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HSBC Bank USA - Read This Before Doing Any Business - Account Holds - Bad Business Practices

Darinox
Valued Member

Re: HSBC Bank USA - Read This Before Doing Any Business - Account Holds - Bad Business Practices

I agree. I must say that I haven't heard such stories for other N.A. banks but understand that YMMV.

 

I want to reiterate that HSBC is being extra vigilant pertaining to account holds. I did not want this to sound like I am being targeted solely that's why I have researched and read dozens of consumer complaints and according to them, this does not appear to be unusual for them. In my opinion, it's rather bizarre to put such draconic measures into effect such as a complete lockdown for something as simple as making a CC payment or depositing a check with amounts or payments equal less than $2,000 per deposit/payment. 

Message 21 of 39
Meanmchine
Super Contributor

Re: HSBC Bank USA - Read This Before Doing Any Business - Account Holds - Bad Business Practices

i would have been cancelling my accounts back in August


3/2016 EX 644 CK-TU 642 CK-EQ 660 WalMart- 671.
>12/2020 CCT EX 821 TU 826 EQ 840


"Survival kit contents check. In them you'll find:

- One forty-five caliber automatic
- Two boxes of ammunition
- Four days' concentrated emergency rations
- One drug issue containing antibiotics, morphine,
vitamin pills, pep pills, sleeping pills, tranquilizer pills
- One miniature combination Russian phrase book and Bible
- One hundred dollars in rubles
- One hundred dollars in gold
- Nine packs of chewing gum
- One issue of prophylactics
- Three lipsticks
- Three pair of nylon stockings.

Shoot, a fella' could have a pretty good weekend in Vegas with all that stuff."

Major Kong (Slim Pickens) in Dr. Strangelove 1964
Message 22 of 39
longtimelurker
Mega Contributor

Re: HSBC Bank USA - Read This Before Doing Any Business - Account Holds - Bad Business Practices


@Darinox wrote:

I agree with you no one is perfect and this is certainly true for most big banks; however, focusing on the "average Joe" is just a head scratcher. I mean come on; we are talking about deposits far less than the required federal reporting threshold. Others have experienced the same issues based on the complaint data. You know, I am just stating the facts! 


When I, I mean my friend, I mean hypothetically, launder money for my/his/hypothetical narco-terrorist kingpin friends, the money doesn't come as a transfer of $200M from a DrugsForGunsInc account, it can come as lots of small transactions from a whole network of mules.   So "average Joe" accounts do need to be looked at.   As well as the general trickle down impact of regulations referred to by @FinStar 

Message 23 of 39
AndySoCal
Valued Contributor

Re: HSBC Bank USA - Read This Before Doing Any Business - Account Holds - Bad Business Practices

@Darinox 

 

The deposit amounts stated in the article apply to all customers with those amounts.  This should happen at any bank with a deposit > 5,000. I have had holds placed an deposits one was from a closed account at another bank and I had been with the bank several years.   It is not you, HSBC is following stated rules and regulations this would apply to any customer.

FICO 8 EX 794 TU 794 EF 805
Discover IT Opened 9/1990 CL 19,000, JC Penney Opened 10/2008 CL 4700, US Bank Cash Plus Opened 8/2010 CL 12000, Citibank Double Cash Opened 5/2015 CL 11,100, Chase Freedom Flex Opened 09/2020 CL 10,500
Message 24 of 39
Aim_High
Senior Contributor

Re: HSBC Bank USA - Read This Before Doing Any Business - Account Holds - Bad Business Practices


@AndySoCal wrote:

@Darinox 

 

The deposit amounts stated in the article apply to all customers with those amounts.  This should happen at any bank with a deposit > 5,000. I have had holds placed an deposits one was from a closed account at another bank and I had been with the bank several years.   It is not you, HSBC is following stated rules and regulations this would apply to any customer.


OP wasn't posting about the typical "Holds" that probably all of us have experienced with various lenders over the years when having a new account, for larger deposits, or for certain types of checks.  He was talking about his accounts being completely blocked and him being locked out of access for other purposes.  That's a whole other situation and something I've never experienced in over 40 years of personal banking. 

