HSBC bank account frozen

[Carlykins]

My current account was frozen by HSBC over 6 weeks ago.

No notice given and despite multiple calls and complaints and visits to branch they still refuse to tell me why or give any timescale.

 

This is devastating my entire life as a self employed gas engineer with 3 young children to support.

 

I complained to Ombudsman about 5 weeks ago but still no change.  

 

All the money I have is tied up in that account including proceeds of sale of house last August.  

 

Due to exchange/complete on new purchase in a matter of days but can’t proceed without access to my funds.  

I am beyond desperate….

 

Any advice much appreciated 

[honeybee13]

Hi.

 

I've moved your thread to the HSBC forum for further advice. People should be along later.

 

HB

[dx100uk]

urm so you've tripped the money laundering A1 bot and they wont release you?

 

6 weeks is a longtime it's usually only about 10 -14 days.

 

bad idea to only have one bank account mind?

time to open a parachute account too?

 

 

[Carlykins]

I’ve no idea what bot I’ve tripped but I’m definitely not involved in any money laundering.  Just keep hitting a brick wall whenever I contact them 

[Ethel Street]

I posted this on another thread where somone had been blocked. It's relevant for your situation as well. Note that asking your branch will get you nowhere quickly. They don't know why it has been triggered or when it will be resolved either. All money laundering triggers are dealt with in a central department so contact the fraud department to chase it up. You may not learn much but try at least to get a confirmation that an actual human being is on the case and not just an AI bot.

 

Banks are prohibited by law, by the Money Laundering regulations, from telling you anything. They would be committing a crime themselves if they told you why your account had been frozen, even after they have completed their investigation and unfrozen it. They aren't even allowed to tell you that they have frozen it because of the money laundering rules, althoug people it happens to can generally work out that is the reason.

 

Search online and there are endles sites and media stories about people in your situation through no fault of their own. The advice given is always the same: there's nothing you do about it except wait until they have finished; be polite and co-operative; provide any information they ask for promptly; and there's no realistic chance of compensation because the bank has acted in compliance with its legal duty under money launderiing laws.

 

You can call them to politely enquire when you expect to get access to your money back, but don't expect an explanation.  The initial freezing of an account in most banks is by an AI algorithm not a human being so calling makes sure a real human being is dealing with it now. Are you speaking to the fraud department? Usual advice is to speak to the fraud department. Branch and call centre staff will know nothing and have no access to what's going on and can only fob you off with a standard script response.

[Carlykins]

Thank you for your reply.  I have been in contact with fraud team several times but still not getting anywhere.  Despite feeling angry and desperate I am staying polite with everyone I speak to.   It’s so frustrating as I know I’ve done nothing wrong - I could answer any query they might have - if only they would ask .. 

A solicitor told me that once it’s been frozen 42 days the bank has no mandate to keep it frozen without a court order. Unfortunately I can’t afford solicitor fee to write to bank about this .. 

[dx100uk]

you dont need a sols and i've not heard of any 42days rule???

 

so why do you think it happened?

 

are transferring large sums around or in/out of the country?

have a guess and we can help better

 

dx

 

[Carlykins]

I literally have no  idea.

 

 Definitely not transferring large sums in or out.

 

 Sold my house in August 2022 and (stupidly) left the proceeds in my current account as thought I would be completing on new property sooner.  

 

The money in my account  consists almost entirely of the proceeds of that sale.  

The only thing I can think of is that I have for at least the last 4 years  used my current account for all my business transactions- I’m a self employed plumber.

 

 I had a business account also with HSBC but never really got round to using it.  

Maybe that’s a breach of their T&C’s?  If so I wish they would just say so and it can all be sorted out .. 

 

Solicitor thought it likely that bank had sent a Suspicious Activity Report to National Crime Agency.  

 

Seemingly that agency has  42 days to respond to bank and if doesn’t do so then bank is free to unfreeze the account.  

 

I’ve no idea if that’s really a thing or not - but I’m now at over 45 days ..  

 

 

Solicitor wants £1500 + vat to write a letter of claim to HSBC.

 

 If I was sure this would do the trick I’d beg borrow or steal to pay it .. but I’m not that confident .. 

[dx100uk]

letter of claim ideas are already here and free!

you can do it yourself

but i cant see the point

 

cant see why it would be using your pers a/c instead of your bus one.

unless all that money hanging around made them suspicious.

 

might be an idea to email a complaint to hsbc ceo

sometimes that works 

this length of time for fraud to be investigated is very rare.

 

dx

 

[Carlykins]

I did email CEO a few days ago - guess I will have to wait and see if that has any effect ..  

Meant to exchange on new house purchase this week and complete next week - but obviously can’t proceed without funds ..   

Feel like I’ve tried everything I can. 

Financial Ombudsman has been much help so far .. 

[dx100uk]

FOS wont get involved.

 

dx

[Carlykins]

FOB is looking into it and has been emailing HSBC but yet ti receive a response 

 

Email to CEO has been acknowledged and says they are looking into it 

[BlueNoseBear1987]

They won't tell them either why the Account is frozen.  Just have to let them conclude their investigation.    In the mean time open a parachute account as dx hinted at.

[Carlykins]

Thank you.  Sorry if this is silly question but What is a  a parachute account?  Is it an Account at another back  to have somewhere to pay in funds if HSBC decide to close my account?  

[dx100uk]

click it!

its never a good idea to EVER have all of your income going into one account as these things do happen.

 

 

[Carlykins]

CEO's office has replied saying they are looking into it ...     I don't think I've left any stone unturned now, so will just have to wait it out I guess 

 

I do have another account with Nationwide which I've used very little over the years (but am now using more since this all started) ..  but I guess that would serve as my 'parachute' account if HSBC close my account

[Ethel Street]

Whilst this is no consolation to you personally I saw some statistics that this happened to over 900,000 people last year.  It isn't disclosed how many of them were found to actually be money launderers or criminals of some sort but I suspect a very small percentage.

[dx100uk]

good news on the other A/C well done.

never put all your eggs (money) in one basket.

 

as for HSBC now you have a contact

 

i would email back immediately putting the pressure on them.

stating your current issues with pending home sale etc and the LENGTH of time this account has been frozen

CLEARLY state that should you suffer ANY financial depravity you WILL be holding HSBC financially responsible and will, without further notice, issue a court claim for said damages, this could run to £100k due to a sale failure. 

[Carlykins]

Amazing news today .. account has been reopened!!  Apology received from HSBC about how long this has taken as should only have taken around 5 days .. not 7 weeks!!    So my email to CEO worked!  If only I’d taken that step weeks ago! 

[honeybee13]

That's excellent news but very late as you say. 

 

Good luck with the house purchase. 

 

HB

[dx100uk]

Hey glad to help 

 

Go enjoy your new home..

 

Don't forget to tell DVLA twice you've moved mind! Licence+v5c SEP letters

[Carlykins]

Will do - thanks for your help