HSBC Business Banking - Serious problem
Discussion
Oh wise ones of PH, I hope someone can help with this one.
I have a business bank account with HSBC. I have lust logged on to their website to discover that I am unable to make any transfers out of the account.
I've called the 24-hours number to be told that my account "is being closed". Why? "Our safeguarding team has been trying to contact you since July and have had no response, so we are closing your account". They (apparently) require some key information from me and have written to me to ask for it. I have had letters from them but nothing that has required a response - i.e. standard changes to T's&C's and statements. No telephone calls, eMails, texts. I have called them on the 'phone since July and this was not mentioned during the conversation.
I have the number of the 'Safeguarding' team who open at 9.00am tomorrow. Has anyone had experience of this sort of thing before, does anyone have the contact number of anyone at HSBC who will be able to do anything other than trot out platitudes, does anyone here work for HSBC Business who may be able to assist?
I will of course be raising Cain with them tomorrow as leaving a small business unable to pay suppliers and unable to access their money is not something I will take lightly. (Besides the small matter of a six figure sum in the account, which I will need some pretty solid reassurances is safe.)
Any advice will be more than welcomed. Thanks.
I have a business bank account with HSBC. I have lust logged on to their website to discover that I am unable to make any transfers out of the account.
I've called the 24-hours number to be told that my account "is being closed". Why? "Our safeguarding team has been trying to contact you since July and have had no response, so we are closing your account". They (apparently) require some key information from me and have written to me to ask for it. I have had letters from them but nothing that has required a response - i.e. standard changes to T's&C's and statements. No telephone calls, eMails, texts. I have called them on the 'phone since July and this was not mentioned during the conversation.
I have the number of the 'Safeguarding' team who open at 9.00am tomorrow. Has anyone had experience of this sort of thing before, does anyone have the contact number of anyone at HSBC who will be able to do anything other than trot out platitudes, does anyone here work for HSBC Business who may be able to assist?
I will of course be raising Cain with them tomorrow as leaving a small business unable to pay suppliers and unable to access their money is not something I will take lightly. (Besides the small matter of a six figure sum in the account, which I will need some pretty solid reassurances is safe.)
Any advice will be more than welcomed. Thanks.
I got the letters and had to sign some forms and that was that. I’ve heard your story a few times though. I think it’s mostly to do with international risk. Do you sell to non eu?
I also got notices when signing in to the online account. Do you use online banking?
For future ref,if you want to have two accounts, try Starling, You can setup a backup biz account in 5 mins including downloading the app. I keep a months expenses in it.
I also got notices when signing in to the online account. Do you use online banking?
For future ref,if you want to have two accounts, try Starling, You can setup a backup biz account in 5 mins including downloading the app. I keep a months expenses in it.
We bank with HSBC too. I did receive the safeguarding letter but discarded it because to all intents and purposes, it looked like a scam - printed out as though its was a photocopy (not on letter headed paper), full of spelling and grammatical errors. I received a second one and thought I best check it out and went into one of their branches to speak to the business team. None of the front line staff knew anything about it but a manager checked and confirmed the detail.
A ten minute telephone call and all was done and fine.
A ten minute telephone call and all was done and fine.
Chaps,
Thanks for your reply. I've just spent nearly 45 minutes on the telephone to them. Their amount of customer service was staggeringly low. Their response to the problem is to raise a complaint, which they have said will resolve in no more than 6 weeks and they may be able to re-open the account once that has been done. I asked what I should do about lacking a business bank account in this time and they said that I would have to "make other arrangements". They refused to allow me to speak to anyone more senior than the person who answered the call, although he said that 'as a favour' he would refer the case to a manager to see if things can be handled 'any more quickly'.
Apparently it is to do with the on-line form which popped up every time I opened the on-line account, which they agreed I had completed but they 'required more information'.
Refusing me access to my business bank account has effectively suspended my business. I will need to open another account somewhere else (how long will this take?), and I guess make a loan from myself to the company into this other account in order that I can pay suppliers. To say I am livid is a vast understatement. This situation is abysmal.
