HSBC- Likely to close my account if I take action?

[Javey]

Hello Everyone,

 

I've read and studied a lot of the forum with interest, and I am quite keen to take action to claim some of the bank charges I've paid back. But, I do have one or two concerns and I wonder if anyone has any advice or experience that would help.

 

I've been an HSBC customer for many years and although it would be annoying and a bit inconvenient to have to change accounts I would be happy to do it but for two things: The main problem is that I have a credit card attached to my account and I'm not at the moment at least in a position to be able to pay that off in full, so if HSBC foreclosed my account as a result of any bank charges claim it would be difficult. Also, in the process of trying to set up a separate 'parachute' account with another bank I've found that most if not all seem to an agreement that my wages paid in before they will let me open a new account. I don't want to do this yet, as ideally I'd like to keep the HSBC account because ironically apart from the charges issue I've been fairly happy with thier service.

 

I'm not totally confident about how to make my claim as yet, I think that I do have a fair amount to learn before I go ahead and take any action. I imagine it will be in the new year but if and when I do can anyone let me know how likely HSBC are to close my account?

 

Thanks for any advice .

[GaryH]

Hi Javey - welcome to the CAG.

 

Firstly, for a parachute account, have you tryed the Co-op? They're about the best of the bunch I reckon.

 

With regards to account closure, with HSBC I would say its very, very, very unlikely. I have rarely heard of cases where they have closed an account, although there are no guarantees of course. Closing peoples accounts for merely pursueing a legitamate right does not go down to well with the regulators, and the FSA have ruled earlier this year that action such as this is discriminatory and unnacceptable.

 

Also I should say well done for wanting to learn about the process before starting your claim. Far to many people get exited and jump straight in headfirst without really knowing what they are doing, which inevitabily leads to mistakes further down the line. Give it a few days or so to read up on all the important bits in the 'FAQ's' section, such as the step by step instructions, and read through some of the successful claims in the 'HSBC successes' sub-forum. Obviously its up to you, but I would'nt have thought you need to wait untill the new year to start your claim. Sooner you start the sooner you'll get your money back! Each step takes a bit of time anyway so you can learn as you go along, plus there are people here to help you whenever you need it.

 

Good luck,

 

Gary

[Javey]

Thanks for the help and advice Gary . I'm relieved to learn that the bank are unlikely to close my account. Also funnily enough I had recently been looking into a Coop account- it looked like the best idea, so I'll definitely try for that now.

 

I'm still reading up on how to go about my claim. I actually think that it's the confidence that I know what I'm doing before I start is what I need - hopefully I'll be able to go ahead soon, (and it won't be that scary!). Anyway thanks once again.

[GaryH]

Yes, it is a bit scary first of all, its only natural - you'll be sueing a £multi-billion organisation after all! Your confidance will grow as you begin to understand the legalities involved though, and that the law is firmly on our side as far as penalty charges go.

 

Here you go, have a read of some of the successes threads; http://www.consumeractiongroup.co.uk/forum/hsbc-fd-hfc-successes/

[cashme01]

HSBC closed my account but only after I claimed for a second lot of charges, not after the first. In fact they very helpfully pointed out to me exactly how much they had charged me over 6 years themselves when I sent a letter asking for a mere single £30 charge back. On that occasion they paid up with £1850.

 

Unfortunately, when I claimed for a further £150 applied to my account after they had agreed to pay up, they gave me the full amount but a week later I received a letter telling me that my account would be closed in a month. Still, it was worth it to get nearly £2k back.

[GaryH]

Yes, you're far, far more likely to get your account closed if you claim for a second time on the same one. Halifax do that too. Generally speaking, the only bank that will close your account the first time round is Alliance and Leicester. They won't get away with it for too much longer though I don't think.

[Javey]

Thankyou both for the advice and encouragement.

 

I still have more reading to do, but I have drafted my SAR which I plan to post at the beginning of November. I figured that it will take them some time to provide the statements so I can do more 'studying' whilst I'm waiting. As I've been a customer for many years of HSBC and I understand that you can only claim for the past six years I've amended the letter very slightly to say 'Please supply me with a complete list of my transactions and charges relating to my banking history on this account since Nov 1st 2000' . Is it OK and appropriate to use this wording do you think?

 

At this stage I don't even know how much I may be claiming, once the statements arrive, and I've made sense of them I'll post more information about my case.

 

Anyway, fingers crossed.

 

I'm off to read that thread of success stories for inspiration.

[GaryH]

That wording's absolutely fine.

 

Good idea to get it off pretty much straight away. By the time you get your statements (usually about a month with HSBC) you'll be chomping at the bit ready to launch into the next stage!

[CunningStunt]

Hi my own claim against HSCB was successful and I am now helping a friend in her claim against the Abbey. (She doesn't have internet access). so far they have sent two letters trying to fob her off, the Letter before Action is due to be sent tomorrow. she received a letter yesterday saying they were closing her account and she sould send back her card. Can any one direct me to info on how to reply to this.

