Consumer complaint received 2019-12-13
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: NY
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Card was charged for something you did not purchase with the card

Complaint:
In late XXXX  and XXXX, I kept receiving phone calls from HSBC local branch worker XXXX XXXX  ( who I never worked with or known before ) to ask me to update my checking account and talking about investment opportunities. 
On XXXX, I went to XXXX  local branch to meet with XXXX  XXXX, I updated my current checking account to a premium account and applied for a new credit card there with XXXX  XXXX. but I never received the new credit card. 
On XX/XX/2019 XXXX XXXX, I received a fraud alert message on my phone from HSBC, saying there is a {$1100.00} transaction on my card in XXXX, asked me to confirm if it was my purchase. I replied NO immediately and followed their procedure to call their fraud center to report the fraud and I told the receptionist that I never received the credit card. The receptionist confirmed that he acknowledged it, and the card was closed, and there would be a new credit card sent out. 
Around 5 minutes after our call with HSBC, I got another fraud alert message from HSBC, saying that there was a transaction of {$380.00} at XXXX 's clothing, and asked me to confirm if it was my purchase. I replied NO immediately and called their fraud center again, the receptionist said he couldn't see the transaction under my credit card, but he could see it under a new debit card. Until then I know that there was a new debit card was sent to me as well. As I was never notified in any form that a new debit card would be sent out. And I told him that I didn't receive the new debit card, the transaction is fraud, and also I asked if there were any other purchases made on the debit card, and I was told the {$1200.00} transaction at XXXX as well. I reported fraud immediately, and the receptionist said he acknowledged it and closed the debit card, and a new debit card would be sent out to me. 
On XX/XX/2019, I received the denial letter from HSBC regarding my debit card fraud transaction of {$1200.00} saying it was authorized and I should be responsible for the charge. ( For the debit card case I filed a cfpb complaint on XX/XX/2019 as soon as I got the deny letter, complaint case id XXXX ). 
On XX/XX/2019, I received the denial letter from HSBC regarding my credit card fraud transaction, saying that I have to be responsible for the {$1100.00} charge according to the cardmember agreement and disclosure agreement, and the balance has to transfer to a new account number. 
On XX/XX/2019, I called their fraud center, asking for an explanation of the denying, and the guy who claimed named to be XXXX and claimed to be the supervisor of the fraud investigation team told me that for the credit card {$1100.00} transaction as it is chip read, the physical card is used, that's why I have to be responsible. And regarding the debit card {$1200.00} transaction, at first, he told me that since the pin for the debit card was used, that is why it was my authorized transaction. I told him first we never received the debit card and never know about the pin, and according to our bank statement, as of XX/XX/2019, our account balance is only {$200.00}, the fraud transaction is {$1200.00}. How could that get approved and pass-through? And then he just changed what he said and told me that the investigator just got back to him, the {$1200.00} debit card transaction didn't use the pin, it was chip read as well. Since the physical card was used, so it is my authorized transaction. 
This is nonsense, I followed the procedure and reported fraud as soon as I saw the fraud alert messages. And since HSBC detected the {$1100.00} transaction, but they still let the transaction posted to my account on the next day which is XX/XX/2019. Is their fraud detection just a joke? The {$1200.00} transaction also posted to my checking account after we have enough account balance as our direct deposits went in on XX/XX/2019, which is the next day. 
Also, I tried to file a police report in the local police department, and the local police department needs affidavit forms from HSBC. We made a bunch of calls to the HSBC fraud team to ask for them, they always claimed that they sent it out, but I never received it until on XX/XX/2019 my wife and I spent more than an hour with XXXX ( HSBC fraud investigation team ) on the phone to make sure that he asked the investigator to send it over via email. 
After I filed the police report with our local police department using the affidavit ( fraud claim form ). The police report number is XXXX and the police department is XXXX Pct XXXX XXXX XXXX, XXXX NY XXXX. The detective assigned to this case XXXX XXXX needs the exact time for all fraud transactions in order to retrieve the video from the department stores to see who made the purchases. Even the detective complained to me that HSBC is very unresponsive, he couldn't get the response from HSBC. 
Today XX/XX/2019 I tried to call HSBC fraud team 4 times to ask for the exact time of the fraud transactions, One of the receptionists named XXXX told me that he needs to get one of the specialist to compile the receipt of the fraudulent transactions and they would get back to me today, but I never got call back, and the second receptionist told me that they don't have the exact time of the transactions, they only have the amount and the location of the fraud transactions. And finally, on the 4th call, the representative told me but for which I think the time is not accurate, cause she told me the {$1100.00} was made on XX/XX/2019 XXXX XXXX, but clearly my fraud alert message from HSBC was XX/XX/2019 XXXX XXXX. hence the transaction should on or before XX/XX/2019 XXXX XXXX. And she told me the {$1.00} transaction was also at around XX/XX/2019 XXXX XXXX. And they didn't have the {$380.00} transaction detail as it wasn't posted to my account. 
Additionally, I asked HSBC the below questions via email to their investigation team : 1 ) since I didn't receive the card, how the new credit card and the debit card got activated?

2 ) if activation was via phone, what the phone number was used?

3 ) if activated online, what the IP address was used to activate?

4 ) what information was provided to activate the cards?

5 ) As we already responded to the fraud alert message and followed the procedure, why the transaction still gets posted and we should hold responsible. Is HSBC fraud detection just a joke? 
HSBC never replied to me regarding my questions and confusion above. 
Definitely HSBC has huge problems internally in its procedure ( the new card activation process and fraud transaction detection process etc ), Due to HSBC 's negligence and problematic procedure and their attitudes towards the consumers, there might be a lot of existing victims and potential victims like me. Due to HSBC 's problematic procedure with new card activation and fraud detection, fraud transactions process, there will be more and more victims of fraudulent transactions if they use HSBC cards. I have been with HSBC for more than 15 years. And as of now, I know how messy the HSBC internal system is and how HSBC treated their premium account holders. It is really a nightmare to deal with HSBC. I need a fair resolution for this case.

Company response to consumer: Closed with explanation