Consumer complaint received 2024-03-28 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: MA

Complaint narrative:
The reason for this complaint is that HSBC has suspended by online banking account for no apparent or logical reason. I opened the account weeks ago which took an inordinate amount of time to do. They had requests for documentation that had to be provided before they would allow opening of the account. Once opened, I made a small deposit by the mobile app, depositing a check. The check took 10 days to clear. When I called HSBC after 5 days asking what the hold up was, I was informed that the initial funding would take the longest as they had procedures to follow. I was also told that subsequent deposits would take 2-3 business days to clear. A week passed after the initial deposit cleared and I made a second deposit via the banking app, ( Monday  XXXX, XXXX  ) This check was for a few XXXX dollars. On Tuesday morning I went online to deposit another check as it was my intent to fund the account in short order. When I tried to log on, I was met with a page that indicated that my account had been suspended and asked that I contact HSBC directly. When I contacted them via the online chat, I was told that they did not know why the account had been suspended but told me to contact the securities department for more information. I called the securities department and the individual I spoke with provided no relevant information besides indicating that this was HSBCs policy to suspend all accounts until the funds had cleared. I explained that Ive never heard of such a policy nor was that indicated in their documents. The representative ( from XXXX ), made an attempt to explain using an illogical explanation. He indicated that HSBC suspends the account so that a hacker can not go in to the account before the funds have cleared and move the funds to another account. When I pointed out the illogical nature of that comment I was reprimanded. I asked for an explanation as to how funds that have not cleared can be moved, to which the comment infuriated the representative who chastised me for the comment indicating that this was for my protection. The call was disconnected at that time. Four days later I called again and was incidentally transferred to the same securities representative. He recognized the name on the account and indicated that we had spoke a few days before. When I explained to him that I had no understanding as to why the account is still suspended, he went into the same explanation as he provided previously. He also indicated that because my account was new, that HSBC personnel would be monitoring all incoming deposits and outgoing funds. When I asked the representative why my account was to bear so much scrutiny, he indicated that this was bank policy. I told him that I took exception to this and that the bank had no authorization to monitor what I did with my funds. I also asked directly when the account suspension would be lifted, and after several additional minutes of being reprimanded once again, as they were doing this for my protection, he indicated that on the XXXX of XXXX, the funds should clear and access to my account would be restored. It is now the XXXX of XXXX and I still have no access to my account. When I contacted HSBC yesterday asking when I would be granted access, I was told that the funds had cleared but online access was still restricted and that I would have to contact securities department to request access. I explained to the representative that I was completely dissatisfied with this treatment and that I would be filing a complaint. I also expressed my dissatisfaction with HSBC restricting my access to my account without cause. I have never heard of a financial institution locking a member out of their account as deposited funds clear. I understand that the funds take time to clear and that access to those funds will take time as the clearing process will withhold those funds for a time, But being locked out of my account completely is perplexing at the very least.

Company response to consumer: Closed with explanation