[GaryH]

I've got a letter you can send, but please start your own thread in the Abbey section first, then I will post it there.

[Javey]

Just to update this:

 

I've drafted my S.A.R., addressed it to Canada Square and I will be posting it recorded delivery tomorrow 31st October. I can also access my statements online, but I think it makes things more formal this way.

 

I shall also be applying for my parachute bank account in the next few days, most probably with the Co-op. Only one tiny worry with this; recently I was refused a credit card (I wanted it to balance transfer a couple of others at 0%) for the first time ever. I hope that this does not mean that I may be refused another bank account, I've decided to apply for the most basic account they offer (no overdraft etc) just in case. I'll keep the new account in any case and perhaps use it for ebay sales.

 

Lastly, I'm still a bit nervous about calculating the charges and filling in the spreadsheets (no formal training on computers!) but I'm going to do a fair amount of reading in the next month or so.

 

Today unfortunately HSBC charged me £75 (charges form last month) luckily I've been very careful this month so hopefully fingers and toes crossed that will be the last unfair charge they'll ever get from me.

[Javey]

Another update:

 

Received what I think is thier standard letter yesterday saying that the statements will be here soon. They also enclosed my £10 cheque which, despite the banks being the enemy and everything, I do think is a nice gesture.

 

I'm looking forward to moving on with this although I am a bit worried about making sense of the charges on the statements. Also, I don't know if I'm the only one but I find checking though old finance details slightly depressing, I think it's the looking at how much I spent (wasted:p ) that does it.

 

Anyway, onwards and upwards... I'm hoping that the statements will arrive next week as I have a few days off. Thankyou all for your help and invaluable information so far.

[Javey]

The statements arrived this week individual envelopes (not sure why but I found that surprising).

Anyway, despite my terrible spreadsheet skills (God, I really am bad at them!) it did not take me too long to work out that HSBC have charged me £2194.50 :o for the privilege of being a customer in the past six years. This consists entirely of thier 'TOTAL CHARGES', interestingly they've never bounced a cheque of mine or refused a direct debit. Mind you, I can understand why they haven't as it appears to have been far more profitable to just use the charges. The request for the money back will be posted tomorrow.

I'll update as I hear anything, although I think that Christmas will delay this somewhat. Oh well, I'm not particularly bothered the money is money I wouldn't have had anyway- so I'm prepared to be patient.

[GaryH]

Excellant. Going great so far Javey.

 

Hmmm.. yes your probably right, Christmas may be a week or two too soon to get this settled in time for it. Probably looking at early to mid January I would have thought. Saying that though, you should receive an initial offer of around 80% of the claim after your LBA, so depending on whether you want to accept that or not you may get done by Christmas. Its not recommended that you accept anything less than 100% really, but clearly thats entirely up to each individual claimant, obviously.

 

Keep us updated!

[Javey]

Apologies for not updating this sooner (although until today I didn't have too much to say). Anyway just after I sent the LBA my lovely lovely computer decide to die:o leaving me in a kind of limbo. After a phone call or two, a new shiny computer and more money spent I was back online to pursue the case. Luckily I had managed to save some data.

 

In the meantime, I had heard zilch from HSBC in any case not even an acknowledgement. Fast forward to today and lo and behold a letter from the bank! They've offered me £1866, which I don't think is that bad to be honest. I certainly wasn't expecting that much as a first offer. I could push for the extra what £300? But I think I'll settle. I know that some will say I should push for the full amount but the way I look at it I've got £1866 more that I started with and although I could do the court thing I don't really want to to be honest.

 

Of course, it's all totally thanks to this wonderful site. So thank you to you all. I shall send my contribution as soon as I can after I receive the money.

[GaryH]

Congratulations Javey - excellent news, well done.

 

As I said in the post above, its down to the individual claimant alone to decide whether to accept the first offer or not. If your happy with the amount they've offered, then great, go for it.

[Javey]

Thanks Gary.

 

Since I posted the acceptance letter tonight I've been slightly wondering if I did the right thing. I know that it's probably better to hold out for the full amount but the truth is I don't really want to take this to court. It's not that I couldn't or wouldn't, it's more a touch of laziness I suppose really- in that I can now say it's all done and I can get on with other things. I'm not in dire financial straits, but as I've made it resolution this year to be better with money I'm not going to go mad with the money either. I'll most probably pay off a credit card so that's one less bill I have to worry about each month.

 

So I don't see it as a failure, I think I had a minor victory against the bank and anyway, I will still visit here and post and I still feel that this is an important issue. I want to be here the day on the day of reckoning when the tide finally turns and all this people power finally gets them to change their policies and the way they operate. The way things are going, it surely must be coming soon.