Two more questions:
- Is there anything further I can do to kick them very hard where it hurts? For the first time in my life I am seriously considering legal action for the time and disruption caused. This is completely unacceptable.
- Who offers good business banking? There must be someone better than HSBC. This debacle means that I will have to move elsewhere.
Zubzob - thanks for your answer. I run a London-based letting agency and we deal with a few HNW international clients so I do occasionally make transactions with non-EU accounts. However I haven't done this for over 12 months now. Yes I do use internet banking a lot (almost daily) and saw the pop-ups, and I followed the link and completed their form. Thanks for the recommendation of Starling.
Sheepshanks - thanks for the link. Looks like I am not the only one who has suffered.
Steviebee - Interesting, thanks. Maybe I will take a trip to my local branch.
Thanks again for your help.
Thanks for your reply. I've just spent nearly 45 minutes on the telephone to them. Their amount of customer service was staggeringly low. Their response to the problem is to raise a complaint, which they have said will resolve in no more than 6 weeks and they may be able to re-open the account once that has been done. I asked what I should do about lacking a business bank account in this time and they said that I would have to "make other arrangements". They refused to allow me to speak to anyone more senior than the person who answered the call, although he said that 'as a favour' he would refer the case to a manager to see if things can be handled 'any more quickly'.
Apparently it is to do with the on-line form which popped up every time I opened the on-line account, which they agreed I had completed but they 'required more information'.
Refusing me access to my business bank account has effectively suspended my business. I will need to open another account somewhere else (how long will this take?), and I guess make a loan from myself to the company into this other account in order that I can pay suppliers. To say I am livid is a vast understatement. This situation is abysmal.
Two more questions:
- Is there anything further I can do to kick them very hard where it hurts? For the first time in my life I am seriously considering legal action for the time and disruption caused. This is completely unacceptable.
- Who offers good business banking? There must be someone better than HSBC. This debacle means that I will have to move elsewhere.
Zubzob - thanks for your answer. I run a London-based letting agency and we deal with a few HNW international clients so I do occasionally make transactions with non-EU accounts. However I haven't done this for over 12 months now. Yes I do use internet banking a lot (almost daily) and saw the pop-ups, and I followed the link and completed their form. Thanks for the recommendation of Starling.
Sheepshanks - thanks for the link. Looks like I am not the only one who has suffered.
Steviebee - Interesting, thanks. Maybe I will take a trip to my local branch.
Thanks again for your help.
I had this at the beginning of the year. I ended up resolving it and being told it was sorted....and then ended up with a letter telling me they were closing my account...much panicking later and a complaint got the issue sorted for good but I was livid at the time.
I'm surprised this is still ongoing to be honest, when I spoke to the team they were aware of problems people were having.
Hope you get it sorted.
I'm surprised this is still ongoing to be honest, when I spoke to the team they were aware of problems people were having.
Hope you get it sorted.
I've had some dealings with Metro Bank of late and find them very good. Am thinking of transferring our account to them. Opened a personal account within 25 mins and left with a bank card and all online access there and then. I assume a business account might take a little longer.
IMO, Banks have superseded HMRC as the #1 institution that exists to suppress commercial endeavour. I've been subject to much horror with them and regularly hear of worse. I cannot think of any other business or institution that is completely impervious to the effects of appalling customer service, mismanagement and pig-headedness.
IMO, Banks have superseded HMRC as the #1 institution that exists to suppress commercial endeavour. I've been subject to much horror with them and regularly hear of worse. I cannot think of any other business or institution that is completely impervious to the effects of appalling customer service, mismanagement and pig-headedness.
StevieBee, thanks. I can't disagree! I'll certainly try Metrobank.
Just been to my local HSBC branch and spoken with the branch manager. In fairness I think he did all he was able to do to help, although that amounted to no more than calling the 'Safeguarding' team and telling me everything that they had already told me this morning. Apparently they posted me a letter two months ago telling me that they were closing the account and the branch manager printed me a copy in the branch. It is clear and unequivocal and had I received a letter like that then I would most definitely have acted on it, and I am 100% confident that it never arrived. Did they send it recorded delivery? Almost certainly not.
