate that 4 seems a lot- it was just a string of bad luck unfortunately and like I said, only 1 of the companies has come back to dispute the chargeback so it’s not like they weren’t legitimate or anything.  

To be honest I’m absolutely fine with banking elsewhere, I was planning to close the account anyway due to the abysmal customer service and I have an account with Santander but I’m just worried that my other accounts can get frozen/closed if this one does. 

If they were transparent and said why they were reviewing and had some general timescales it would be a bit better but it’s so stressful not having any guidance at all. 

Shakin_Steve

Why do you have a basic bank account if you have accounts elsewhere? That could be the reason for them looking into it.

From Moneyhelper:

Your bank can close your account if you break the terms

Your bank might decide to close your account if you regularly fail to meet their terms and conditions. This could include:

• opening another UK bank account
  
• not using the account in over two years or moving abroad  
  
• using the account fraudulently
  
• being threatening, abusive or violent towards staff.
  

If this happens, your bank will give you at least two months’ notice. You can use this time to appeal if you don’t agree. See our how to complain guide for step-by-step help.

cheeseontoasts

I’ve only just opened the Santander account, with the view to leaving hsbc, sorry that bit wasn’t clear.

I have had a savings account open alongside for about 6 months though- I thought this was fine to have alongside a basic bank account although maybe I’m mistaken 

That’s the thing though, I have no notice, information or anything. I hadn’t had any correspondence at all about my account being blocked- It only became apparent when I contacted them because my card was declined and they informed me then. 

Shakin_Steve

cheeseontoasts said:

I’ve only just opened the Santander account, with gthe view to leaving hsbc, sorry that bit wasn’t clear.

I have had a savings account open alongside for about 6 months though- I thought this was fine to have alongside a basic bank account although maybe I’m mistaken 

That’s the thing though, I have no notice, information or anything. I hadn’t had any correspondence at all about my account being blocked- It only became apparent when I contacted them because my card was declined and they informed me then. 

This is the way it usually happens. There really isn't anything you can do but wait.

GrubbyGirl_2

Shakin_Steve said:

Your bank can close your account if you break the terms

Your bank might decide to close your account if you regularly fail to meet their terms and conditions. This could include:

• opening another UK bank account
  
• not using the account in over two years or moving abroad  
  
• using the account fraudulently
  
• being threatening, abusive or violent towards staff.
  

If this happens, your bank will give you at least two months’ notice. You can use this time to appeal if you don’t agree. See our how to complain guide for step-by-step help.

Wow, so if you're with HSBC you can't have a second current account?

MattMattMattUK

GrubbyGirl_2 said:

Shakin_Steve said:

Your bank can close your account if you break the terms

Your bank might decide to close your account if you regularly fail to meet their terms and conditions. This could include:

• opening another UK bank account
  
• not using the account in over two years or moving abroad  
  
• using the account fraudulently
  
• being threatening, abusive or violent towards staff.
  

If this happens, your bank will give you at least two months’ notice. You can use this time to appeal if you don’t agree. See our how to complain guide for step-by-step help.

Wow, so if you're with HSBC you can't have a second current account?

Nothing to do with HSBC, the Terms and Conditions on basic bank accounts require that it is your sole current account.

cheeseontoasts

HSBC have unblocked the account this morning- still a mystery why they blocked it in the first place but never mind! 

jameseonline

A few thoughts to what's been posted so far:

You have a "Basic" account, yet it seems a lot of money is flying around.

Several chargebacks.

Using money to buy property?

I think alarm bells are ringing with HSBC and probably rightly so.

As for having a Basic account in my experience it isn't suspect in itself, I applied for HSBC standard current account and they gave me a Basic account, card, pin everything, I later got the standard current account, so therefore had 2 accounts with HSBC at the same time, I tried to apply for their Regular Saver, got rejected, I had a call with HSBC they eventually told me to get rid of the basic account(even though I had their standard current account at the same time) I did then got their Regular Saver.

I'd say try getting HSBC's standard current account if you can, ditch basic because it seems to me you might not be using it for what it's meant for.

You seem to have at least 1 account elsewhere which you should probably use unless that's a basic too then I don't think I can really help further.

In short I feel you need a standard current account if you don't already 

cheeseontoasts

jameseonline said:

A few thoughts to what's been posted so far:

You have a "Basic" account, yet it seems a lot of money is flying around.

Several chargebacks.

Using money to buy property?

I think alarm bells are ringing with HSBC and probably rightly so.

As for having a Basic account in my experience it isn't suspect in itself, I applied for HSBC standard current account and they gave me a Basic account, card, pin everything, I later got the standard current account, so therefore had 2 accounts with HSBC at the same time, I tried to apply for their Regular Saver, got rejected, I had a call with HSBC they eventually told me to get rid of the basic account(even though I had their standard current account at the same time) I did then got their Regular Saver.

I'd say try getting HSBC's standard current account if you can, ditch basic because it seems to me you might not be using it for what it's meant for.

You seem to have at least 1 account elsewhere which you should probably use unless that's a basic too then I don't think I can really help further.

In short I feel you need a standard current account if you don't already 

I had a basic account as my credit score used to be terrible- thankfully it’s improved somewhat now so I managed to get a current account with Santander although I only applied for this last week, I didn’t think it would show up on HSBC’s radar that quickly. I have had a savings account for a while though so maybe it’s that. 

Appreciate 4 chargebacks sounds a lot but they were all genuine, having said that no one has called and asked for further evidence or anything which I found strange if that was the reason for the block

The property money is from inheritance and not actually in my account so that’s unrelated to the block

I’ve closed my account with HSBC today anyway after they unblocked it as the customer service is awful so I’ll start using my Santander current account going forward now