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      OT APPROVED, 365MC637, FAROOQ, EVRi, 12.07.23 (BRENT) - J v4.pdf
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Business Account help needed ......... PLEASE!!


Waxsyd
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Hi Anyone

 

Desperate for some advice re my business account with HSBC.

 

Had the a/c for around 3 years with 1.5k overdraft and have kept within limit and pay their fees each month as normal. Due to slow business I had temp overdraft raise to 3k but only for 1 month. Hoped that things would improve and could get back to normal overdraft within time constraint but unfortunately it hasn't happened yet. HSBC are now returning cheques and DD's/SO's etc and banging on charges for these as the temp limit has just ceased. They are also charging £4 per working day for overlimit fee.

 

I've tried to get a permanent increase to overdraft to improve cashflow at this hard time but they don't want to know. Also tried to get a small business loan but again they said no. They did say however that I could have a managed loan at 19.9% int but I would lose all banking facilities by doing this and wont help me out at all.

 

I've now cancelled exisiting DD's & SO's so I don't accrue any more charges. Going to go elsewhere for a new account to carry on with my business needs as I feel completely let down by HSBC and don't want to give them anymore of my money.

 

Any idea what's the best way to go about getting the charges stopped if possible and should I inform them that I will not use the account again and will pay back the balance over a period of time etc? Or another way perhaps .. I'm getting desperate now?

 

Really hope someone can help!

 

Thanks

 

Wax

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Hiya Waxsyd and welcome to the HSBC forum :)

 

have you had a look at all of the charges? are they all in accordance with your account agreement? are they lawful? :cool:

 

Your doing the right thing moving away from HSBC, once you are in this situation the bank will strip any cash they can from your account. You need to look carefully at what they have done to date and start a claim for the return of anything you don't agree with, this will put your account into dispute and will put you on a much stronger footing when negotiating a settlement with them.

 

keep us posted how things are going :)

 

pete

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Hi Pete

 

Thanks for your reply and advice.

 

I have charges for unpaid cheques and DD's at around £25 each. I'll check through all my statements and get onto them.

 

Will keep you posted.

 

Wax

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Pete

 

Been reading through thread re Business A/cs and seems like there are uncertainties about re claiming charges at the moment. A new strategy is perhaps in the pipeline?

 

In the meantime I want to try and get HSBC to stop applying the £4 per day over limit fee and monthly debit interest if possible. I'll never use this bank again & understand that I do owe them money but unfortunately due to ongoing business needs I can't pay the whole overdraft back in one go. I've had to cancel DD's & SO's which still need paying so putting cash into clearing off overdraft at moment would kill me. Obviously I dont want to enter into a managed loan etc at 19.9% interest but want to make them a monthly repayment offer.

 

Any idea how to go about this or have you seen any templates etc for this type of request. I'm going to write to their Service Quality Team anyway to complain about the lack of support given especially in these hard times for small businesses.

 

Wax

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  • 4 months later...

HSBC are now trying to get me to sign up for a managed loan to repay the o/d I have.

 

They will accept just over £60 per month for 12 years!!! All in all with interest this equates to over 8.5K repayable! Yes that's about 5.5k in interest.

 

I've now declined their very nice offer but said I would gladly pay the £60 per month but without signing up for a managed loan. Even if I continued to pay their debit interest at approx £30 per month I'd still pay it off alot quicker (by my reckoning anyway).

 

So, they don't want to know and have now said that they will charge £8 per day for o/d fee and back date it to the time I initially went over my limit. Plus charge the debit interest too. The o/d fee is payable for each working day, therefore £40 per week or £2080 per year.

 

WHAT CAN I DO? ............. PLEASE .......... ANYBODY .......

 

I want to get it paid back but dont want the managed loan option it will cripple me (12 years!!!!).

 

Anyway I can stop the £8 per day o/d fee? Or maybe the debit interest?

 

Cant see how I can put the account into dispute regarding charges as I understand the re claiming of charges doesn't cover business accounts.

 

Please somebody must be able to offer some advice etc, there's lots of experienced, knowledgeable people on this forum.

 

Do I sound desperate? :confused:

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Been on phone with HSBC again today as i've received charges schedule for period end April to end May.

 

They've charged me £160 overdraft fee (£8 per day) and £62 debit interest. The debit interest has increased to 23.58% for some reason, I've only been paying around £30 per month previously.

 

They are trying to pressure me into taking a managed loan at 19.9% and have now started with this ridiculous charging structure to force me into signing. They say it is to 'help' me!

 

Today another £8 will be added and again tomorrow, the day after that and so on ...... until I guess I sign for the managed loan.

 

Please anybody have any experience like this or advice on what to do?

 

I've read many threads re managed loans with people saying not to touch them with a barge pole etc. However my charges are spiraling quickly and I have to do something v soon.

 

Again please help or give advice!!!!

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Hi Waxsyd,

 

I think this may help you more than the forum you're on now :

 

ARE YOU A BUSINESS CLAIMANT?

CAG NOW HAVE A BUSINESS CLAIMS FORUM !

GO HERE !

 

 

Not many of us on the HSBC site are familiar with the business side of reclaiming orientated ......

:)

Nemo me impune lacessit

 

 

Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

 

If you think I've helped you please feel free to tickle my star :-D

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  • 1 month later...

Tried to pay some cash into my business account today but branch staff couldn't input it and said that the account was closed.

 

Telephoned business banking who stated that the account was closed on 14th July and passed to Metropolitan. They very strangely stated that they didn't have an address for Metropolitan but only a phone number and that I should ring them.

 

Obviously I dont want to do anything over the phone so I said I'd wait for them to write to me, if they do!

 

The bank employee told me that the debt had been 'sold' to Metropolitan and my account now closed. If so, should I get some sort of official notice of allocation etc?

 

I'm now expecting to be bombarded by telephone calls. Can I use the template for the harassment by telephone even if its on my business line and not a personal line? Also can I use the template letter relating to DCA visits since it's business premises and not a private address?

 

Lastly, any developments in the reclaiming of charges on business accounts, I've got loads?

 

I'm all questions.

 

Hope you can help ...... again

 

Thanks

 

Wax

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Hi waxsyd ,

 

I think you'll find that Metro , who of course are HSBC 's in-house collectors - (they don't work for anyone else ) ...... are working out of the same premises as DG , who are HSBCs in -house solicitors - to be found at :

 

12 Calthorpe Road

Edgbaston

Birmingham

B15 1QZ

 

If I'm wrong I'm sure DG will know where to pass it on.

 

You should make it clear if they do contact you by phone that you will only deal with them in writing (ostensibly in case of legal action ) . I don't see why the same rules should not apply as with private accounts ....you need stuff in writing in case of legal action , when phone calls can be denied or twisted ........ So yes, I would say you can se the template letter on harassment.........

 

As for claiming Business Charges back , as I said, I 'm not au fait with that ,but hopefully someone will jump in and help out ...... :)

Nemo me impune lacessit

 

 

Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

 

If you think I've helped you please feel free to tickle my star :-D

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