Branch manager told me there was a 48 hour SLA on resolving the complaint (although called me while walking home to tell me that actually it was 10 days, taking us to the 26th December. I asked him where the 48 hours notion came from and he couldn't tell me that either.) I asked how I was expected to pay my suppliers for those 48 hours and he said he didn't know.
Primary problem is to get a working business bank account up and running, possibly with Metrobank. Second problem is to make a very fulsome complaint to HSBC. If anyone has the contact details of a lawyer who specialises in this sort of thing then I will be very happy to have them. Am I over-reacting? Someone effectively closing down my business without giving any notification doesn't sit well with me.
Thanks again for your help.
Just been to my local HSBC branch and spoken with the branch manager. In fairness I think he did all he was able to do to help, although that amounted to no more than calling the 'Safeguarding' team and telling me everything that they had already told me this morning. Apparently they posted me a letter two months ago telling me that they were closing the account and the branch manager printed me a copy in the branch. It is clear and unequivocal and had I received a letter like that then I would most definitely have acted on it, and I am 100% confident that it never arrived. Did they send it recorded delivery? Almost certainly not.
Branch manager told me there was a 48 hour SLA on resolving the complaint (although called me while walking home to tell me that actually it was 10 days, taking us to the 26th December. I asked him where the 48 hours notion came from and he couldn't tell me that either.) I asked how I was expected to pay my suppliers for those 48 hours and he said he didn't know.
Primary problem is to get a working business bank account up and running, possibly with Metrobank. Second problem is to make a very fulsome complaint to HSBC. If anyone has the contact details of a lawyer who specialises in this sort of thing then I will be very happy to have them. Am I over-reacting? Someone effectively closing down my business without giving any notification doesn't sit well with me.
Thanks again for your help.
Update: access has been restored. I am breathing a sigh of relief.
Am now in discussions about who was at fault and what happens next. But that's for another discussion.
I'll be opening a business bank account at another bank in the New Year. Moving everything over will be a royal pain in the arse but so be it.
Thanks for your input chaps.
Am now in discussions about who was at fault and what happens next. But that's for another discussion.
I'll be opening a business bank account at another bank in the New Year. Moving everything over will be a royal pain in the arse but so be it.
Thanks for your input chaps.
Update: HSBC have admitted in writing that the mistake was theirs - i.e. that I submitted the relevant information on their on-line form but they had a technical issue which meant they were unable to access it. A complaint to Amanda Murphy (head of Commercial Banking) has produced a letter with a very mealy-mouthed apology and a 'Thank you for bringing this matter to the attention of Amanda' from a member of her staff.
Things weren't helped by a second threat to close down the account subsequently, again for failing to provide the relevant information. Thankfully that threat was never carried out but it took more time and effort to head off.
I therefore have two remaining questions;
- Who should I change business bank accounts to? Santander, Metro Bank and Handelsbanken all get well recommended but Metro Bank charge per transaction (first 50 free per month) which will make it quite an expensive exercise for me. Handelsbanken sound pricey (and there are no straight answers to anything on their website, which looks like it came out of the 1990's) but their customer service is meant to be superb.
- This little fracas has cost me about 2 days of downtime and the mistake was entirely HSBC's. I loathe the 'compansayshun' culture but in this instance am disinclined to take gross inconsideration for a long-standing (15 years) customer lying down. Am I better advised to go back to HSBC and ask for something, take it to the Ombudsman or simply think of a sum and try my luck in the small claims court?
Al help welcomed, and thanks for the help thus far. The more I dig into the reputation of HSBC Business Banking the more I discover what a shower of s
t they are.
Things weren't helped by a second threat to close down the account subsequently, again for failing to provide the relevant information. Thankfully that threat was never carried out but it took more time and effort to head off.
I therefore have two remaining questions;
- Who should I change business bank accounts to? Santander, Metro Bank and Handelsbanken all get well recommended but Metro Bank charge per transaction (first 50 free per month) which will make it quite an expensive exercise for me. Handelsbanken sound pricey (and there are no straight answers to anything on their website, which looks like it came out of the 1990's) but their customer service is meant to be superb.
