Why did HSBC close my account?

I am concerned about security at HSBC and about its “Safeguard” system. I was trying to update information as required about a trust I administer that was set up by my father who died in 2003. Disconcertingly I was asked about people with a surname relating to no one connected with the trust.

There have been other hassles in my efforts to provide documents. Now the bank seems to think we are money laundering and is closing the account. I want compensation of £250 to cover postage, fuel, stationery etc and my administration fee of £10 an hour. AF, CHESHIRE

You have suffered a recent bereavement and also there have been health issues within your family.

Struggling to provide documents at your local HSBC branch you were turned away because there was no business specialist present. You then wrote and included in the letter the required trust deed and the death certificate of the person who had died and who had been a beneficiary.

Before those documents could be reviewed, HSBC issued a 65-day notice of closure as it thought you had not responded. You emailed and explained that you had.

A raft of extra information was required and was taking time to acquire. This included certified identification and address verification documents for two individuals mentioned in the trust deed. Also HSBC wanted confirmation of their nationality and tax residence status. One of these people interrupted his holiday in order to comply.

Some delays had also been caused by HSBC staff being away and changing roles. Then some documents you sent by recorded delivery were not matched with the account. HSBC now says there was no audit trail for the paper copies being scanned on arrival as is normal. Therefore it is unable to confirm or deny receipt or provide a further explanation about how this occurred.

Safeguard was developed by HSBC it says in order to protect the bank and customers against financial crime.

It said in this case it was unable to update all of the information required within its deadline and so the account was closed due to a lack of compliance.

In light of the failings and further to my involvement, it has sent you the £250 you wanted. It also sent a rather disappointing tea time hamper. You have moved banks and are happy with the service you are receiving at the new one.

HSBC said: “We would like to apologise for the service Mr F received, which was not of the high standard we aim to provide.” nothing more about this and no notification of a return was received so the account continued to run on.

Vodafone realises it was your intention to cancel so is now closing the account and removing the outstanding £316 balance.

It is making sure this episode is not reflected on your credit file and has paid £100 for goodwill.

Carphone Warehouse said: “Unfortunately there were delays in processing Ms B’s disconnection request. We apologise to Ms B that on this occasion she didn’t receive the best quality service that we always strive to provide and have offered her a gesture of goodwill, which she has accepted.” This is £200.