The Association of Mortgage Intermediaries (AMI) has slammed HSBC for abusing its position and attempting to steal business from other banks by forcing homebuyers to consider its own mortgages.
Mortgage Solutions understands Woolwich requires applicants for its mortgages who have an online current account with another bank to provide bank statements endorsed by a stamp and a sign-off from a branch.
However, HSBC will not provide this stamp and sign-off for its online current account customers unless they agree to meet with one of its in-branch mortgage advisers.
Several brokers contacted Mortgage Solutions to say they were angered at the opportunistic practice from the lender, who has been vocal in its negative attitude to brokers.
Chris Cummings, director-general at AMI, says HSBC was showing a lack of respect to its customers and to the broker community.
He said: "If a customer is asking their bank to provide such a simple service like this and the bank uses that request to their advantage to try to sell their own products, it is abuse.
"It is unfair if a customer has gone through the process of finding a mortgage through an intermediary and HSBC aims to puts itself between a customer and an intermediary for their own gain. They should respect the wishes of their own customers."
John Malone, managing director of PMS, says: "I think it is sharp practice and is another removal of the broker position. Enough is enough. It may not be illegal but it is certainly unfair for a bank to be doing this. Brokers will suffer."
However, a spokesperson for HSBC, says: "It is perfectly good business sense to ask your customers whether they have considered your mortgages. It is perfectly possible and acceptable for our branch staff to discuss mortgage options with our customers."
More to follow...
| Comment | AMI accuses HSBC of broker 'abuse' |
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Is it HSBC or Woolwich at fault?
Yep OK hate HSBC but why does Woolwich (sorry Barclays) need the verification anyway?! Its just one big numpty allowing another to take advantage of the market. Has Woolwich turned off its credit search facilities then which makes them have to do this, I think not. The worm is turning and the adviser community will have the last laugh.
Posted by: www.MortgageShop.com
HSBC - No Surprises There Then
I once got caught by this exact scenario with a client. He went in to get the bank statment and got "collared" by the HSBC staff. They proceeded to undercut the rate through our lender but for a higher fee. Client said "yes please" and away he went. Trouble for him was that the purchase involved a vendor gifted deposit which HSBC do not accept. He had explained this to the bank adviser and she said they could do this. Once I got wind of it I urged him to request she confirm in writing they accept a vendor gifted deposit for his future sake. He requested. She would not give it! She checked and I get a phone call from my client to say, "You were right. They cannot do it". He then comes back to me a week later and asks me to reinstate the previous app that I had cancelled. Sometimes I wish I had let it go but for the sake of the client I did not. HSBC are not the only lender who's attitude stinks just now. They are simply one of several, but don't get me started down this road.
Posted by: DB
Condition of authorisation
That all FSA regulated intermediaries should be able to place business with all FSA regulated companies on behalf of their clients. This should become compulsory by the time commission from providers is banned.
Posted by: Ken Durkin
Shabby Abbey
Abbey also deliberately undercut the rate they offer brokers . I sourced a good deal for a client and he decided to go with my Abbey recommendation only to look at their website to find a cheaper direct to lender rate and went direct. If every lender did this you could scrap the broker community and use go compare!
Posted by: David Quarrell
Treating Customers Fairly
Is it only IFA's whon have to treat customers fairly? Are banks and their staff exempt? Surely the FSA will crack down on this.....
Posted by: Chris Pinkney
Its business
Its fine, its business, its what any IFA would do, what's the fuss. Simply put, if HSBC wish to have a short term memory, we the IFA's need to have a long term memory. Don't slag them off, just educate your clients. At this time they think they have the IFA market about to be exterminated due to the RDR, they are wrong, and the storm clouds are building. Banks do not offer service, value, honesty and are not trusted by clients. They just want what is best for the shareholders and their bottom line profit. Where are the good fixed rates that would benefit the clients, O no, have a 3/base tracker for x number of years as we will make more money. The regulator will be increasing pressure on the banks as their profits return and they are not able to cry wolf.
Posted by: Martin Evans
On-going lack of industry leadership
I think HSBC are a soft target for the so-called industry "leaders". At least HSBC are honest enough to say they don't value broker distribution unlike two faced Santander, HBOS, NatWest etc but all we have seen from our leaders has been a letter asking us to be gentle with their paymasters.
Posted by: Kevin Fowler
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HSBC Abuse
Why am I not surprised at this? HSBC considers it's current account customers as "it's" customers. ie; As if it owns them. Clients have the freedom to purchase services, without HSBC using their usual unfair sales tactics on them.
Posted by: IFA