- This little fracas has cost me about 2 days of downtime and the mistake was entirely HSBC's. I loathe the 'compansayshun' culture but in this instance am disinclined to take gross inconsideration for a long-standing (15 years) customer lying down. Am I better advised to go back to HSBC and ask for something, take it to the Ombudsman or simply think of a sum and try my luck in the small claims court?
Al help welcomed, and thanks for the help thus far. The more I dig into the reputation of HSBC Business Banking the more I discover what a shower of s
t they are. Me experience with HSBC has been absolute st also. They are completely inept at handling business accounts. Even things like trying to get replacement business debit cards has been totally beyond belief. You can't speak to a person in the bank anymore, your account is handled by an "account manager" in the midlands somewhere who has no clue about your business.I would gladly switch to another bank if not for the fact that I have so many clients set up with my bank details.
t also. They are completely inept at handling business accounts. Even things like trying to get replacement business debit cards has been totally beyond belief. You can't speak to a person in the bank anymore, your account is handled by an "account manager" in the midlands somewhere who has no clue about your business.I would gladly switch to another bank if not for the fact that I have so many clients set up with my bank details.We had two business accounts with HSBC for two different business.
First one has been trading with very active and healthy accounts since 2004 and another trading pretty much the same way since 2011.
Tried to take out a loan of a small amount of £10k and they wanted to know the colour of my underwear before even thinking of lending me the money! 14 years of trading history and never been in default or overdraft and this is now they reacted!
Second business account - we had the same letter to shut down the account due to safegaurding and lack of info we supplied.
Moved both accounts to Barclays. The other issue with HSBC is that they are on a mass branch closing down spree...my nearest branch is now 8 miles away where as I used to have a local branch a mile away!
IMHO the future does not look too bright for HSBC as they seem to have lost the plot!
Move elsewhere ASAP IMHO! Good luck. Metro bank does look good too!
First one has been trading with very active and healthy accounts since 2004 and another trading pretty much the same way since 2011.
Tried to take out a loan of a small amount of £10k and they wanted to know the colour of my underwear before even thinking of lending me the money! 14 years of trading history and never been in default or overdraft and this is now they reacted!
Second business account - we had the same letter to shut down the account due to safegaurding and lack of info we supplied.
Moved both accounts to Barclays. The other issue with HSBC is that they are on a mass branch closing down spree...my nearest branch is now 8 miles away where as I used to have a local branch a mile away!
IMHO the future does not look too bright for HSBC as they seem to have lost the plot!
Move elsewhere ASAP IMHO! Good luck. Metro bank does look good too!
I think there is definitely a case for new types of banks, and some appear to be on the horizon - it wouldn't surprise me if we saw a complete shake up in banking in the next 5-10 years - if I had the energy / expertise / money - that is one area I would be pushing into, I suspect that there will be some very wealthy people as a result of setting up new banks... look at companies like Stripe / PayPal and watch them become banks...
Companies like Atom and Monza, Starling etc. are producing digital banks: https://www.techworld.com/startups/ranked-uks-new-...
I have another company which is semi-dormant - it transacts a small amount of passive income every year - I have used HSBC for years with this company. Last year I tried to log into the online banking - it was closed - because I hadn't logged in for 6 months, so they removed online banking... when I spoke to them I asked why and they said that they couldn't contact me - so I asked which of mobile / telephone / address / email they found difficult to use?! They admitted that they had messed up... and back tracked from needing to reapply to getting it back on very rapidly...
however, I do now plan to use that business to test one or more of these online / digital banks... their websites are likely to be good (HSBC's is the worst I have seen in 30 years!)
interesting times, and it probably needs more people to get past their inertia and change
Companies like Atom and Monza, Starling etc. are producing digital banks: https://www.techworld.com/startups/ranked-uks-new-...
I have another company which is semi-dormant - it transacts a small amount of passive income every year - I have used HSBC for years with this company. Last year I tried to log into the online banking - it was closed - because I hadn't logged in for 6 months, so they removed online banking... when I spoke to them I asked why and they said that they couldn't contact me - so I asked which of mobile / telephone / address / email they found difficult to use?! They admitted that they had messed up... and back tracked from needing to reapply to getting it back on very rapidly...
however, I do now plan to use that business to test one or more of these online / digital banks... their websites are likely to be good (HSBC's is the worst I have seen in 30 years!)
interesting times, and it probably needs more people to get past their inertia and change
HSBC are an absolute shower of st.