 

I love the part in the October 14 letter that states "Your HSBC Cash Rewards Mastercard was blocked ONLY TWICE on August 19 and August 24."  So only twice in less than a week is not a big deal to HSBC apparently.  Smiley Tongue

 

I understand that HSBC has a due diligence to follow banking regulations to ensure transactions are legitimate.  For whatever reason, they seem overly sensitive to OP's transaction history, perhaps due to nature of his family business employment.  But their behavior seems extreme and I agree with @Meanmchine that I would have just shut down banking with them a long time ago.  It's just business, but I need a bank that I can depend upon.  There are too many other banks that would be easier to work with, or at least provide better customer service through such a verification.  For OP's situation, I wonder if a smaller regional bank or local credit union might be a superior choice to a large multi-national bank like HSBC.



Length of Credit > 35 years; Total Credit Limits > $500K
AoOA > 27 years (Jun 1993); AoYA (Aug 2020); Gardening since 08/15/20.
* Hover cursor over cards to see name & CL, or press & hold on mobile app.
Message 25 of 39
Remedios
Moderator

Re: HSBC Bank USA - Read This Before Doing Any Business - Account Holds - Bad Business Practices

You think regional banks and small CUs are in general easier to deal with?

 

That accomplished what subprime coffee couldn't. It woke me up. 

Since I've been at work for roughly 5 hours, that's a good thing 

Undead Danny Trejo looks strangely like dead Danny Trejo, who looks exactly like alive Danny Trejo. Thanks, Netflix!
Message 26 of 39
Aim_High
Senior Contributor

Re: HSBC Bank USA - Read This Before Doing Any Business - Account Holds - Bad Business Practices


@Remedios wrote:

You think regional banks and small CUs are in general easier to deal with?

That accomplished what subprime coffee couldn't. It woke me up. 

Since I've been at work for roughly 5 hours, that's a good thing 


Glad I was able to be of service. 

silly_face_emoji.jpg

Of course, we're still talking about financial institutions here, so it's all relative.  And it's dependent on the lender in question.  That said, smaller lenders tend to be more personable and treat their customers a little less like just a number, IMO.   That little credit union in Alabama, AOD FCU, has been praised on My Fico for great customer service and I've experienced the same.  A locally-based FI is more likely to have someone with some clout nearby that you can talk to in person if there are issues you can't resolve over the phone or email.  But generalizations are just that.  Chase is also a huge bank and I've been generally pleased with them.  There's always exceptions on both ends of the spectrum.



Length of Credit > 35 years; Total Credit Limits > $500K
AoOA > 27 years (Jun 1993); AoYA (Aug 2020); Gardening since 08/15/20.
* Hover cursor over cards to see name & CL, or press & hold on mobile app.
Message 27 of 39
Remedios
Moderator

Re: HSBC Bank USA - Read This Before Doing Any Business - Account Holds - Bad Business Practices


@Aim_High wrote:

@Remedios wrote:

You think regional banks and small CUs are in general easier to deal with?

That accomplished what subprime coffee couldn't. It woke me up. 

Since I've been at work for roughly 5 hours, that's a good thing 


Glad I was able to be of service. 

silly_face_emoji.jpg

Of course, we're still talking about financial institutions here, so it's all relative.  And it's dependent on the lender in question.  That said, smaller lenders tend to be more personable and treat their customers a little less like just a number, IMO.   That little credit union in Alabama, AOD FCU, has been praised on My Fico for great customer service and I've experienced the same.  But generalizations are just that.  Chase is also a huge bank and I've been generally pleased with them.  There's always exceptions on both ends of the spectrum.


 

Right, so it's not the lender's size that determines the level of difficulty.

It's between how stringently lenders adhere to regulations, and often it's related to the nature of business and source of income. 

 

If a lender gets slapped with regulatory fines, they tend to become hyper-vigilant, then relax over time, get slapped again, tighten the rules again.

It's the lending ouroboros, but most individuals are able to avoid it or we would be reading about banking apocalypse daily.

 

That smiley looks just like me when spring comes, scotch broom does it's thing, and my left eye decides it doesn't wanna. 

 

 

 

 

 

 

Undead Danny Trejo looks strangely like dead Danny Trejo, who looks exactly like alive Danny Trejo. Thanks, Netflix!
Message 28 of 39
FinStar
Moderator

Re: HSBC Bank USA - Read This Before Doing Any Business - Account Holds - Bad Business Practices


@Remedios wrote:

@Aim_High wrote:

@Remedios wrote:

You think regional banks and small CUs are in general easier to deal with?

