Consumer complaint received 2022-05-20
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: NC
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Managing an account
Sub-issue: Funds not handled or disbursed as instructed

Complaint:
XXXX individuals jointly hold XXXX XXXX  ( Checking & Savings ), and XXXX accounts at HSBC Bank USA, located at : XXXX XXXX XXXXXXXX XXXX XXXXXXXX, XXXX FL, XXXX. The accounts holders all reside outside of the US. 
The writer and complainant, was appointed by each of the XXXX accounts holders to be the Power of Attorney ( POA ) for all accounts in XX/XX/XXXX. ( Documents attached herein ) On XX/XX/XXXX, XXXX the aforementioned accounts holders, passed away. 
On XX/XX/XXXX, a copy of the deceaseds Death Certificate was submitted via email to HSBC by way of its representative, who acknowledged receipt of such. 
Consequent email communications from the above agent as well as others ( copy of emails attached herein ) indicated to the writer that in light of XXXX of the accounts holders death, all associated accounts were required to be closed, and new ones could be opened in the names of the surviving accounts holders if they wished to do so. 
Based on knowledge about the surviving accounts holders wishes to maintain the existing accounts rather than closing them, the writer communicated such intent to the HSBC representatives. HSBC representatives responded indicating that closing the accounts was mandatory. 
The writer inquired about the reasons for the mandatory nature of closing the accounts, and further requested that HSBC supply specific language of any current Federal or State Law, which mandates such, and/or a copy of HSBC Policies pointing to internal Bank regulations to that effect. 
Between the times that HSBC Bank USA were supplied with the death Certificate, and our latest inquiry ( paragraph immediately above ), almost two months had elapsed, with multiple emails and a couple of phone communications. 
On XX/XX/XXXX, XXXX representatives reached out via email, requesting a phone call between either the writer or XXXX of the accounts holders, and an HSBC supervisor XXXX The writer scheduled a phone call for later that afternoon. 
During the phone call on XX/XX/XXXX HSBC supervisor indicated that upon consultation with their Legal Department, they had learned that the surviving accounts holders were not mandated to close the accounts, rather, the Bank merely recommended they did so. 
XXXX also indicated that procedurally ( but not legally ) HSBC could not remove the name of the deceased from the accounts, and no other individual could become an account holder instead, because HSBC establishes a maximum of XXXX account holders in total. 
The writer requested that this supervisor provided the writer with that information in writing, and he stated that -although he could not do so on Bank XXXX XXXX he would write this finding via email. An email to such effect followed ( copy attached ). 
On XX/XX/XXXX, -after consultation with the accounts holders, the writer followed up via email with all the HSBC representatives involved thus far, requesting blank copies of HSBC USA Pay on Death ( POA ) and Transfer on Death ( TOA ) official Forms. 
The same HSBC supervisor sent an email requesting a phone call to discuss this matter, which the writer declined due to her busy work schedule and other imminent time constraints. The writer suggested that the representatives present any questions or concerns regarding her request via email instead, to which Supervisor responded by inquiring the intent of the request for the POA and TOA Forms. 
HSBC representatives were informed via email that the surviving account holders had decided to retain the existing accounts, and that they further determined they would name Beneficiaries to the accounts, thus the need for the pertinent forms. 
HSBC representatives responded that this would not be possible given that all three account holders would have to sign on the Beneficiary forms, and given that XXXX of them is deceased, all required signatures could not be fully attained. 
The writer responded that because the accounts had been opened and maintained as Joint accounts, the surviving account holders have full survivorship rights to management and disposition of the accounts. The writer further requested that in the interest of time and accuracy- HSBC representatives consult with their Legal department on this matter, and report back to the account holders and this writer accordingly. 
On XX/XX/XXXX, XXXX account representative of HSBC called XXXX of the account holders to clarify and confirm the above account holders request. Consequently, XXXX XXXX representative sent an email to the aforementioned account holder, to request a copy of the deceaseds Death Certificate which had previously been provided to XXXX deposit acct representative by this writer on XX/XX/XXXX. Nonetheless, the account holder submitted an additional copy of such Death Certificate to the requester, and its receipt was acknowledged. 
That was the last communication from HSBC Bank USA. 
The writer and the surviving account holders contend that for reasons unknown- HSBC Bank USA is stalling any action or disposition that the account holders wish to exercise in regards to the accounts, thus unjustifiably impeding and delaying financial decisions with which the surviving account holders wish to proceed. 
The writer and the surviving account holders contend that any internal Bank procedural rules and/or regulations do not supersede any Federal, State, or local laws. 
The writer and the surviving account holders also contend that by preventing the surviving account holders from naming PODs and/or TODs per their own determination, HSBC Bank USA is violating Florida General Statute 655.79 which follows below : Florida General Statutes -Financial Institutions " 655.79Deposits and accounts in two or more names ; presumption as to vesting on death.

( 1 ) Unless otherwise expressly provided in a contract, agreement, or signature card executed in connection with the opening or maintenance of an account, including a certificate of deposit, a deposit account in the names of two or more persons shall be presumed to have been intended by such persons to provide that, upon the death of any one of them, all rights, title, interest, and claim in, to, and in respect of such deposit account, less all proper setoffs and charges in favor of the institution, vest in the surviving person or persons. ''

Company response to consumer: Closed with explanation