Consumer complaint received 2021-04-02
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: CO
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
I have a HSBC ( online only ) checking and savings account. I have have XXXX teenage children that I'm a single parent to overseas that I support remotely by sending funds to them regularly as I live and work here in the US. 

[ A fact to know about this HSBC ( called 'direct ' ) account is that there is no debit card or check book available. it is purely online and the only way you can get funds into it and out of it are through ACH transfers with other banks. So it would be normal practice to move money into/out of the account as regularly as you needed to. There is no rule or terms of use for the checking account that state there is a limit on how much you can move or how often ] I have an overseas HSBC account also, so I first sent the funds using a wire transfer from the HSBC US account to my account with HSBC overseas, this worked but the fees and commission were way too high. 

I then tried another route that I'd seen online, similar to XXXX XXXX, it's called 'XX/XX/XXXXa money transfer service with very low fees vs regular banks. So then, I sent funds via ACH transfer using my HSBC account about a month ago to a domesticXX/XX/XXXX - XXXXXX/XX/XXXXXX/XX/XXXXso they could convert my XXXX dollars into the foreign currency to send to my children. This worked at least twice, then a few weeks ago I did the same transaction ( it got frozen from HSBC ) and I got a phone call from the HSBC fraud team asking me about the transaction, I told them the situation, they said that's fine I can proceed. A day later I get another call to ask me more detail. In the meantime, the money I transferred XXXX {$5100.00} XXXX was cancelled by HSBC and returned back to my account. When I called them up to ask why they had blocked my transfer they started asking me very detailed questions about where the money came from where it was going to. I was on the phone for almost 1.5 hours, I was so exhausted by the end of it. They then asked who XXXX was, I said it was a XXXX XX/XX/XXXX that did my money transfer, they couldn't grasp this concept and became highly suspicious. I suggested we call them, so we got on a three way call with XX/XX/XXXX me and HSBC, where XXXX verified yes, the account with them was indeed in my name. HSBC seemed satisfied by this bu then started asking me very detailed personal questions about my income, where the money was coming from, each payment into and out of the account for last few months, they interrogated me to a much more personal and deep level that I've ever had from any outside body, even law enforcement. They then said my accounts would be frozen with no access, my calls were recorded they would go through them in detail and they would launch an investigation into it all. They said they wouldn't give me any time frame when it would be resolved. They caused me such distress from the deep interrogation, like I was doing something illegal, criminal and the fact they would control if/when I'd have access to my funds again. 

I have just tried to access the funds two weeks on and the accounts are still locked. [ The latest call was made on XX/XX/21 at XXXX ] I had to speak to the fraud team again and I was on the phone for 45 mins, with them asking me almost the same information again as before, probing into my background, questions like " where did the money come from '', " what are using it for '', " what are these other accounts where you've moved money in/out '', highly personal information which is none of their business whatsoever. They then said were awaiting documents from me before they could proceed. They did not tell even tell me this was a requirement from the first incident! They wanted proof that I owned the other bank accounts. They said they would send an email to me asking for bank statements and I said ok that's fine but as it's PII data I can only send it via a secure encrypted link/portal and the fraud team assistant said yes it was a secure link for sure, he said it twice in the phone call. I work in data privacy so I said I could only send them the statements via a secure encrypted link so my privacy was safeguarded. The email came through and it as a regular email, no additional security was offered, so he had deceived me. I had no option at all ( as I need access to those funds quickly ) but had to respond to the email with my bank statements attached and potentially risk a man-in-the-middle attack and identity fraud by sending it unencrypted, 'in the clear ' On a second note I'd like to launch a separate complaint and they should be investigated, on their poor information security handling practices and potentially compromising customer 's personal data : they should know better than this being a financial institution and adhering to XXXX, they are breaking GDPR and CCPA data privacy regulations by not offering to secure my sensitive personal data ( PII ) in response them. I am an expert in this area, this is my specialism and can testify that what they asked me do in sending my data this way would breach data privacy frameworks and regulation. 

I needed those funds to help support my children overseas, pay for their food, lodging, child maintenance and school fees. By freezing my account totally for almost two weeks now XXXX and they said it could be more weeks still ) it's caused huge stress in not being able to get the funds to my children, where there is a great need. 

I have been treated in a highly unfair and despicable manner. I've been made to feel like a criminal. I've never received such probing, interrogative and demeaning service from any financial institution before. 

I am very upset about the whole situation with of feeling of being powerless against a major financial institution and them having my earnings frozen ( it's my money, I feel they've taken it extremely unfairly and I want what's mine back - they have absolutely no right to do this and treat me this way ). So I can't do anything with that money when it's needed as a matter of urgency for the reasons described above - my children. 

I have never been in trouble with anyone before, I have never had any debts, I volunteer and do so much for others and the community around me and am a decent law abiding citizen. I feel this is a morally unacceptable behavior and a major injustice especially when in the end it's more young children that ultimately pay the price of them not getting the funds on time!

Company response to consumer: Closed with explanation