Consumer complaint received 2020-12-04
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: CA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
Checking Premier account was opened by me online via HSBC US website on XX/XX/2020. Upon opening the account, {$25.00} was deposited there from my XXXX checking account. 

During the time since opening, I made three deposits of {$5000.00} to this account ( initiated on XX/XX/2020, XX/XX/2020, and finally XX/XX/2020 - each clearing several days later ) funding it in total for {$15000.00}. During that time there was also {$0.00} of interest accrued so far. I used this account to fund my stocks trading activity via XXXX brokerage moving money into and out from XXXX account several times with no issues. 

On XX/XX/2020 after checking my HSBC Premier Checking account balance via mobile online banking app and confirming it has more than {$8000.00} available I have issued a personal check # XXXX in my own name for {$4000.00} and have remotely deposited it into my XXXX checking account via XXXX XXXX feature of XXXX XXXX XXXX. 

On XX/XX/2020 at XXXX XXXX I received an email from XXXX XXXX ( attached ) requesting me to contact HSBC Fraud Team in connection to recent activity on my account via provided phone number XXXX XXXX. Having no reason to treat this email and instructions in it as authentic I decided to contact HSBC via known to me support Live Chat to verify its authenticity ( attached ). I got a confirmation that the request was indeed from HSBC Fraud Team in relation to check # XXXX. So I made a call and talked to a person with the name XXXX, who asked me to confirm that I did indeed issued check # XXXX in my own name. Ive confirmed that and she said that the transaction is now cleared. 

Concluding that this was a one time concern, same day XX/XX/2020, I have issued the second personal check # XXXX again for another {$4000.00} in my own name and also deposited it remotely to my XXXX checking account. 

Late evening XX/XX/2020, while trying to access HSBC Online banking system via mobile app, I was surprised to see that my access has been suspended ( see attached ). I also immediately checked my XXXX accounts and discovered that check # XXXX got bounced, which created a negative balance on my XXXX checking account, causing an overdraft. To avoid overdraft fees I was therefore forced to transfer the needed amount from my other XXXX checking account to cover the negative balance. This, in turn, resulted in a balance on that account lower than necessary to be maintained in order to avoid monthly service fees of {$25.00} dollars, putting me at risk of incurring this fee in the current month of XX/XX/2020. 

The HSBC US mobile app provided the only available suggested action - to contact the bank via number XXXX XXXX, which I did immediately and after describing the reason for my call I was informed that only HSBC Fraud Team can deal with this issue and I need to call them directly at XXXX XXXX during HSBC open business hours, which are XXXX EST. 

In the morning XX/XX/2020, I discovered in my XXXX checking account that I was charged a fee of {$12.00} dollars for returned ( bounced ) check # XXXX. I called the number provided by HSBC support previously XXXX XXXX and the person who responded said that I should call XXXX XXXX instead, but they would also go ahead and transfer my call there. They failed to do so as the call got dropped after some waiting on hold and listening to music. Calling back again twice, passing identification again twice, and explaining the situation again twice, after some minutes on hold at around XXXX XXXX I was told that I have to go to HSBCs local branch. 

On XX/XX/2020 at around XXXX XXXX I arrived at the XXXX HSBC branch located at XXXX XXXX, XXXX XXXX XXXX, XXXX, was greeted by XXXX XXXX Manager Ms. XXXX XXXX, who established my identity by verifying my HSBC XXXX Checking debit card and my driving license, conducted verbal questionnaire about my recent transactions, asked me to set additional secret question/answer pair of phrases, asked me to sign a paper with what looked like an agreement to open a deposit account, but she said this is just a signature card for the bank to have my signature on file ( justifying that they did not have any since the account was opened online ) and also a W-9 form. She also made a photocopy of my driving license for the records. 

