Consumer complaint received 2020-12-14
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: HSBC NORTH AMERICA HOLDINGS INC. (AZ)

I recently set up a checking account with HSBC to take advantage of a cash bonus offer that offers 3 % cash back on all direct deposits for 6 months, up to {$100.00} reimbursed per month. In order to avoid banking fees, I was required to have direct deposits totaling at least {$5000.00} per month. As such, I scheduled direct deposits in the amount of {$2500.00} every two weeks, which came directly from my employer payroll. Once the first deposit went through, I requested a bank to bank transfer from HSBC to my primary bank, XXXX ( The XXXX XXXX  ). HSBC froze my account after I submitted the request, stating that it was a security measure. I was passed around to three different departments, all asking me to verify the same 4 pieces of information each time. This includes sending me a code via text message, and repeating it back to the phone rep. It became very clear that HSBC was purposely creating roadblocks for me to access my money because they want to keep it in my account as long as possible. Doing this practice with all their clients would obviously result in material amounts of fraudulent interest being earned by HSBC on client funds which are intended to be elsewhere by the clients. After threatening legal action, I was finally put in touch with someone who unlocked my account. Two weeks passed, and another direct deposit came in. I was able to process my bank to bank transaction of {$2500.00} with no issue. Fast forward another two weeks ( the third direct deposit ) when I attempt the same exact bank to bank transfer for {$2500.00}, and they lock my account again. This time, they made it even more difficult to speak with the proper person ; passing me around three times ( verifying over and over ) only to disconnect my call. When I called back and demanded to speak with a supervisor, I was put on hold for more than 30 minutes before I gave up. I called back and finally spoke with someone who was willing to help after another 20 minutes of being passed around. This person stated that they would notate my account that I would be making the same {$2500.00} bank to bank transfer every two weeks. She then proceeded to release my transfer. 5 business days later, the {$2500.00} popped back up in my HSBC account, with the note that it had been rejected by my other bank. I contact The XXXX XXXX ( XXXX ) immediately. They were happy to help, and stated they had never been notified of the transfer request, that the rejection did not come from them. They also stated a previous bank to bank transaction from HSBC had been processed, so the rejection doesn't make sense. Please note that HSBC required me to verify The XXXX XXXX  account by depositing two small amounts and withdrawing them. I state this because there's no way account and routing information could have been mis-entered because it was already verified and stored in HSBC 's system. I called HSBC again, this time with an attorney on the line. Upon notifying the HSBC representative of this, I was promptly hung up on. I called back, this time avoiding any conversation concerning my attorney. The person wanted to verify the standard multitude of non-necessities. It was at this point that it became very clear that HSBC is engaged with fraudulent money handling practices because after being put on hold for 10 minutes to " pull up my account '', the representative came back and asked, " why are you withdrawing your money so soon after the direct deposit? '' Please keep in mind, at this point I've gone through initial two-factor authentication, I've confirmed my SS number, and I've read back the code that was sent to me in real time text message. How does HSBC have the right, now that I've more than validated my identity, to ask what I'm doing with the money? This is crossing a line, and should clearly have legal ramifications. I advised the representative that I wanted to close my account immediately. The representative advised that HSBC would not close my account until I answered his question about what I'm doing with my money. At that point I terminated the call. I am not unable to access my money in HSBC because I refuse to tell them what I'm doing with my money. This is clear cut fraud on the part of HSBC. They are purposely putting up roadblocks for their clients to access their money in an effort to prolong their own interest accrual. I have taken advantage of cash back bonus offers with XXXX, XXXX XXXX, and XXXX  XXXX XXXX, and never once had issues accessing my money. Customer service should be there to service customers, not create barriers to liquidity of liquid funds.