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Original poster

Hsbc just closed my business account with no notice - new bank recommendations

58 replies

Ribenery · 20/02/2022 19:22

I am absolutely fuming. Got a letter through the post yesterday to say my business bank account had been closed with absolutely no notice. There is no email address or phone number to call. On a quick Google, it appears this is happening a lot with HSBC business customers at the moment. I had a look at the Ombudsman's website and it says I should be given 15 days notice to sort things out but they have not done that and all my money is now frozen in the account. Unfortunately, from reading all the stories, it appears as though this will take months to resolve and I'm unlikely to be able to touch my money till then despite having to pay employees/tax man etc.

I'm a premier account holder on the personal side but obviously after they have done this I'll want to close all my accounts with them (I darent say anything now because I will need to use my personal money to pay employees as I don't think it's fair to make them suffer for the bank's horror show) but this is it for me. I've had enough of their shitshow!

Does anyone have any recommendations for personal and business banking?

OP posts:

Hoppinggreen · 20/02/2022 20:29

HSBC did this to me a couple of years ago.
I actually switched to Yorkshire Bank at the recommendation of my Accountant but they have sold the business arm to Virgin
If I was switching now it would be Monzo or if I needed to pay in cheques Starling

CoastalWave · 20/02/2022 20:31

How on earth are they allowed to even do this?!

Have you rung them? That's insane!

FAQs · 20/02/2022 20:33

I’m with Starling, they have a similar reputation actually but touch wood it’s been ok so far.

MostNamesAreTaken · 20/02/2022 20:34

Did they give a reason? Ie commercial or risk appetite?

OldTinHat · 20/02/2022 20:38

This also happened to me but five years ago with Barclays. I've still not got my money back.

Original poster

Ribenery · 20/02/2022 21:18

Oh don't say that @OldTinHat . It's an active account and the business tax with HMRC is due next week!

I had to fill in an information form a few months ago but if there was a problem they were meant to contact me! It looks like from other people that there was some issue with the information on the form. It's a UK business, UK employees, I pay all my tax. The Ombudsman says they have to give you notice (though they are allowed to close it).

I bet if I was in overdraft they wouldn't have closed it! Now I have thousands trapped in the account and either they release it immediately or I'm going to have to pay business tax personally :( to avoid penalties :(

Business support was closed all weekend fgs so can only speak to someone on Monday but I am totally freaked out about the money being trapped for a long time! How will I pay people or the tax etc.?!

Thanks will look at Starling or Monzo.

OP posts:

Original poster

Ribenery · 20/02/2022 21:29

All the letter says is

'Access to your business accounts has been withdrawn. We're now letting you know that access to your business accounts and all related services have been withdrawn. For more information on our Business Banking Terms please see our terms and conditions here' signed 'your business account team'.

No address, no phone number, no email!

And it just links to a general page with loads of links to different accounts and their general Ts and Cs, nothing specific.

When I googled, others are saying when they finally got hold of them that based on the information filled on the form, they took a decision not to continue with the account.

I've been an account holder for 38 years and had a business account for 4 years. Only thing that changed this year was I took on a customer who was in the Netherlands but I can't see how that makes me higher risk. Every other customer is in the UK.

OP posts:

OldTinHat · 20/02/2022 21:36

@Ribenery I do hope it gets sorted out for you. I've still not had an answer or any communication whatsoever apart from they've closed my account 'for business reasons'. They have a lot of money of mine that I can't access, I've almost given up.

Original poster

Ribenery · 20/02/2022 21:46

That's just terrible :(, @OldTinHat I'm so sorry to hear it. I'll make sure I don't use Barclays either then! Have you tried the Ombudsman?

OP posts:

Hoppinggreen · 20/02/2022 21:50

When they did it to me it was because info on a form I had given them didn’t match info held at companies house.
My Accountant wrote a letter explaining that Companies House would be updated when my Accounts were filed but they weren’t interested. I even went into The Branch and the Manager tried to sort it out on the phone for me but actually couldn’t understand the person on the phone!! She was very apologetic, agreed it was crazy but couldn’t do anything about it.
It was really stressful as we had payments due both in and out and my fear was if HSBC closed the account nobody else would let me open one.
I was almost in tears in the Branch

OldTinHat · 20/02/2022 21:53

@Ribenery I tried everything but it was like banging my head against a wall. No answers and no one would/will talk to me. Ombudsman hasn't been of any help yet either.

Sorry this isn't what you wanted to hear but keep on at them and don't give up. Keep fighting. I have everything crossed for you.

DicklessWonder · 20/02/2022 21:57

They did this to us 3 years ago. Properly screwed us over. I had to have the money paid into a spare personal account and then transfer it to a new Lloyds account once opened. Was an absolute nightmare. I went to the Ombudsman but because HSBC said it was to do with International business checks there was nothing we could do. (We had no international business.)

Absolute bastards.

GameofPhones · 20/02/2022 22:15

Financial Ombudsman deal with banking complaints

sme.financial-ombudsman.org.uk/complain/complaints-can-help/banking-payments

Lunar27 · 20/02/2022 22:27

Is it possible you forgot or never carried out a questionnaire? I was a contractor some years ago and banked with HSBC. Not long before I stopped contracting I was sent a questionnaire via email and letter for anti corruption. They gave me 6 months to complete it or they'd close or freeze my account. I closed it before the deadline but at the time I also read of similar things to you OP. Some people had never received letters or their emails ended up in a spam folder.