That accomplished what subprime coffee couldn't. It woke me up. 

Since I've been at work for roughly 5 hours, that's a good thing 


Glad I was able to be of service. 

silly_face_emoji.jpg

Of course, we're still talking about financial institutions here, so it's all relative.  And it's dependent on the lender in question.  That said, smaller lenders tend to be more personable and treat their customers a little less like just a number, IMO.   That little credit union in Alabama, AOD FCU, has been praised on My Fico for great customer service and I've experienced the same.  But generalizations are just that.  Chase is also a huge bank and I've been generally pleased with them.  There's always exceptions on both ends of the spectrum.


 

Right, so it's not the lender's size that determines the level of difficulty.

It's between how stringently lenders adhere to regulations, and often it's related to the nature of business and source of income. 

 

If a lender gets slapped with regulatory fines, they tend to become hyper-vigilant, then relax over time, get slapped again, tighten the rules again.

It's the lending ouroboros, but most individuals are able to avoid it or we would be reading about banking apocalypse daily.

 

That smiley looks just like me when spring comes, scotch broom does it's thing, and my left eye decides it doesn't wanna. 

 


Right.  (I'm writing this before Aim_High revises their post again) 😜

 

It all depends on that lender's audit results with the respective regulatory agency.  Some lenders already have robust measures in place, but in this dynamic environment where crypto currencies exist, alternative 'payment' tools exist, patterns or methods that circumvent or exploit current controls, etc., even those robust measures need to be updated or revamped in a variety of cases.  

Message 29 of 39
Aim_High
Senior Contributor

Re: HSBC Bank USA - Read This Before Doing Any Business - Account Holds - Bad Business Practices


@Remedios wrote:

@Aim_High wrote:

@Remedios wrote:

You think regional banks and small CUs are in general easier to deal with?

That accomplished what subprime coffee couldn't. It woke me up. 

Since I've been at work for roughly 5 hours, that's a good thing 


Glad I was able to be of service. 

silly_face_emoji.jpg

Of course, we're still talking about financial institutions here, so it's all relative.  And it's dependent on the lender in question.  That said, smaller lenders tend to be more personable and treat their customers a little less like just a number, IMO.   That little credit union in Alabama, AOD FCU, has been praised on My Fico for great customer service and I've experienced the same.  But generalizations are just that.  Chase is also a huge bank and I've been generally pleased with them.  There's always exceptions on both ends of the spectrum.


Right, so it's not the lender's size that determines the level of difficulty.

It's between how stringently lenders adhere to regulations, and often it's related to the nature of business and source of income. 

 

If a lender gets slapped with regulatory fines, they tend to become hyper-vigilant, then relax over time, get slapped again, tighten the rules again.

It's the lending ouroboros, but most individuals are able to avoid it or we would be reading about banking apocalypse daily.

 

That smiley looks just like me when spring comes, scotch broom does it's thing, and my left eye decides it doesn't wanna. 


I had to look up scotch broom as we  don't have that where I live!  But we have other similar irritants.  Good comparison with the smiley!  Smiley Tongue

 

While size isn't a direct correlation in all cases, it seems to me that the larger the lender, the more likely one would experience these kinds of issues.  Larger lenders are probably more likely to have been used for shady transactions by crooks because they are more widespread geographically and there is at least a perception that any individual transaction will be less questioned due to the shear volume of them.  A small regional bank in Nebraska or a credit union in Kentucky is probably less suspicious.   Suggesting a change to a smaller lender was just trying to offer some assistance in choosing one more favorable to him.

 

It's true that most individuals are able to avoid it, but it's unfortunate that people who may have completely legitimate actitivies get targeted by some lenders simply due to the nature of their income, spending, or lifestyles.  It seems that OP hasn't been doing anything illegal but the bank's policies continue to disrupt his life. 

 



Length of Credit > 35 years; Total Credit Limits > $500K
AoOA > 27 years (Jun 1993); AoYA (Aug 2020); Gardening since 08/15/20.
* Hover cursor over cards to see name & CL, or press & hold on mobile app.
Message 30 of 39
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