 Advice to any one starting a new business:
As a business we have banked with HSBC for over 15 years. Last week they decided without warning to close our bank account. No letter, no email, no phone call, no warning once logged on. Nothing.
After speaking to HSBC by telephone (16 minutes on hold) I discovered it was a "safeguarding" issue, and they "couldn't" discuss it. I was told to visit a branch with photographic proof of identity. I duly did this (50 minutes round trip), only to be told "safeguarding" issues couldn't in fact be resolved in branch and go back to telephoning them. On my next call (11 minutes on hold) I was elevated to the Complaints Department (19 minutes on hold). When I pointed out that it was not even within HSBC's own terms and conditions to terminate an account without any notice I was informed that my complaint had been noted and that they would update me on its progress within 5 working days and that they "hoped" to resolve my complaint within 8 weeks. They did at least accept that no attempt was made to contact me (I had expected to be lied to about that), no hint of an apology was made.
Internet searches quickly reveal that HSBC's "safeguarding" relates to the threat of a heavy fine by US banking regulators, due to their previous mistakes (or greed) in their failures to prevent drug and other criminal money laundering. No doubt it is now belatedly prudent for them to tighten their procedures, its a shame that they are unwilling to devote the manpower to do it properly, and deal with any issues that subsequently arise with their non-drug-dealing small business customers.
I am unable to easily pay my suppliers, pay wages, or draw cash. My business is grinding to a standstill. I have sent emails to my suppliers (containing a transcript of my phone calls with HSBC) and am heartened that most of them are understanding and immediately take my word rather than HSBC's, but even so it's somewhat embarrassing. Larger suppliers, eg couriers, just need to get paid to continue providing their services.
I don't feel personally victimised, internet searches reveal this has happened to many small businesses for many months now and it seems an ongoing issue HSBC refuses to supply the resources to rectify. I'm just small fry, I don't matter to them; but some of you setting up new businesses will hopefully be big fish one day - as long as you don't bank with HSBC.
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