We are a group structure and one of our main trading subsidiaries banks with HSBC. It's averages about £400k in cash in the account for the past couple of years.
During the summer last year I completed the online KYC process, leading to lots of silly questions from them demonstrating they have no idea how to read and understand Co. House information. Phone calls with junior staff in Asian call centres were incredibly frustrating, as the staff were obviously insufficiently knowledgeable to do the job in hand, competently.
We had to go as far as producing a solicitors letter confirming the shareholding composition of the parent Holding Co.
Eventually the KYC process was shown as complete in our online banking and we carried on.
Until October, when we received a letter telling us our account would be closing on 18th December and the decision was final.
In the meantime we began arranging with Barclays to move our entire Group banking to them from HSBC and Handelsbanken. Our group TO is about £5m and contains a (slightly) complex shareholding structure and an FCA regulated business, which means multiple teams at Barclays needed to be engaged to open the accounts, which seemingly takes them a long time.
As we get closer and closer to the deadline of 18th December, Barclays are still not ready. I then ring HSBC to ask for an extension, only to be told that they have written to us a month before (no sign of that or any notification on online banking), saying actually the decision wasn't final and we could keep our account if we have them some information (almost unbelievably, it was to confirm where our initial funding came from in 2016, information we gave them when we opened he account with them...).
The information was given to them and in any case an extension agreed on the closure to 17th Jan to allow for the Barclays account to be ready. Should have been sitting pretty whatever happened.
On 7th January, my business debit card is refused on a low value chip and pin transaction. Thinking it's the anti fraud kicking in, I call HSBC to reactivate the card. Except I can't. This is because our account has been closed (at this point suspended, paenr can come in but none can go out).
The numpty on the phone in December has agreed 17th and put 7th in the computer at their end. No amount of discussion or department swapping would change their minds. The lady in the corporate complaints department was very nice, however it came down to no record at their end of the 17th and so I must have been mistaken. Her initial solution was that "the account is earmarked for closure and when it closes we'll send you a cheque for the balance". For our main trading account this was disastrous.
Ultimately, the Barclays account was ready within a couple of days and HSBC granted an exception to allow funds to transfer to it, however that one piece of incompetence could have been disastrous had it happened a couple of weeks later, when were due to pay out several hundred K to staff and suppliers.
I've now moved my personal away from HSBC too. Took me about 3 mins online to open a Barclays Premier account. All good so far.
t.We are a group structure and one of our main trading subsidiaries banks with HSBC. It's averages about £400k in cash in the account for the past couple of years.
During the summer last year I completed the online KYC process, leading to lots of silly questions from them demonstrating they have no idea how to read and understand Co. House information. Phone calls with junior staff in Asian call centres were incredibly frustrating, as the staff were obviously insufficiently knowledgeable to do the job in hand, competently.
We had to go as far as producing a solicitors letter confirming the shareholding composition of the parent Holding Co.
Eventually the KYC process was shown as complete in our online banking and we carried on.
Until October, when we received a letter telling us our account would be closing on 18th December and the decision was final.
In the meantime we began arranging with Barclays to move our entire Group banking to them from HSBC and Handelsbanken. Our group TO is about £5m and contains a (slightly) complex shareholding structure and an FCA regulated business, which means multiple teams at Barclays needed to be engaged to open the accounts, which seemingly takes them a long time.
As we get closer and closer to the deadline of 18th December, Barclays are still not ready. I then ring HSBC to ask for an extension, only to be told that they have written to us a month before (no sign of that or any notification on online banking), saying actually the decision wasn't final and we could keep our account if we have them some information (almost unbelievably, it was to confirm where our initial funding came from in 2016, information we gave them when we opened he account with them...).
The information was given to them and in any case an extension agreed on the closure to 17th Jan to allow for the Barclays account to be ready. Should have been sitting pretty whatever happened.
