to want to close my bank account after this gross invasion of privacy?

[somanymiles]

I went to get cash out of my bank account this morning to pay the builders (£6,000) and was told I could not take that amount out without hard copy proof of what I was spending the money on eg an invoice. I was given no notice of this so of course did not have anything except a quote on my phone which they did not accept, even though I offered to email it to them. This was not a question of confirming my identity- it was that they have a new policy where you gave to prove what you are spending your cash on. When I asked what the threshold was for the new policy I was told they were not allowed to tell me. I am furious. Surely what I spend my money on us nobodies business but mine. It certainly isn't HSBC's business.I am thinking of closing my accounts there with all the hassle that will entail. AIBU?

There is nothing dodgy in paying £6K in cash to builders. They do your work - you pay them, in cash if that's what they want. That's the contract.

What the builders then declare or otherwise is nothing to do with you.

I am not policing HMRC's tax collection for them.

Come off it, builders and others quite often openly (or by strong implication) offer a lower price if you agree to pay in cash. Why would the houseowner go to the trouble of getting £6K out in cash (with the worry of having to carry it from the bank) if they could just as well pay the same amount by cheque or bank transfer? Helping someone to commit a criminal offence in order to save yourself money may or may not be criminal (I wouldn't know) but it's hardly taking the high road.

To be fair, OP said in a later post the £6k was for multiple builders, not just one.

I'm with Gryffindor - the description plus the email regarding why the funds were required would seem sufficient and possibly if OP had asked to speak to a more senior person at the branch, that might have resolved the matter there and then, but the question itself was reasonable.

NT, it isn't "your money" at the bank; the account is a service they are providing with attached terms and conditions that you agreed to when you opened the account and for which they periodically send you updates, and the service is regulated by the FCA. Just like using a nursery, although it's "your child" attending, you can't tell the nursery not to, say, follow the Early Years' scheme in creativity for your child because they are regulated by Ofsted.

Imagine what is going to happen if/when the GBP is no longer legal currency and everybody needs to hand their cash into the bank to exchange it with Euro.....

Interesting to see how much "unaccounted for cash" will be knocking about.

Or how many people will go and buy TVs, fridges, cars, CASH to avoid this......

^ what happened in France when they adopted the Euro was a rush to build extensions and swimming pools - paid for in Francs (according to the Telegraph)

That's an interesting way of boosting the economy & far more beneficial than chasing pennies from builders.

As I read this thread it occurs to me that it's only the British get ants in their pants about cash and prefer their every movement to be tracked by card.

It's more than normal on the continent to have large cash transactions - in fact in The Netherlands until quite recently big-ticket items were only allowed to be sold COD. I gave my notary 17k cash when I bought my house and nobody batted an eye-lid.

Credit cards aren't ubiquitous here, plenty of people carry large amounts of cash.

The doctrine

I would be pretty pissed off if I went to pick my child up from nursery and they told me to prove where he was going before they were prepared to release him to me.

Italy got very fussy about cash transactions with no receipt as they (used to?) have a big problem with black economy.

My bank's fraud dept calls me up and freezes my accountwhen I do a debit card transaction over £500 and the same has started happening with my credit card. It's very frustrating and I worry sometimes it is because the bank doesn't have enough cash but I suppose it's better than being a fraud victim

What sort of people are you making these payments to?

Are you using internet banking?

Just normal transactions, nothing dodgy.

Established businesses, or private individuals?

I once had a fastpay to my window cleaner stopped and did not hear my phone, that we the first time I'd paid him that way, I confirmed it was OK and subsequent ones not stopped. I have an idea I was phoned when I fastpaid a friend for holiday tickets, but it was cleared straight away so no delay. The bank has my mobile number and texts me when I set up new payments. They are mostly things like credit card co's or car insurance so are recognised by the bank and not queried.

My dad tried to buy a brand new car this week, told HSBC in advance that he would be making a payment at the dealership. Security kicked in, dad's cash out there somewhere in cyberspace lost between HSBC and dealer. Indian call centre obfuscating the situation - had he been able to ring through to his local branch...

He should be able to collect the car at the weekend - if his money appears back out of the void.

Money laundering. We once had a client bizarrely pay us 24k in cash for legitimate services. The accountant broke out in a sweat as he knew the bank would grill him when we tried to pay it in.

Just heard this come up on Moneybox with various 'justifications' and an MP saying he felt the banks were using the vagueness of the regulations to do what they want. HSBC made a statement to the effect they are going to alter the advice for staff.

I can see why some might regard payment with cash as being 'suspicious' but feel that until such time as cash becomes 'illegal' we should opt for this whenever we wish. It's none of the bank's business whether I am about to take a number of relatives out for drinks, a meal, and then off to some club, and would prefer to have cash to do so (or that I'm going to be playing poker with a few friends, or have arranged a stag do, and myself and 10 other men are going to a strip club).

Found it laughable - if I am planning a night out at a casino what 'proof' in advance could I give of my plan to spend a few thousands?

live with it or move overseas

The day one of my websites has a turnover in excess of £1M a month, I'll definitely be going overseas. (Though I would be aiming to employ a number of UK residents, perhaps 20-30 SAHMs, and VAT may still be payable in the UK.)

So, it turns out that HSBC could replace their stupid policy at the drop of a hat:

www.bbc.co.uk/news/business-25861717

But that must mean that many of the comments from banking experts above were a load of hot air. Tell me that isn't so!

Just a matter of "interpretation" I suspect, some having guidance more strict than others :)

Thanks for the BBC link.

I listened to MoneyBox and wondered if the OP was one of the people interviewed.

I still don't get the anger over this - I get that it's annoying but not that it's an actual problem.

I noticed that the panel all thought that getting money out to pay builders in CASH was to avoid paying tax

I don't know anyone could see this as 'not an actual problem'. The banks have no right to deny someone access to their OWN money. It's none of their business what they are spending it on.

I find it ironic that is is HSBC implementing this rule. The same bank that was actively involved in laundering money for drug cartels.

www.forbes.com/sites/nathanvardi/2012/12/12/forget-the-drug-dealers-and-iran-hsbc-is-having-a-great-year/

Well I don't see it as an 'actual problem'. I am happy to go along with things that increase security. It's a bit like when my credit card gets blocked due to unusual spending - it's inconvenient but I would rather that than risk card fraud.

I can't think of a single occasion in my whole life where I have needed more than £1000 or so cash. I don't pay anyone especially builders cash and would use bank to bank transfer if anyone needed instant cash.

It may be your money but it's their bank . There are other banks or underneaths of mattresses

I'm happy to go along with things that increase security. But how does telling the bank how I'm going to spend my money increase security?

Especially if all I have to say is "on a pair of golden shoes"?

How will that increase security or stop money laundering?

I recently withdrew £5k to buy a car. Didn't get asked what it was for but phoning in advance meant they had it ready.

I see that HSBC are now grovelling following the customer feedback (and media publicity):
"However, following feedback, we are immediately updating guidance to our customer facing staff to reiterate that it is not mandatory for customers to provide documentary evidence for large cash withdrawals, and on its own, failure to show evidence is not a reason to refuse a withdrawal.We are writing to apologise to any customer who has been given incorrect information and inconvenienced."

And quite right too. I know on this thread there are a number of bank employees (and others) stating that this was a fine and acceptable policy which really amazed me. Glad to see the bank's U turn in the face of public feedback.