While doing that, she put me on a call with the HSBC Fraud Team via dialing on the branchs internal phone the number I was provided earlier - XXXX XXXX. After verifying my identity and looking into account info, the person ( the name was not provided ) on call has transferred this call to another person, to whom I had to explain again my reason for calling, where I am, and go through the identification process again. Having done that, this person then moved on to talk to Ms. XXXX and identify her via internal bank procedure also providing his name - XXXX XXXX XXXX. After all this hassle, Ms. XXXX relayed to me that there is nothing Mr. XXXX can do and I would have to wait another 24-48 hours until someone from some department would call me regarding this issue. Wanting some more clarity I went back to talk to Mr. XXXX myself and was informed by him that comments made by HSBC Fraud Team were cleared, but there was another comment placed by the HSBC Deposit Fraud team that prevented them from removing the suspension of my account. After asking what exactly is causing the issue I was not provided with any comprehensible explanation and referred to the HSBC Deposit Fraud Team. I asked to transfer the call to that team and Mr. XXXX seemingly did so. Another person responded to the call and after confirming to me they are indeed from the HSBC Deposit Fraud team asked me to again explain the reason for the call, put me on hold, and then with no explanation switched to the automated identity verification system. Upon going through the automated identity verification system I was unexpectedly connected to an ordinary first-line support agent to whom I explained the issue again and asked to reconnect me back to the HSBC Deposit Fraud representative. The person did so and I got connected with again another representative of the HSBC Deposit Fraud Team. I asked that representative to provide me with their employee ID or another way to identify them and received an answer I can not provide you with my employee ID or name, you just call HSBC and that is it. After another round of explaining what my issue is and being put on hold for about 10 minutes call was abruptly disconnected. This call took about 40 minutes in total and ended at around XXXX XXXX. 

After getting no progress I requested from Ms. XXXX to let me speak to her supervisor and she kindly complied. After 5 minutes of waiting I got another chance to explain the situation to Senior Branch Manager Mr. XXXX, who again could not provide me with any comprehensible explanation on what was the cause of my account suspension beyond some department in the bank placing some suspicion, this sometimes happens with first check issues and in future, you should. We discussed the current balance on the account, options available to me to try to access my funds in form of a cashier check or cash and I also got a reply multiple times from him that there is no way for me to get any documental evidence that my account has been suspended and I have no way to access my money without removing what he called special instruction on my account. Mr. XXXX nevertheless suggested trying to contact the area manager and see if maybe she on her level could remove this special instruction. He said it could take several hours for her to reply, so I decided to take a lunch break and left the branch. 

While discussing options of retrieving my funds, I believe, Mr. XXXX also resorted to the technique of trying to scare me out of such actions by warning me that there will be a CTR ( Currency Transaction Report ) filed if I choose to cash-out all my funds. 

XX/XX/2020 at around XXXX XXXX I have arrived back at the XXXX branch of HSBC again where I spoke to the Senior Branch Manager and he informed me that at XXXX XXXX he has received a response from the area manager of HSBC in XXXX California, whose name he said was XXXX ( the surname was not provided upon request ) that she can not remove that special instruction blocking my account and again he can not provide me with any evidence that my funds are made inaccessible to me, suggesting to wait for 24-48 hours until the Deposit Fraud Team will complete their review. Mr. XXXX promised that I will be getting a paper mail letter with an explanation on reasons of why check # XXXX has been rejected by HSBC within 5 to 10 business days. Strangely enough, he has also confirmed that check # XXXX has cleared successfully, although XXXX on their side has put a hold on it till XX/XX/2020, which made those funds also unavailable to me. 
I was also provided with yet another phone number of the department allegedly responsible for removing the suspension from my account - XXXX XXXX After collecting business cards of the Senior Branch Manager Mr. XXXX XXXX ( XXXX XXXX XXXX ) and XXXX Relationship Manager Ms. XXXX XXXX ( XXXX XXXX XXXX XXXX ) ( see attached ) and recording the name of an HSBC Fraud Team member who was on the call with me while at the branch - XXXX XXXX XXXX, I have left the branch and decided to try to get at least some evidence of funds inaccessibility by using ATM. I tried to perform 2 transactions : checking balance and checking withdrawal of {$20.00} and got receipts rejecting my requests and instructing to contact the card issuer ( see attached ). 

Having no other options to act on I resorted to waiting. As of XXXX XXXX on XX/XX/2020 HSBC representative, whose name was XXXX confirmed that there were no updates on the issue and I should call in close to the end of the business day on Monday, XX/XX/2020 and that by that time there definitely should be more known or resolved. 

This makes funds inaccessible to me for 5 full calendar days minimum, which is obviously unacceptable and creates unnecessary financial complications for me and my family. 

Needless to say, all of the described above events have destroyed any kind of trust in HSBC as a financial institution for me. They also triggered monetary expenses of at least {$12.00} fee for the bounced check and {$2.00} parking fee near the HSBC branch, an estimated cost of {$6.00} for 12 miles driven ( at {$0.00} per mile rate ), as well as a non-monetary burden of at least 8 hours of time and efforts spent in this process, including time for composing this comprehensive complaint. That is if not to mention the potential losses created by making {$15000.00} of my funds inaccessible to me for days.

Company response to consumer: Closed with explanation