On 7th January, my business debit card is refused on a low value chip and pin transaction. Thinking it's the anti fraud kicking in, I call HSBC to reactivate the card. Except I can't. This is because our account has been closed (at this point suspended, paenr can come in but none can go out).
The numpty on the phone in December has agreed 17th and put 7th in the computer at their end. No amount of discussion or department swapping would change their minds. The lady in the corporate complaints department was very nice, however it came down to no record at their end of the 17th and so I must have been mistaken. Her initial solution was that "the account is earmarked for closure and when it closes we'll send you a cheque for the balance". For our main trading account this was disastrous.
Ultimately, the Barclays account was ready within a couple of days and HSBC granted an exception to allow funds to transfer to it, however that one piece of incompetence could have been disastrous had it happened a couple of weeks later, when were due to pay out several hundred K to staff and suppliers.
I've now moved my personal away from HSBC too. Took me about 3 mins online to open a Barclays Premier account. All good so far.
I know it’s not commercial banking so apologies for the slight segway, however I remember HSBC being one of the first (to my knowledge) organisations to succumb to social media pressure and complaints. When I was a student they offered student accounts with a host of benefits, including a guaranteed low or interest-free overdraft facility when transferred to a graduate account, this was part of the offer and benefit of opening.
However after 4 years and right before graduating (around 2006) HSBC changed their mind and withdrew the benefits of the graduate account. No amount of whinging from anyone convinced them to change their mind, whilst forgetting they were missing out on a massive group of people who will have salaries starting to be paid in, taking out first mortgages etc.
This was right around when Facebook was going mainstream, cue loads of complaints and public shaming and HSBC reversed their decision, but most still closed their accounts and moved to competitor graduate accounts. It was hugely satisfying going into a branch to close my account and give them the proverbial middle finger.
How a company can run in this fashion I’ll never know.
However after 4 years and right before graduating (around 2006) HSBC changed their mind and withdrew the benefits of the graduate account. No amount of whinging from anyone convinced them to change their mind, whilst forgetting they were missing out on a massive group of people who will have salaries starting to be paid in, taking out first mortgages etc.
This was right around when Facebook was going mainstream, cue loads of complaints and public shaming and HSBC reversed their decision, but most still closed their accounts and moved to competitor graduate accounts. It was hugely satisfying going into a branch to close my account and give them the proverbial middle finger.
How a company can run in this fashion I’ll never know.
Dunno why santander get so many props, my last dealings with them they had notices all over the branch informing customers not to abuse their staff. That says all you need to know about an institution and the service you're going to receive.
Personally I'm with RBS for the simple reason they were able to open an account and take a cheque on the Tuesday and have me solvent by the end of the week, with most other banks having a "may take 2 weeks" response and dismissive attitude to ones urgencies.
Personally I'm with RBS for the simple reason they were able to open an account and take a cheque on the Tuesday and have me solvent by the end of the week, with most other banks having a "may take 2 weeks" response and dismissive attitude to ones urgencies.
I've been with HSBC/Midland since 1992. It was better when I dealt with a proper Bank Manager, he then moved to Commercial Banking and took me with him. Unfortunately he then retired about 12 years ago.
Having a 'relationship manager' does at least mean we don't talk to the call centres. But they keep moving them about and they are variable in competence.
We have a new one who seems effective, I'll have a better idea after her introductory visit next week.
The last one came thought I trained racehorses which he can only have misread from Google. A relative nearby with the same surname trains horses but doesn't bank with HSBC! The relationship went downhill from there.
To their credit they have never removed my overdraft or tried to close my account. I usually have more of their money than they have of mine, which may help!
Having a 'relationship manager' does at least mean we don't talk to the call centres. But they keep moving them about and they are variable in competence.
We have a new one who seems effective, I'll have a better idea after her introductory visit next week.
The last one came thought I trained racehorses which he can only have misread from Google. A relative nearby with the same surname trains horses but doesn't bank with HSBC! The relationship went downhill from there.
To their credit they have never removed my overdraft or tried to close my account. I usually have more of their money than they have of mine, which may help!
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