Consumer complaint received 2019-07-26
Product: Checking or savings account — Checking account
Issue: Opening an account — Didn't receive terms that were advertised
Company: HSBC NORTH AMERICA HOLDINGS INC. (PA)

Complaint:
In late XXXX or early XXXX of 2019, I received a piece of mail at my home from HSBC inviting me to open a new HSBC Advance checking account. The mailer advertised a {$370.00} " welcome deposit '' upon completion of the following qualifying activities : " -Open your new HSBC Advance checking account by XX/XX/2019 ; and -Deposit a minimum Qualifying Balance^2 of {$10000.00} or more in New Money^3 in combined checking and savings accounts within 30 calendar days of account opening^4 ; and -Maintain at least the minimum Qualifying Balance for 90 calendar days from the date you deposited the minimum Qualifying Balance '' The footnotes referenced above are reflected on the reverse of the mailer. The document goes on to state " You will automatically receive the {$370.00} Welcome Deposit in your new HSBC Advance checking account approximately eight weeks after completing all qualifying activities. It's that simple. '' On XX/XX/2019, I visited the website referenced on the mailer ( XXXX ), entered my " personalized code '' as printed on the mailer, and submitted an application to open a new HSBC Advance checking account. On XX/XX/2019, I received confirmation that HSBC had established my new account. On or about that date, I initiated a transfer of {$10000.00} cash from an XXXX XXXX savings account to the new account at HSBC. On XX/XX/2019, the transfer of {$10000.00} posted to the new account at HSBC. This account was the first one I have ever opened with HSBC, and it remains my only account therewith. 

Based on the terms of the offer I received from HSBC, I noted for my records that I would satisfy the " 90-day requirement '' on XX/XX/2019 and that the welcome deposit should appear eight weeks from that date, on or about XX/XX/2019. I will note that from the point of initial funding on, I never debited funds from the HSBC account and at no point did the balance fall below {$10000.00}. To this day, the account balance exceeds {$10000.00}. 

On XX/XX/2019, I logged into the HSBC mobile app to check the activity in my HSBC account and noticed that the welcome deposit had not posted. At that time, I initiated a live web chat with HSBC customer service to inquire as to the status of the welcome deposit. I referenced the mailer I received promoting the offer, provided the foregoing timeline of account opening and funding, and was told to allow 3-5 business days for review of my case. I was told that I would receive a written response via " Bank Mail, '' a secure means of electronic correspondence through the HSBC client portal. 

By XX/XX/2019, XXXXve business days had passed since my web chat with HSBC customer service. I placed a call to HSBC Advance customer service on the afternoon of XX/XX/XXXX and explained my situation. I was told that there was an error with the query submitted as a result of my web-chat interaction and that they would need to investigate further. I was told that they would call me back the next day ( Friday, XX/XX/XXXX ) or early the following week. 

On Wednesday, XX/XX/2019, I received a call from the same representative with whom I had spoken by phone at HSBC Advance Customer Service. The representative reported that the analyst looking into my situation confirmed that I opened the account from the correct landing page to qualify for the welcome deposit. The analyst requested the personalized code I entered with my application. Fortunately, I saved the original mailer that contained the code in question and I provided the code to the service representative. The representative told me that she would pass the code along to the analyst and that the deposit would " hopefully '' appear in two or three days. 

On Friday, XX/XX/2019, I received another call from the same representative who indicated that she had " good news '' to report : HSBC confirmed that I satisfied the qualifying activities and approved the welcome deposit. It would appear in my account after four weeks, as long as the account remains open at that time. I asked the representative why it would take an additional four weeks for the deposit to appear, given that HSBC had definitively established that I qualified for it and that it should have been issued weeks prior. The representative was unable to provide an explanation for the further delay. I indicated that the delay was unacceptable and was a further deviation from the terms advertised on the offer I received by mail. I told the representative that I intended to file a complaint with the CFPB, at which point she said that she would like to apologize on behalf of HSBC and that she would escalate the matter internally in the hope that they could expedite processing of the welcome deposit.

As I explained to the HSBC service representative, my complaint has little to do with the amount of money at hand ; my issue is with the process and what appears to be a practice of failing to pay out the promised incentive, creating numerous hurdles for the consumer to overcome once alerted to the fact that the incentive has not been paid, and needlessly delaying the payment once it has been " approved. '' Based on my experience with HSBC, I have no confidence that I will actually receive the deposit in four weeks. There is no reason why I should have had to contact HSBC in the first place, as they have established that I satisfied all of the requisite terms of the offer from the get-go. Given HSBC 's acknowledgment of that fact, I have to wonder how many other customers have been denied welcome deposits and any other targeted incentives used in marketing materials to get people to open new HSBC accounts. It is sheer luck that I retained a copy of the mailer I received containing the personalized code that HSBC requested in order to verify my eligibility for the welcome deposit, despite the fact that I was required to enter said code before I could even submit an account-opening application from the web page referenced in the mailer. I accepted the terms of this promotion and satisfied every requirement of me as the customer, including giving HSBC eight weeks after satisfaction of the qualifying activities to pay out the welcome deposit. HSBC has not held up its end of the promotion that it went out of its way to advertise, and there is no reason I should be made to wait four more weeks to receive the welcome deposit to which they acknowledge I am entitled. All the while, my $ XXXX-plus account balance at HSBC is held captive. If I close the account before the welcome deposit is paid, I forfeit any claim to it. If the balance falls below {$10000.00} at any point while the account is open, HSBC will assess a monthly " maintenance fee '' on my account, the APY on which is a paltry 0.01 %. 

I am fortunate in that I have the wherewithal to await a resolution to this matter before having to withdraw funds that would cause me to incur a monthly maintenance fee, or close the account and forfeit the welcome deposit entirely. I've spent hours trying to resolve this with HSBC to no avail, and I've kept meticulous records of every interaction I've had with HSBC in addition to retaining the original offer I received by mail several months ago. I would like a prompt resolution of my own issue with HSBC, but I am more interested in ensuring that others are not being taken advantage of as I have been. 

Thank you for your time and consideration of this complaint.

Company response to consumer: Closed with explanation