Loyal customer who has been with bank for 35 years baffled by 'unacceptable' treatment
I received a letter from HSBC saying it intended to close all my accounts. It gave no explanation. It doesn't give me the option of keeping the accounts open. Neither does it allow me to appeal against the decision.
My accounts are in a healthy state. The staff at my local branch are unable to explain why the decision was taken. The only advice I received was to write to the bank's complaints section, but with the ominous warning that "they may not be willing to give you a reason either". I have been banking with HSBC and its predecessor, Midland, for 35 years. I consider this to be a completely unacceptable way of treating a loyal customer. DR, Truro, Cornwall
HSBC is no more forthcoming with me. "We never take the decision to close a customer's account lightly and understand that the decision can be difficult for a customer to accept," says a spokesperson. "However, as a bank committed to controlling and managing risk to the highest international standards, we may decide to close a customer's account where we do not feel that risk can be managed to those standards." The bank declines to elaborate on what "risks" it is referring to in your case.
Over to the Financial Ombudsman Service (FOS) which says that, although banks are generally obliged to provide a reason – and sufficient notice – for closing an account, they can on rare occasions do so without either: for instance if they suspect illegal activity.
The FOS says: "We do receive complaints about account closures, with or without notice, and we would investigate all evidence surrounding what the bank did and the reasons behind it. Then we can decide whether the bank's decision to close the account was justified or not."
In your case the FOS decides HSBC made a commercial decision in line with its terms and conditions – and it can't compel the bank to give a reason.
If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number.
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