My bank no longer want my custom...

[Bristol spark]

Opening the post this morning, and to my shock a letter from the bank stating they no longer want me as a customer, and giving me two month notice before terminating all my business accounts.

I have only ever used said bank my entire life for both personal and business account, so would say i was a loyal customer.

I cant think how i have upset them...

My only thought is i generally bank cash into my personal account, then transfer to business account to save on the fee’s.
But surely if this was not allowed, a warning letter would have done?

Is rather inconveniant, as have a surprising amiunt of DD’s etc.

I have never heard of a bank terminating your services??

Anyone else had this happen?

Have just tried speaking to someone, but they wont give a reason, and just state the status is not reviewable!!

[Shnozz]

This isn't the first time I have read a PH post in the matter. I believe it follows a hefty fine levied on HSBC in the USA for not keeping a watch on potential sources of payments into business accounts and thus money laundering.

I thought they were seeking further information from businesses to cover their backsides but perhaps yours has failed the first test so you don't have that option.

Either way, I would probably just set up an alternative business account pronto. Do you get asked whether you have ever had your business account declined by another bank in the same way you do regarding insurance etc? That could be a concern if so.

[Oceanic]

This is no way to treat any business or private customer, not offering to revisit the issue just shows what a bunch of total arsehats HSBC are.

[essayer]

I knew this would be HSBC. Did you complete the Safeguard review recently?

[Robertj21a]

I think most banks will become ever more active to identify accounts that are unprofitable for them, yours appears to be one. You will find that many people have their bank accounts terminated without much notice if they flout the T's and C's.

[Leithen]

FT Article about this.

[Eric Mc]

Paywall blocked.

[Leithen]

Eric Mc said:

Paywall blocked.

You don't have an FT sub Eric?

I'm shocked!

[Eric Mc]

Leithen said:

You don't have an FT sub Eric?

I'm shocked!

Very little in it of relevance to the type of business and clients I deal with. I get plenty of relevant into from the accounting and tax press and websites.

[Bristol spark]

essayer said:

I knew this would be HSBC. Did you complete the Safeguard review recently?

No, i keep meaning to do it.......

So it looks like this is the reason, however you would think a warning/reminder would be due before just closing the account!!

A bit of googling seems to show this as a widespread issue.

And looks like its too late to do it now, so guess i will have to get a new bank!
And will move my personal one as well!

[Sheepshanks]

essayer said:

I knew this would be HSBC. Did you complete the Safeguard review recently?

We've had to do that several times over the 10 years we've been with them.

They caused a lot of hassle last year asking for proof of identity from long-standing M&S customers who use the M&S Card, run by HSBC. In the end they seemed to back down.

[Robertj21a]

Bristol spark said:

No, i keep meaning to do it.......

So it looks like this is the reason, however you would think a warning/reminder would be due before just closing the account!!

A bit of googling seems to show this as a widespread issue.

And looks like its too late to do it now, so guess i will have to get a new bank!
And will move my personal one as well!

Yes, I think they mean business nowadays. Flouting the rules and you're out !

[Shnozz]

With all due respect, whilst I have no love for HSBC, you are paying cash from personal account to business and then don't get around to responding to their Safeguard request. I don't think HSBC have that many options in this instance.

[essayer]

The very first letter did probably say something like

HSBC said:

What happens if we can't update your information within 60 days? We may have to close your account(s) with us if we do not receive the required infomation by 60 days from the date of this letter.

So sympathies, but in this day and age banks have to be really serious about money laundering etc.

[Oceanic]

essayer said:

So sympathies, but in this day and age banks have to be really serious about money laundering etc.

I had a letter from these cretins saying they needed it within 14 days, not very reasonable!

[So]

HSBC has ceased to be a very good business bank. But we're a bit afraid to move in case the others are worse.

[BlackLabel]

Eric Mc said:

Paywall blocked.

If you google HSBC faces legal challenge from small businesses and then click on the first link under top stories you should be able to read it via google and therefore bypass the paywall.

[Robertj21a]

So said:

HSBC has ceased to be a very good business bank. But we're a bit afraid to move in case the others are worse.

They all have to tighten up a bit more nowadays. Customers should try to comply with their T's and C's - or be prepared to be closed down.

[Simpo Two]

It's amusing that the four bullet points don't actually connect with the paragraph under 'What happens next'.

[So]

Robertj21a said:

So said:

HSBC has ceased to be a very good business bank. But we're a bit afraid to move in case the others are worse.

They all have to tighten up a bit more nowadays. Customers should try to comply with their T's and C's - or be prepared to be closed down.

The biggest problem for us is their online banking. With our other bank, we can select a date range and view transactions between those dates. With HSBC, we can only view back as far as the 18th, so if we login on the 20th we see 2 days transactions.