HSBC is suddenly closing my account

Hi everyone,

I thought I'd start this thread in relation to a bizarre letter I got through the post.

I am a small business owner and have been banking with HSBC since November 2009. I do mostly online banking and it works fine - no issues.. To my surprise, I got a letter stating that they are closing my accounts, and no apparent reason is given. Only that on 1st of February 2018 they will terminate all related services.. And I should start making my own arrangements.
For the last 20+ years my credit rating is and has always been A+. Never been nowhere near overdraft with this account, never asked for a loan.. Each and every payment and transaction has been on time and accounted for.. Just straight paying in by clients and payments to me and my accountant.. If I say that it all came as a surprise to me, it will be an understatement..

Is out there anybody with same or similar experience?
I don't know anybody who's been in a situation like this, and wanted to find out what other options are there. Wanted to get as much info I can.. Moreover, how does this affect one's credit rating, and so on..

Any thoughts or comments will be greatly appreciated..

Cheers

Ross
«1

Comments

  • Kim_13
    Kim_13 Posts: 2,315
    Name Dropper First Anniversary First Post Photogenic
    Forumite
    Are you using a personal account for business transactions? This is against the terms and conditions so would explain why they were closing your accounts if this were the case.

    Business accounts have fees attached and while they can be burdensome for a small business, there's nothing you can do about them other than make use of whatever free business banking is available. Have a look at this article which outlines some of the free banking periods available: https://www.moneysavingexpert.com/banking/small-business#acc
  • agrinnall
    agrinnall Posts: 23,344
    First Post Combo Breaker
    Forumite
    Kim_13 wrote: »
    Are you using a personal account for business transactions? This is against the terms and conditions so would explain why they were closing your accounts if this were the case.

    You could be right, but I would have expected HSBC to say so if this was the reason. The fact that they haven't given a reason might suggest that they are unable to give one, for instance if there was suspicion that the account was being used for money laundering (although in that case I wonder if it would have been immediate closure).
  • Just a thought, is it anything to do with FATCA regulations? I know they wanted all sorts of information earlier in the year threatening to close accounts if it wasn’t forthcoming.
  • poppy10_2
    poppy10_2 Posts: 6,575
    Name Dropper First Post First Anniversary
    Forumite
    HSBC laundered billions for Mexican drug cartels. They were almost put out of business by the US authorities, they were only allowed a deferred prosecution on the condition that they clean up their business, making sure they gather more information about where they are taking in money and ensuring it is legit. If they are in any doubt they will close the account, they don't want to take any risks of handling dodgy money again.

    https://uk.reuters.com/article/us-hsbc-smallmid/exclusive-small-uk-companies-complain-after-hsbc-accounts-frozen-idUKKCN1B41YO

    "Anti-money laundering regulations prevent banks from informing customers why their accounts are being closed or suspended where such activity is suspected. In some cases, HSBC may be powerless to tell customers why they are suffering."
    poppy10
  • Thank you for your feedback guys.

    As thriftytwosome pointed out, HSBC bank is threatening to close the account if you do not fill in some information they are after.
    I have had the privilege to do it twice, sometime a month ago and again today.
    Whatever personal info I sent them before, they claim that is incomplete and I had to do it again. After having spent endless hours online and over the telephone, if they are happy with the information I provided, the account will not be closed. Didn't get an affirmative answer.

    This thing is called HSBC Safeguard, but personally I think they just harvest your personal data, so can bombard you with taylor made advertising for their products. Plus wasting about half hour in filling it up. Pure statistics on their 700000 business customers. Moronic too.

    Answer to the first question is no. Mine is a Business Current account. I do not use personal accounts for business transactions / purposes. It is something you just don't do. You can get heavily fined.

    Kind regards

    Ross
  • agrinnall
    agrinnall Posts: 23,344
    First Post Combo Breaker
    Forumite
    ross12 wrote: »
    You can get heavily fined.

    Really? Who by? And for what offence?
  • molerat
    molerat Posts: 31,696
    Name Dropper Photogenic First Post First Anniversary
    Forumite
    agrinnall wrote: »
    Really? Who by? And for what offence?
    Probably in a regulated financial business.
  • kim1485
    kim1485 Posts: 2
    First Anniversary
    Newbie
    We are having problems too with HSBC trying to close our small business account. It is all being done on the pretext of preventing fraud but I think, actually, that they just want to get rid of unprofitable small business account holders. Every time we think we've given them the information they need, we get another letter saying that something else is wrong (including their assertion that a current signature does not match the one that was given to them when we opened the account 15 years ago). We provided proof of identity (driving licence) yet still they were sniffy about the signature not matching exactly (I mean, whose signature matches the one they had so many years ago?). If I didn't think that every other bank is as bad, I would switch accounts.
  • Westie983
    Westie983 Posts: 5,213
    First Anniversary Name Dropper Photogenic First Post
    Ambassador
    This thread is five months old, if you want to get further help or advice might be a better idea to make a thread of your own.

    Westie983
    I’m a Forum Ambassador and I support the Forum Team on the Banking & Borrowing, and Reduce Debt & Boost Income boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySaving Expert.
    Save 12k in 2023 #58 Total (£4500.00) £2500.00/£5000 = 50.00%
    Sealed Pot Challenge ~17 #24 Total (£55.00) £0.00/£500 = 0.00%
    Xmas 2023 £1 a Day #13 Total (£85.00) £344.00/£365 = 94.24%
    Virtual Sealed Pot #1 Total (£500) £550.00/£500 = 110.00%
    £2 Savers Club 2023 #17 Total (£25.00) £45/£300 = 15.00%
    The 365 1p Challenge 2023 #7 Total £656.19/£667.95 = 98.23%
    Total £4095.19/£7332.95 = 55.84%
  • I too have had the same problems. I have a business current account with HSBC and have had my account closed twice. The first I got to know about the account closure is when I couldn't access my account. Apparently I got sent a letter about business details updates if you don't respond they shut you down. The details they required are absolutely ridiculous for a small business and only apply to large businesses and companies mainly doing business globally. It's clearly box ticking at its worst. Ive been unable to move my money for several days because of this and I am seeking legal advice for compensation. Oh and moving my account too.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards