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Is HSBC about to crash?

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hoz

http://www.bbc.co.uk/news/business-25861717

 

"Some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it, the BBC has learnt.

 

Listeners have told Radio 4's Money Box they were stopped from withdrawing amounts ranging from £5,000 to £10,000.

HSBC admitted it has not informed customers of the change in policy, which was implemented in November.

The bank says it has now changed its guidance to staff.

New rules

Stephen Cotton went to his local HSBC branch this month to withdraw £7,000 from his instant access savings account to pay back a loan from his mother.

A year before, he had withdrawn a larger sum in cash from HSBC without a problem.

But this time it was different, as he told Money Box: "When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved."

Mr Cotton says the staff refused to tell him how much he could have: "So I wrote out a few slips. I said, 'Can I have £5,000?' They said no. I said, 'Can I have £4,000?' They said no. And then I wrote one out for £3,000 and they said, 'OK, we'll give you that.' "

He asked if he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day.

Continue reading the main storyStart Quote

As this was not a change to the Terms and Conditions of your bank account we had no need to pre-notify customers of the change”

HSBC customer letter

He wrote to complain to HSBC about the new rules and also that he had not been informed of any change.

The bank said it did not have to tell him. "As this was not a change to the Terms and Conditions of your bank account, we had no need to pre-notify customers of the change," HSBC wrote."

 

More at link.

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HeyMike

This sounds illegal to me. The money does not belong to the bank, it is the man's money. I can understand notifying the bank ahead of time if you are making a large withdrawl, but having to explain your withdrawl is insane. I would withdraw all my money from the bank and explain the reason why... telling them their policy sucks.

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no one

hsbc is the worst bank i ever been with 

cant wait for them to go down 

they still owe me money lol

they close my acc long time a go and i never got the money that there was when they close it 

it wasn't much so no big deal but it did cost me few 100 euro when they close it and didnt even tell me  

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NOSOCALPINOY

What about those people who have the Premiere Account with HSBC with a deposit of at least 5 million pesos?  I can only imagine! 

 

http://www.hsbc.co.uk/1/2/current-accounts/hsbc-premier

 

  • Wealth management expertise   
  • If you have £50,000 in savings and investments, your Relationship Manager, where appropriate, may introduce you to our HSBC Premier Financial Advice Service. If you are eligible for this paid-for advice, we can discuss your objectives and goals and recommend solutions to meet your needs. Fees will apply for this service which we will discuss with you at the time

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MattFromGA

So, what is the difference between working hard your whole life to retire, only to get robbed by the banking system before you can get to it, versus spending your life smoking pot with a job as a librarian and never having the big retirement?

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Canuck Joe

they are worried about and want to limit bank runs...which is a real possibility

also big brother doesn't like people to use cash

Edited by Canuck Joe

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PeteHK

I bank with HSBC and have found them very efficient and reliable.  This post is confusing two completely different things: the bank's willingness to release funds from an account to a customer and the bank's own financial stability.  Don't see how this has anything to do with a run on HSBC.  HSBC is not about to go belly-up!

 

The problem is in the UK where banks now seem totally paranoid about money laundering and fraud.  What the HSBC spokesman says in the BBC article is that they imposed limits on withdrawals when these seemed to be abnormally large for the account concerned.  The principle may be good but it seems they should have told their customers this might happen.  They now seem to have changed their advice to bank branches.

 

I've had no problems in Cebu getting cashier's cheques at HSBC for quite large sums - they just ask what it's for and you tell them and that's ok.  It's also possible to shift quite large amounts of money around using HSBC's global transfers in their internet banking.

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NHANORAK

Is HSBC about to Crash?

 

NO, not any time soon.

 

Its the second biggest bank (measured by assets) in the world and If it goes under there will be plenty more more casino focused banks going with it. It wasn't as adversely affected in the credit crunch as other banks because of a more cautious management style. I have money in its UK banking subsidary First Direct and they are easily the best Customer Service focused company I've ever dealt with in my life. I will not be drawing out my money from that bank and will probably actually be taking out a regular savings account with them, which pays 6%.

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RogerDuMond

hsbc is the worst bank i ever been with 

cant wait for them to go down 

they still owe me money lol

they close my acc long time a go and i never got the money that there was when they close it 

it wasn't much so no big deal but it did cost me few 100 euro when they close it and didnt even tell me  

 

HSBC is the best bank I have ever been with. Fantastic service.