It all came about because of the trouble HSBC have been in regarding corruption. Therefore they're desperate to clean up their act but are crapping over a lot of people in the process.

Hope it all works out.

Original poster

Ribenery · 20/02/2022 22:34

Thanks everyone and so sorry to hear about all your experiences. It just sounds absolutely dreadful - they have so much power over us!

I will call them first thing tomorrow and let you know what they say but I'm not very positive about it.

@Lunar27 I did full in the form but I suspect it was something on there that's triggered it but just don't know what

I actually don't care if they close it now but i am right royally fucked if I can't have access to that cash this week. I logged onto business banking and can see my balance but I can't transfer it out. That's the bit that is really winding me up!

OP posts:

EnjoyingTheSilence · 20/02/2022 22:44

I’ve used NatWest, Clydesdale, HSBC and Barclays. I loathe HSBC and Barclays.

HSBC had crap customer service , whilst Barclays have amazing customer service but the banking system itself is utter shit.

Had a really good relationship manager at Clydesdale (can’t remember why we stopped banking with them) and NatWest

NatWest all the way for me, good customer service, easy online banking, never any problems

Lysianthus · 20/02/2022 22:46

Starling. Excellent customer service and a great app.

TheFlis12345 · 20/02/2022 22:51

HSBC messed me about so much when I tried to open a business account with them (after having personal accounts for over 20 years) I gave up and opened one with Metro Bank who were fantastic, so friendly and helpful!

Original poster

Ribenery · 21/02/2022 14:13

thanks all

just in case anyone comes back to this or finds it from google

I spoke to them today and they have insisted that last year, I filed the information form 5 days late. I did not receive this form via my online banking which is where I was supposed to receive it. Apparently most people, when they logged in, were directed to a page to do it, I never was. I then moved house and they sent a letter to my old address in error (I updated my address in good time with Companies House) which arrived about 4 weeks later at my new address (in 2021). This letter said my account would be closed unless I filled in the form. I called them and they said it was on my online banking - I then showed them it wasn't via screen shot (luckily I have this proof) so they then said they would email it. It didn't arrive. I called next week and they said it must be in my spam, it wasn't. To be honest, I then forgot about it until I got another letter (to the right address) at which point I called them up and they gave me a reference number over the phone and I had to log in to a different website and fill it in. I did all of this, they thanked me and that was that. This was November 2021. No one at this point mentioned it was 5 days late - they actually told me on the phone that it was submitted and everything was fine.

Apparently they have shut my account in 2022 because that form was due in by the end of October, even though I have proof I never received the form and they sent a letter to the wrong address (which they admitted, apparently their systems hadn't updated despite the address change already being effective). The bloke on the phone this morning just said 'late is late so too bad' - i said surely you could have mentioned this in 2021 when I submitted it and he just stayed silent. I told him I have proof it wasn't in my online banking, he stayed silent. He said 'these are the rules'. I said as a customer who has been with you for decades, could you not have called to tell me. He said no. I said the Ombudsman says I need 15 days notice at least to move the money if possible, he said I should have known last year (how) and it was my problem not theirs.

So they said today, very very begrudgingly, we will send you another form by email today. You need to fill it in today and then within 5 days we will contact you to let you know whether it is ok or not. I said please give me the reference number over the phone so I can fill it in online again because for some reason even though you say it's in my online banking it isn't. They refused and said it will come by email and it's not protocol that they give the reference number out. They promised I would have it in 30 mins. That was 4 hours ago and it's not there. I now have to call them again and see what they can do. They were totally firm and said if the form is filled in late again it is automatic account closure.

I now have the number for the team who assesses the information on the form so hopefully they can at least give it to me online so I can fill it in. This has taken me since 830am this morning and it's now 10 past 2.

OP posts:

Original poster

Ribenery · 21/02/2022 14:15

ah the number they have given me for the direct team who will directly deal with this, which they did send by email and I did receive does not work. So that's all good then.

OP posts:

caranations · 21/02/2022 14:27

This is worthy of a visit to your branch. I'd be incandescent.

GameofPhones · 21/02/2022 15:04

Given this, the Post Office scandal, and our non-functional democracy, we might as well be living in one of the many authoritarian regimes our government spend time excoriating. We have arbitrary authorities impossible to deal with, and no recourse to justice.

jay55 · 21/02/2022 15:20

My business account is with TSB ( was paid to switch from NatWest) and it's not a patch on the NatWest account which was so easy for downloading statements etc.

DicklessWonder · 21/02/2022 15:20

When we had this issue their own guidance said they would communicate via phone and email but did neither. It popped up once in the online banking when I was in a hurry and could not spend time looking at it. When I went back it wasn’t there.

I hadn’t realised how cross I still am about it!

lunar1 · 21/02/2022 15:21

I remember doing that form through their internet banking last year, but it took me through it all. I didn't need anything in the post.

It sounds like someone has messed up your account. I'd be absolutely screwed but f they froze my business account, will you be able to pay your wage?

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