HSBC Account closures and credit damage??

[otterbreath]

Thanks to this great site HSBC have offered me a settlement at about 90% of that claimed without needing to file a moneyonline claim - its a few quid short of the full amount but not much so im tempted to settle, this isnt the issue.

 

My concern is that they will close my account and so damage my credit rating - the amount offered is a few hundred quid short of my overdraft.

 

A) If they close the account do I automatically get a bad credit rating or will it only be if I cant pay off the overdraft within the agreed time?

 

B) Would it be worth adding it a bit in the agreement before I sign it stating - I only agree to this settlement on the basis that no retaliation is taken ie my overdraft will not be cancelled or account closed etc?

 

Any help appreciated (I have looked elsewhere for advice on this but cant find any) and good luck to all those doing battle with the monster that is HSBC.

[Spiceskull]

Hiya - welcome to the forums.

 

It is difficult to know whether or not the bank will close your account for making a claim on unlawful bank charges. My gut instinct is that they won't close the account for your first claim. However, it would be prudent to open a parachute account to be on the safe side.

 

Regarding the offer - if you look around the forums, and read some of the concluded cases, you will see that HSBC will pay out the full amount if threatened with court action. They know the bank charges are unlawful, that they cannot defend them in court, so they don't.

 

Regarding the credit rating - a lot depends on how spiteful the bank feels towards you. Again, my gut instinct is that HSBC will not do anything untoward unless seriously provoked. Your claim is just one of the many semi-automated processes going through the system, and is not likely to be flagged for retaliatory action.

 

As for putting conditions on accepting the refund of penalty charges - don't even consider it. It is your money, if they can offer 90%, why can't they offer 100% without conditions. Again, if you read around it is a case of sticking to a timetable, and only giving ground when the bank coughs up the full amount.

 

Take a breather, familiarise yourself with the next stages of your claim, then get your money back.

 

Good luck.

 

See the steps I took to get my bank charges back.

Spiceskull v HSBC.

Thank you Consumer Action Group.

Read my blog.

 

[sparkey1]

Don't accept 90%. 100% only.

 

If you have an overdraft with them, you pay an agreed rate of interest that makes you a profitable customer. Why would they want to close your account when you are simply asking for illegal charges back. If they didn't charge them illegally you wouldn't be asking for the money back.

 

Also if you have a maestro card, every time you make a transaction you are making them money as the retailer is charged for accepting it (about 25p a transaction.)

 

100% or you will take them to court. That is your answer.