A North Vancouver strata council is joining a growing number of small-business clients across North America that are being dropped by HSBC as the international bank dismisses small-business customers in favour of bigger accounts.
The strata council for the Dogwood, a 27-unit condominium complex at 123 19th St. East, received a letter from HS BC at the end of February, stating that the council had 60 days to find a new bank.
"It's somewhat galling and seems rather punitive for a bank to basically 'fire you' as a client," said Bill MacMillan, chairman of the Dogwood's strata council.
"(The letter) definitely caused a lot of raised eyebrows at our council meeting - some higher blood pressure," said MacMillan.
The letter was dated Jan. 27 but was not brought to MacMillan's attention until close to a month later. This caused confusion over whether the 60-day moratorium has been effect since January or February, leaving the strata scrambling to find a new bank, MacMillan said.
The termination of the Dogwood's account has been a headache for the strata council, which was required to set up new payment information for its service suppliers such as plumbers, renovators, and the like, said MacMillan.
"We have to resubmit everything.. .. There's a fair bit of inconvenience and it does rub against the grain when I walk by the local branch and I see the sign on the front that says 'come talk to our friendly staff.'. .. They're basically creating a two-tier system and no one wants to be treated differently, which is what we are."
The letter came with the added inconvenience of arriving at the same time the strata organization was writing and filing depreciation reports and dealing with bylaw revisions, which is a laborious process, said MacMillan.
"(HS BC) don't really care. I believe they are handling bigger accounts and so whatever they are going to take as a hit they'll make up for with bigger clients."
The vice-president and head of media relations for HS BC Canada, Sharon Wilks, responded to comments that the bank is discriminating against smaller clients.
"We have been exiting some relationships," she said. "Our focus on the customers we continue to serve are businesses that aspire or have most of their business internationally.
"Our financial expertise is with international businesses and that is at the heart of HS BC's strategy.. .. The domestic market here is well served for domesticonly business by other banks," said Wilks.
Wilks added that the international bank would continue to offer personal chequing and savings accounts.
