Licensee blasts bank over rise in interest rates

By Noli Dinkovski

- Last updated on GMT

Related tags: Small business, Business

Haydn Williams says he expects to have to pay £400 more this year
Haydn Williams says he expects to have to pay £400 more this year
A Welsh licensee has hit out at HSBC after the bank doubled interest rates on two business overdrafts.

Haydn Williams, freeholder at the Old White House in Conwy, North Wales, said he expects to pay around £400 more this year after the bank notified him that interest rates on his overdraft had changed from 4% to 9.9% over the base rate.

According to a letter sent by HSBC, the increase was calculated after the bank reviewed his account activity and assessed his “level of risk”.

However, Williams disputed the suggestion that there had been any change in his business circumstances and claimed that repeated attempts to contact his local branch manager after an initial meeting in November have been unsuccessful.

“We have been in business for 20 years and recently have not exceeded our overdraft limits or had payments returned,” he said. “All our mortgage and small business loan payments have been made promptly.”

He added: “It could be the case that, although HSBC has publicly committed itself to supporting small businesses, the licensed sector is one that is not the case.”

A spokesperson for HSBC said: “While we are not able to comment on individual customers, we can confirm that we take a range of factors into account when assessing the suitability and pricing of products for our business customers.”

Related topics: Other operators

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