Consumer complaint received 2019-08-24
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: PA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Problem using a debit or ATM card

Complaint:
I have a joint HSBC checking account with my daughter, who lives out of the country. On XX/XX/2019 her wallet was stolen from her ( cross body ) purse on a bus in XXXX. She immediately told me and I helped her contact all the entities that might be impacted. Included in the wallet was an ATM debit card from the HSBC account which she had never used. There was a note on the card with the PIN, which I had given her ( and told her to take off! ). There were no translators available by the time she tried to go the same night, so the next day, XX/XX/2019, she went to a local police station and made a theft report. She included the HSBC ATM card in the report listing what was in the wallet that was stolen. Meanwhile the card was used 5 times in XXXX at ATM ( s? ) for withdrawals adding up to {$1000.00}. 

I contacted HSBC on her behalf on XX/XX/2019 to contest those withdrawals as unauthorized. A few days later, dated XX/XX/2019, she received a Fraud Claim Form to complete. I filled it out for her, but it required a signature, so I called HSBC who said I could sign it for her. I did so, sent it back and attached the police report. A day later, but dated XX/XX/2019, we received a letter that the case had been closed and the transactions were found to be authorized! 

I then called again, requested the documentation as the letter stated would be provided, asked that the case be reopened in light of the police report, which apparently hadn't been received when it was closed. Then followed weeks and months of calls and emails during which I was promised many things, including a provisional credit of the {$1000.00}. 

I contacted the Assistant VP who had originally opened my account, XXXX XXXX, via phone ( XXXX ) and email ( XXXX ) on numerous occasions to ask his help. I called the Fraud department ( XXXX ) numerous times and each time was told it was being investigated, but no, I couldn't speak to the investigator, etc. 

I did some research of my own on the CFPB website, and brought to XXXX 's attention Comment 6 ( b ) -2 of Regulation E which specifically addressed writing the PIN on a piece of paper kept with a debit card, and that it does NOT impose greater liability than is permissible under Regulation E. I asked XXXX to forward this to the investigator and Legal Dept and was told he did so. 

After I was finally promised the provisional credit by XX/XX/XXXX, by a supposed supervisor who gave his name as XXXX XXXX ( XXXX ). I sent a very detailed email to XXXX outlining what I had been told, what I had said and what I was requesting he do. That was sent on XX/XX/2019. I have to this date, XX/XX/2019, never heard from XXXX again. 

Having gotten no response from XXXX, I contacted the Vice President and Senior Branch Manager, XXXX XXXX, XXXX We had a conversation in late XXXX, XXXX XXXX ) and I forwarded to him all the numerous emails I had sent to XXXX XXXX ( XXXX ) He was much better about keeping me informed. Ultimately I received a voicemail from XXXX on Friday, XX/XX/XXXX asking me to call him back. When I did so within 30 minutes, he told me he " regretfully '' had to tell me that the case had been denied again, but that he was authorized to " split the difference '', and offer me {$500.00}. He said he had " taken it to senior leadership '' and they were in agreement that HSBC was not responsible due to " negligence in having the PIN with the card ''. I was, of course, furious. 

I asked if he had spoken with the Legal Department and what their answer was to the law I had cited. He said they had. I asked for the documentation supporting their decision, which I had still never received about the first letter. I made it clear I wanted specific legal authority, including citations, and the facts supporting the decision. I told him that they were making a discretionary decision that was NOT supported by the law. I also asked for the name of a higher level person to whom to appeal. 

Meanwhile I told him I would think about his offer. He sent me an email on XX/XX/XXXX stating that he had spoken to the " fraud and client escalation teams and a letter is being drafted to you explaining the reason for the denied fraud claim ''. 

About a week later I received a letter dated XX/XX/2019 with the EXACT same wording as the first letter, with the name of XXXX XXXX ( it was not signed ). There was no explanation of the declination, no supporting documentation or law cited. There was NOTHING supporting the denial of the fraud claim. Again it said we could contact the sender, at the same number as the first letter. 

I have all the emails I sent, and sent to me. I have the XXXX Police Report, a copy of the Fraud Claim Report I submitted, as well as the two letters denying the claim. I also have names and dates and times of all the many calls I made. I am happy to provide any and all information needed.

Company response to consumer: Closed with explanation