 

 

What about those people who have the Premiere Account with HSBC with a deposit of at least 5 million pesos?  I can only imagine! 

 

http://www.hsbc.co.uk/1/2/current-accounts/hsbc-premier

 

  • Wealth management expertise   
  • If you have £50,000 in savings and investments, your Relationship Manager, where appropriate, may introduce you to our HSBC Premier Financial Advice Service. If you are eligible for this paid-for advice, we can discuss your objectives and goals and recommend solutions to meet your needs. Fees will apply for this service which we will discuss with you at the time

 

 

This must be a UK thing as we have a Premier account through the US with a Financial Adviser and there is no fee charged for the financial adviser. There are some very good points to the Premier account. There is no charge for transfering funds from country to country, instant online transfers from country to country, dedicated area for Premier customers, dedicated contact with the bank through Relationship Manager, preferential conversion rate for Premier clients, and I have never been limited on the amount I can withdraw.

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Runian

http://www.bbc.co.uk/news/business-25861717

 

"Some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it, the BBC has learnt.

 

Listeners have told Radio 4's Money Box they were stopped from withdrawing amounts ranging from £5,000 to £10,000.

HSBC admitted it has not informed customers of the change in policy, which was implemented in November.

The bank says it has now changed its guidance to staff.

New rules

Stephen Cotton went to his local HSBC branch this month to withdraw £7,000 from his instant access savings account to pay back a loan from his mother.

A year before, he had withdrawn a larger sum in cash from HSBC without a problem.

But this time it was different, as he told Money Box: "When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved."

Mr Cotton says the staff refused to tell him how much he could have: "So I wrote out a few slips. I said, 'Can I have £5,000?' They said no. I said, 'Can I have £4,000?' They said no. And then I wrote one out for £3,000 and they said, 'OK, we'll give you that.' "

He asked if he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day.

Continue reading the main storyStart Quote

As this was not a change to the Terms and Conditions of your bank account we had no need to pre-notify customers of the change”

HSBC customer letter

He wrote to complain to HSBC about the new rules and also that he had not been informed of any change.

The bank said it did not have to tell him. "As this was not a change to the Terms and Conditions of your bank account, we had no need to pre-notify customers of the change," HSBC wrote."

 

More at link.

 

This would have pissed me off so much I would have changed bank on the spot telling the clerk to prepare a withdrawal of all my funds on the grounds of closing account.

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Jess Bartone

I was considering changing to HSBC because they have branches in both countries, and transfers between countries are free. With Phils account, no 200 p ATM charge... only about 5 dollars but that adds up over time. Will watch this space.

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RogerDuMond

I was considering changing to HSBC because they have branches in both countries, and transfers between countries are free. With Phils account, no 200 p ATM charge... only about 5 dollars but that adds up over time. Will watch this space.

 

That is another point I didn't mention. I have never had a charge on any other bank's ATM for withdrawals in the Philippines. Also in the US, HSBC rebates ATM fees charged by other bank's ATMs.

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panther

I bank with HSBC and have found them very efficient and reliable.  This post is confusing two completely different things: the bank's willingness to release funds from an account to a customer and the bank's own financial stability.  Don't see how this has anything to do with a run on HSBC.  HSBC is not about to go belly-up!

 

The problem is in the UK where banks now seem totally paranoid about money laundering and fraud.  What the HSBC spokesman says in the BBC article is that they imposed limits on withdrawals when these seemed to be abnormally large for the account concerned.  The principle may be good but it seems they should have told their customers this might happen.  They now seem to have changed their advice to bank branches.

 

I've had no problems in Cebu getting cashier's cheques at HSBC for quite large sums - they just ask what it's for and you tell them and that's ok.  It's also possible to shift quite large amounts of money around using HSBC's global transfers in their internet banking.

I can understand the laundering of money thing but this guy has been with the bank for 28 years and know him well ,to me its very strange thing to do and i,m not surprised that that people are now wondering why they are asking such questions before you withdraw money,at the end of the day its our money and if we want it then its nothing to do with the bank what you want the money for. 

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NOSOCALPINOY

Posted Today, 11:28 AM no one, on 26 Jan 2014 - 10:02 AM, said: hsbc is the worst bank i ever been with  cant wait for them to go down  they still owe me money lol they close my acc long time a go and i never got the money that there was when they close it  it wasn't much so no big deal but it did cost me few 100 euro when they close it and didnt even tell me    

 

HSBC is the best bank I have ever been with. Fantastic service.  

