HSBC - Can they close my account with no notice?

[emmaf01]

Last Thursday I went to the cash point and my bank card was swallowed. I knew I wasn't overdrawn, money was due in that day, so I was shocked when I got home to find my bank account had been closed. The money due in that day had been transferred into my savings account.

 

As I had no letters from the bank saying anything useful like "we will be closing your account on the 8th January", I thought there had been some sort of mistake, but when I rang the bank the next day I was told that my account had been closed because a direct debit bounced in November. It was the third direct debit to bounce in my account history. The notice they gave me was a general "your DD has bounced " letter at the beginning of December, which did not say that they were closing my account, but was the same as the previous standard letter, but I now see they ALL include the phrase that they "reserve the right to close your account". Only after the previous letters they didn't.

 

Apparantly this is all the notice they need to give- or are they doing this as it is a basic bank account and as the only money going in is benefits, so they can't levy charges for a DD bounce?

 

So, as they gave us NO notice that the account was being closed, our Carers Allowance had no account to go into, so we got no money yesterday- they say the payment may be returned to the DWP. That's no help to us. As we had no notice, and just had to spend Friday ringing people, hoping to catch them before the money was sent to the old account- God knows whether we'll get any money this week.

 

So- is this the correct way for a bank to behave? I know its not right, but do I have grounds for complaint? Needless to say, their complaints department don't think so.

[hagenuk]

Section 7.5 of the Banking Code states;

 

Closing your account

 

7.5 Under normal circumstances, we will not close your account without giving you at least 30 days’ notice.

Examples of circumstances which are not ‘normal’ include threatening or abusive behaviour towards staff.

 

Banking Code Standards Board

 

So, the answer is no, they should not have done this.

[emmaf01]

Funnily enough, I thought it was a bit suspect.

 

Any ideas what I should do? The person at the complaints department said this letter reserving the right to cancel, was all the notice they needed to give me, and it was over a month ago. So what constitutes notice?

 

At least Nationwide wrote telling me they were closing the account, after I got my charges back.

[Chesterexpress]

Which bank was it?

[midge61]

Was this HSBC by any chance as they did exactly the same to me despite there being nearly 2k in there.

 

I never took it any further but i should as the first 2 dd to bounce were their fault as they did not transfer my account from Smile in time!

[Just~me]

Hi Emma,

 

Looking at your signiture I see you have claimed against:

 

Nationwide- WON!

A&L- WON!

Halifax 1- WON!

Capital One- WON!

Student Loans Company- WON

 

Is one of the above your bank by any chance.??? if so maybe its a way of them getting rid of you for claiming the charges back.

 

just a thought.

 

Just~Me.

[emmaf01]

No, it was my parachute account at the HSBC- midge61 gets the prize!!!

 

And as they have never charged me for anything- including the bounced DDs- I think its the fact that they can't charge me (all my income is benefits) which has prompted this. Or maybe after fighting to get all of those charges back, I am cynical about a banks motivation.

 

Luckily- due to mistrusting banks, I had a spare parachute account.

 

So, what do I do? Written complaint- who to? Any ideas gratefully received.

[**Tilly**]

hi emma

have a look in these 2 links

What to do if your bank closes your account

 

 

Alliance and leicester fined by FOS for retaliatory account closure

[emmaf01]

Thanks Tilly.

 

I'll have a look.

[midge61]

Hi emma

 

Check the T&C's and then the banking code.

 

I'm sure the banking code says the bank have to give 30 days notice.