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After Public Outcry From Customers, Britain's Biggest Bank HSBC Heads Off Complaints Over Small Business Account Closures (theguardian.com)
Julia Kollewe writing for The Guardian: HSBC has rushed to head off complaints from small businesses that found the bank had frozen or closed down their accounts as part of a crackdown on financial crime. Hundreds of small firms are thought to be affected, whose businesses range from an avocado importer to marketing and design companies. Britain's biggest bank, which has faced accusations of reacting slowly to the debacle, said that after becoming aware of problems in the past week, it was putting extra staff on its helpline and speeding up the process for dealing with complaints. It said staff were reducing the amount of time to unfreeze an account once a review had been completed. Earlier on Monday, Richard Davey, an HTML5 game developer and creator of Phaser, shared his ordeal dealing with HSBC, which had suspended transactions from his accounts without much explanation. It was only after thousands of users brought it to the company's attention on social media that the company fixed Davey's account, he said.
Is this post a joke, if not:
You do know banks keep history right?
you simply don't freeze the account until you have the evidence. That way you don't freeze random innocent peoples accounts, which can stop them doing things like buying food to eat, paying rent, etc. In the case of companies paying wages which mean employees can buy food etc.
Yes the fraud would continue for longer, but its not like it hasn't being going for a long time already.
I don't run a small business, but the sheer incompetence of large banks like these are why I do my banking with a credit union. Any time I've had an issue, I've been able to resolve it in under five minutes. If you get to know some of the people who work there, they'd probably nip idiotic moves like this in bud.
It's not the banks doing it, it's the federal regulatory agencies. Small banks have to report this behavior, too. It's the regulatory agencies that are ordering the banks to freeze accounts.
Also, it's apparently $10,000 per transaction, not $5000.
My Other Computer Is A Data General Nova III.
Unfortunately, I also have a business account with HSBC, and was brought into the 'Safeguard' process on 21 JUN (under threat of account closure).
After making an appointment, I spent a long time on the phone for a very detailed interview about by business and how funds arrive and why they leave the account. There were some oustsanding documents required, I was assured an email would be sent to follow up, detailing what was required. It never arrived, I learned later that the the person taking the call managed to miss-spell my email address and website, and the bounce of non-delivery wasn't understood/actioned.
After some time passed, phoning to enquire about status I eventually got an email request for more information on 2 AUG, that I supplied. After 7 days I asked for an update, I got a HSBC response that the review is with the Processing Team. This matters, as the people you can actually talk to are HSBC, it seems communication is all never direct between Processing Team and us, the customer. Anyway, 18 days later I declare my unhappiness by email, and get .... nothing.
On 30 AUG I get another request by email for info, that I reply to, and ask for an update given the near zero communication. A few days into SEP I get the final notice:
"IMPORTANT NOTICE: Suspension of your payment services and closure of your HSBC Business Banking / Corporate accounts."
Well **** me, stuff got real. I phone HSBC (they cant respond or comment because the processing team is dealing with it and there is nobody available). Awesome.
Despite continued efforts to communicate with HSBC over Safeguard, their inability to communicate effectively with me, has resulted in my business accounts being put on notice for closure! At this point, one has to start implementing contingencies, as there is now a very real chance that this ineptly implemented bank process will actually kill my accounts / business.
I'm gob-smacked by how this process has been handled, what the hell is wrong with these people? I've logged a formal complaint for the good it will do. Meanwhile, contingency planning is now in action - I can't put faith that I will receive a letter that this was all a terrible mistake. I have 8 weeks from now before my business gets killed.
If you use HSBC for business banking and receive money from all over the world, be very afraid, they are not in your corner. Diversify your business banking as a matter of priority, no one bank should hold all your company assets and payments.