As everyone in the UK is well aware, this month saw the first run on a UK bank for 150 years. This frantic dash to withdraw cash came despite the soothing reassurances of senior figures from the bank, the Bank of England and subsequently the government.
It was not surprising that many customers ignored these calming words. In order to be reassured you need to have some level of trust in the person or institution doing the reassuring. Nobody trusts politicians or the BoE bods that put up interest rates, so their words obviously counted for nought. And trust in the banks themselves is certainly not what it was.
For example, my own bank - the HSBC, which I know for a fact has spent fortunes on CRM - rarely seems able to make up its mind what to say to me. Its representatives appear to say whatever comes into their heads.
On holiday in Italy last week, I found I could no longer use my debit card. The call centre worker I called at my own considerable expense said I should have informed the bank before using the card abroad, that the card had been flagged as a fraud risk as a result, that it would have to be cancelled as soon as I returned to the UK, and that if I wanted to have hassle-free use of my new card abroad in future I would have to upgrade to Bank Account Plus. Which involves a monthly fee, of course.
I was told I could withdraw £100 (about €140) in cash but after that no more. So, given the spiralling price of pasta, everything had to go on my credit card for the rest of the trip.
On my return I called the bank to arrange delivery of a new debit card. However, another representative in the same anti-fraud team I spoke to previously informed me that my card didn’t need to be cancelled, that the fraud alert was nothing to do with me having used it abroad and was instead due to “intelligence gathering” that indicated my card had been cloned. He told me to change my PIN and carry on with the old card. Which I have done.
All in all a very confusing, annoying and not in the least bit reassuring experience. It has left me wondering whether the HSBC knows its APR from its elbow.
Talking of APR, I also recently emailed the bank to point out that new customers were being offered a much higher interest rate on their savings than loyal old customers like me. I wondered if I could possibly benefit from the higher rate.
No prizes for guessing whether it said, yes certainly sir, or bugger off and be grateful for what you’ve got.
I think I’ll withdraw the lot and put it into Zopa...
Update, December 2007:
My debit card expires at the end of the month, so I called HSBC to find out when the replacement would arrive. It had already been dispatched, apparently, long enough ago to be considered lost or stolen. The bank's representative said she would cancel the errant card, and issue a replacement - which I asked to collect from my branch. It would take five working days (a week, in short) to arrive.
The next day I tried to pay for groceries with my debit card. The card was declined, and a security guard arrived rather promptly to ask if I could prove that my name matched the name on the card. Fortunately I could. A subsequent exploratory attempt to get cash from an ATM resulted in a swallowed card and confirmed suspicions. HSBC had marked the card in my wallet lost or stolen, not its missing replacement. A further call to HSBC about this incompetent mistake resulted in plenty of apologies but no actual action. No, I couldn't have upfront interest waived on any cash withdrawals on my HSBC credit card, the replacement card could not be hurried up, and no, I could not have any financial compensation.
I picked up the replacement card on schedule after the week's wait with a rather empty feeling in my wallet.
Another week later I found a note on the doormat, from the bank's delivery agent, asking me to call about the card that they hadn't been able to deliver...
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