 

NOSOCALPINOY, on 26 Jan 2014 - 10:30 AM, said:   What about those people who have the Premiere Account with HSBC with a deposit of at least 5 million pesos?  I can only imagine!    http://www.hsbc.co.u...ts/hsbc-premier   Wealth management expertise    If you have £50,000 in savings and investments, your Relationship Manager, where appropriate, may introduce you to our HSBC Premier Financial Advice Service. If you are eligible for this paid-for advice, we can discuss your objectives and goals and recommend solutions to meet your needs. Fees will apply for this service which we will discuss with you at the time    

 

This must be a UK thing as we have a Premier account through the US with a Financial Adviser and there is no fee charged for the financial adviser. There are some very good points to the Premier account. There is no charge for transfering funds from country to country, instant online transfers from country to country, dedicated area for Premier customers, dedicated contact with the bank through Relationship Manager, preferential conversion rate for Premier clients, and I have never been limited on the amount I can withdraw.

With HSBC having your five million pesos or $100,000 in their bank, surly they will bend over backwards to serve their rich clients! I find that HSBC banks here in the Philippines are few and fair in between, where one has to rely on their ATM cards, phones calls and computers to get anything done and to get their money in their hands!

Well, each to their own banking needs! 'Different strokes for different folks"!       

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spooks

I am about to "out Myself"

 

i worked for HSBC for many years and will in the next few years be one of their pensioners, if they have not gone belly up.

 

I have noticed how badly the service standards have deteriorated and placed that down to the "Gulliver Plan" of pulling back and shrinking the balance sheet.  What I never expected was the wholesale slaughter of banking account relationships that has been unleashed on unsuspecting customers, may of long standing, pre HSBC Midland bank relationships.

 

Google   "Complaints Closed accounts HSBC" to get an idea of what has been happening.

 

I was always of the thought that if accounts are closed abruptly there are reasons and probably very good ones ...until one day it happened to me.  First week of December last year I received a "get lost Premier customer letter from HSBC Philippines"  this with several years of problem free banking with significant deposits over the years.

 

I could not get an answer as to why the three accounts had received 4 days notice of take your money and go etc. My Relationship manager whom I had never met. Confirmed that the account was in good standing and had never been a problem and That i had never caused them any concerns but he was just following instructions.

 

I asked how I was expected to make premier to premier transactions of my soon to be received HSBC pension. He advised I need to open an account but not with HSBC!

 

 I wrote the CEO and explained in detail why this was probably an oversight, it can happen at anytime.

 

Well here we are towards the end of January and I have received 5 holding letters advising that their dedicated customer service team was looking into it and Could I please be patient.  I will write yet another chaser to them next week advising that yet again they are in breach of their own customer standards that is part of their own Charter.

 

I used Internet banking to contact the UK regarding an issue on my UK accounts again over 5 weeks ago and I have received similar answers to wait etc.

 

New account prospects especially business customers are going to be asking

 

'why should I take the risk of opening a working account only to find that at any time the account can be closed for no reason'

 

The risk to business with complex financial payments systems could be catastrophic and for some that has already come to pass.

 

When customer service collapses to such paltry levels the consequences are going to filter through to the balance sheet, slowly but surely destroying the key fabric of trust. this will not lead to a crash just a continuing undermining of the foundations that may lead in that direction.

 

As for collapse; a new Financial analyst firm based in HK launched a HSBC soon to collapse scenario, thus far ignored by mainstream competitors

 

http://www.cnbc.com/id/101344158

 

The pop up  videos are not long and may be interesting

 

 

Until I experienced these issues personally I would never had too much of an issue.

 

 

I also tried to investigate how to contact HSBC Holdings the parent of their Global franchises to lodge a complaint. the scariest part of all this is that no such mechanism exists!! One would have thought that after the recent debacle in Mexico and a 1.9$us Billion fine that the parent company would have a gateway to allow flagging of concerns by the public. Instead you are referred back to the CEO of that franchise who by my experience does nothing for what ever reason.

 

The HSBC share price is now diverging from the FTSE performance in a big way and the question is still unasked as to why? let alone answered.

Edited by spooks
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