Unfair Treatment at the hands of HSBC

[MRSO63]

Hi, I'm new and, until yesterday, when I read your Announcement about BCOBs, I didn't even know I was legally entitled to fair treatment by a bank!

 

In 2005 my sons and I took out a loan with HSBC to fit out and start a restaurant. As planned I took out a 60% mortgage on my house(interest only) to complete the startup. On the plan we were due to have paid everything back in three to five years.

 

We negotiated an additional loan in 2006 as we were starting to run up costs.

In 2007 I needed to go to the bank again. I had rewritten the business plan with actuals and you could see that if we had additional money we would be turning the corner at the end of 2007. The manager I'd always dealt with agreed in principle, then disappeared off the face of the earth.

 

Too many weeks later after numerous enquiries HSBC said he had gone on 'sickness leave' and there was no record of our discussion or the promise so we had to start again. I was turned down. Not only that, they sent someone from a team called special measures or similar to 'help' me. His 'help' included a threat that if I didn't go to an administration firm he would close the account: also that because he was a specialist all my charges would now be increased.

I went along to the firm he recommended who said they couldn't help me, the only route was bankruptcy.

 

For various reasons this was not an option so I managed to mortgage the rest of my house.

For their own reasons HSBC wanted my business closed. I was an old customer and immediately prior to this business loan, had successfully borrowed, used and paid back a £480,000 short term loan. I was also in parallel running another small business with an overdraft and business loan and had been with First Direct since it started. So it was nothing to do with my history, which had been impeccable.

 

The manager who 'went sick' had been working alongside me and helpfully advising, but once he disappeared the bully boy tactics started.

I did not go bankrupt but will have to work until 70, at which time I lose the roof as I sell up to pay the mortgage off.

 

While the above sorry tale was happening, I was obviously subject to the usual practices of bouncing payments, charging for that, then going overdrawn, then charging, then bouncing etc etc. They also threatened to plunder my other accounts which I rapidly changed.

 

Is there anything I can do - or is it all too late?

Edited February 17, 2013 by Conniff

[citizenB]

I would first send a Subject Access Request to the bank - this is a request for ALL data in respect of your financial dealings with the bank.

 

Once you have all the information you can look through it and see if the bank has provided any insight to what you have experienced. I am not quite sure what you should actually be looking for in your circumstances, but certainly some idea of why the bank behaved the way it did.

 

There is a draft request in the CAG library, at the top left hand of each screen. You will need to send £10.00 with the request and they have 40 calendar days to comply. Hold off sending anything for the moment and I will alert others on the site team who might have some ideas of anything specific you might need to request in order to help you get to the bottom of this.

[citizenB]

Have you read the BCOBs articles ? They are linked in Green in my signature.

[dx100uk]

god...

 

you cetaily need to at least get all the docs surrounding their specialist and the company he refered you too

 

sounds like he was moonlighting.

 

who were they?

 

dx

[BankFodder]

It isn't too late to take action but you should understand that BCOBS is only applicable from November 2009. Before that, you would have to rely on COBS which I think is effective from 2004??? - needs checking.

 

The main difference from your point of view is that if you bring a complaint under BCOBS then you have a direct right of action in the courts for unfair treatment.

 

Under COBS - you would have to say that a breach of COBS amounted to a breach of contract and complain on that basis. In practical terms, there shouldn't be a lot of difference but pst-2009 is much neater and more aggressive.

 

Another problem is that if you brought a legal action, it would be of a fairly high value which would take you into the multi-track and this means huge costs if you lose.

 

Because it would be a multi-track case, HSBC would be unscrupulous of pouring in every possible resource to dominate you and to bully you into submission.

You have to realise that the bank would not be worried about the money. They would merely want to crush you - and so you would be up against an adversary which was not litigating for sensible business reasons.

If you lost your case, then your only option would be bankruptcy.

[MRSO63]

Have you read the BCOBs articles ? They are linked in Green in my signature.

Thank you. Have the template. Have read your articles but predate BCOB so thought I might not be covered.

[MRSO63]

god...

 

you cetaily need to at least get all the docs surrounding their specialist and the company he refered you too

 

sounds like he was moonlighting.

 

who were they?

 

dx

Begbies Traynor, Exeter

[MRSO63]

It isn't too late to take action but you should understand that BCOBS is only applicable from November 2009. Before that, you would have to rely on COBS which I think is effective from 2004??? - needs checking.

 

The main difference from your point of view is that if you bring a complaint under BCOBS then you have a direct right of action in the courts for unfair treatment.

 

Under COBS - you would have to say that a breach of COBS amounted to a breach of contract and complain on that basis. In practical terms, there shouldn't be a lot of difference but pst-2009 is much neater and more aggressive.

 

Another problem is that if you brought a legal action, it would be of a fairly high value which would take you into the multi-track and this means huge costs if you lose.

 

Because it would be a multi-track case, HSBC would be unscrupulous of pouring in every possible resource to dominate you and to bully you into submission.

You have to realise that the bank would not be worried about the money. They would merely want to crush you - and so you would be up against an adversary which was not litigating for sensible business reasons.

If you lost your case, then your only option would be bankruptcy.

Oh dear. So things haven't moved on at all then! But there must be a difference between a complaint and a legal action, surely?

[dx100uk]

Begbies Traynor Group - Insolvency Practitioners in Exeter ...

[noddy997]

The manager dealt with you who went on sick, left the notes on the system surely.

 

I had been offered a reduction offer which I accepted but misplaced the letter. Now, when I went into HSBC the frontline staff including the Assistant manager could not find the notes of the offer being made. However, when I finally spoke to the Branch Manager he somehow found notes on my account/system and said the offer had been made.

 

Problem is with big companies they have endless amounts of systems, and a poor way of utilising them and notes are placed all over the system.

[MRSO63]

I don't have anything in writing about the promised loan, that's the problem. But I do have the 'sick' manager's name and a diary entry of our meeting.

If I send a SAR will they not just cherry pick which bits of info they send and say they don't have the rest?

Also, from the template, not quite sure where to send it - to the bank's registered address or the branch I was dealing with?