Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

HSBC imposes restrictions on large cash withdrawals (Bank Run Fears in UK)
BBC News ^ | 24 January 2014 Last updated at 14:59 ET | Bob Howard

Posted on 01/26/2014 9:33:19 AM PST by SkyPilot

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A year before, he had withdrawn a larger sum in cash from HSBC without a problem.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

(Excerpt) Read more at bbc.co.uk ...


TOPICS: Business/Economy; Government; News/Current Events; United Kingdom
KEYWORDS: bankrun; cash; cashwithdrawals; collapse; economy; hbsc; hsbc; unitedkingdom
Navigation: use the links below to view more comments.
first 1-2021-4041-50 next last
Related: A Bank Run in London? Debt Rattle 2014


1 posted on 01/26/2014 9:33:19 AM PST by SkyPilot
[ Post Reply | Private Reply | View Replies]

From yesterday:

China's Great Wall of Credit Begins to Crumble

2 posted on 01/26/2014 9:37:01 AM PST by SkyPilot
[ Post Reply | Private Reply | To 1 | View Replies]

To: SkyPilot

These depositors thought their savings (excess capital) was safe on deposit. Actually the bank lent that capital mostly to government who promptly spent it on consumption. That is what happens when as a culture you deficit spend, print money, suppress productive capitalism with rules, regulations and taxes and consume more than you produce. A liquidity crisis is simply a guise of poverty.


3 posted on 01/26/2014 9:43:06 AM PST by allendale
[ Post Reply | Private Reply | To 1 | View Replies]

To: SkyPilot


4 posted on 01/26/2014 9:43:26 AM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Chode

http://truthingold.blogspot.ca/2014/01/something-ominous-may-be-coming-at-us.html?m=1


5 posted on 01/26/2014 9:44:16 AM PST by jester221 (Stupid pills, with all due respect, should have an obama-proof lid)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Chode

This seems to be an effective way to start a full scale bank run...


6 posted on 01/26/2014 9:45:37 AM PST by GOPJ (Liberals never let something as petty as being 100% wrong stop them - Blood of Tyrants)
[ Post Reply | Private Reply | To 4 | View Replies]

To: SkyPilot

This is just to prevent bank runs on printed money. Woe to those that want to remove their gold.


7 posted on 01/26/2014 9:46:26 AM PST by C210N (When people fear government there is tyranny; when government fears people there is liberty)
[ Post Reply | Private Reply | To 1 | View Replies]

To: jester221
something wicked this way comes...
8 posted on 01/26/2014 9:51:24 AM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
[ Post Reply | Private Reply | To 5 | View Replies]

To: allendale

If I were asked the answer would be “I’m going to spread it out on my bed and roll around on to achieve sexual gratification. I’ll return it afterwards for deposit into my account.”


9 posted on 01/26/2014 9:52:05 AM PST by glorgau
[ Post Reply | Private Reply | To 3 | View Replies]

To: SkyPilot

Have their water cannons been delivered yet?


10 posted on 01/26/2014 9:52:25 AM PST by Irenic (The pencil sharpener and Elmer's glue is put away-- we've lost the red wheelbarrow)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SkyPilot

The Millbury Savings Bank is still in business operating from the same location.


11 posted on 01/26/2014 9:52:55 AM PST by Lonesome in Massachussets (In the long run, we are all dead.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: jester221

Over the years, I’ve read that at least some banks in the US question customers who want to make large withdrawals, particularly if the customer is older. They do so in an effort to protect their customers from being scammed.

Based on the story, that’s what this UK bank is doing, although they seem to have gone overboard.

Connecting it to a possible “bank run” seems a little excessive based on what is presented. If an effort to prevent bank runs is suspected, the story ought to cover more than one bank.


12 posted on 01/26/2014 9:53:17 AM PST by KrisKrinkle (Blessed be those who know the depth and breadth of their ignorance. Cursed be those who don't.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: GOPJ
kind of self fulfilling prophecy
13 posted on 01/26/2014 9:53:55 AM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Kartographer

Ping for your prep distro list.


14 posted on 01/26/2014 9:54:34 AM PST by SwankyC (Democrats and Republicans agree, govt coercion is OK if it fits your idea of whats OK)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SkyPilot

He was overly compliant and cooperative with their attempt to steal his money (yes, “steal”; if they took it under a pretense and won’t give it to him what is that but theft). His response should have been “Then close my account right now. This second. I want every penny.”


15 posted on 01/26/2014 9:55:09 AM PST by Still Thinking (Freedom is NOT a loophole!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: C210N

they could not provide evidence of why they wanted it.
Did not know this was in the contract how about its my money and because I want it


16 posted on 01/26/2014 9:57:53 AM PST by ronnie raygun
[ Post Reply | Private Reply | To 7 | View Replies]

To: SkyPilot

If you can’t get cash out, why don’t folks simply write out a check or make a large credit card purchase for something of value, real estate, PMs etc?
It is rather strange that the bank is promoting an image of potential instability and weakness by going after those that just want a few thousand in cash. This behavior would only encourage widespread suspicion and lead customers to start broad based withdrawals and transfers, and discourage potential depositors and investors.
A bank’s image s everything. Once it’s seen as corrupt, it will fail. Now that the government is seen as corrupt, and banks are seen as extensions of the government, look for bank runs to accelerate on any bit of bad news or difficulty.


17 posted on 01/26/2014 10:02:22 AM PST by grumpygresh (Democrats delenda est. New US economy: Fascism on top, Socialism on the bottom.)
[ Post Reply | Private Reply | To 2 | View Replies]


We need your help to keep the lights on.
FR is funded solely by contributions made by
liberty loving people who enjoy and use it.

Every donation counts no matter how big or small.
If you can donate $5, $10, $20, $100 or more,
it would be greatly appreciated.

Free Republic 1st Quarter Fundraising Target: $85,000 Receipts & Pledges to-date: $23,737
27%  
Woo hoo!! And the first 27% is in!! Thank you all very much!!

18 posted on 01/26/2014 10:15:28 AM PST by RedMDer (Happy with this, America? Make your voices heard. 2014 is just around the corner. ~ Sarah Palin)
[ Post Reply | Private Reply | View Replies]

To: allendale; Chode; GOPJ; C210N; Irenic; glorgau; Lonesome in Massachussets; Kartographer; SwankyC; ..
Check this out - from Drudge front page:

Prove it: Bank blocking some customers from making large withdrawals without ‘evidence’ of spending need

HSBC says it’s all done in the name of customer protection. "The reason being we have an obligation to protect our customers, and to minimize the opportunity for financial crime.”

This is a national and international trend. If you take out cash, the banks are now asking "What do you want it for?" Whatever happened to "Mind you own business - it's my money."

Governments are now imposing more and more control on every aspect of our lives.

Cash provides some freedom from the Big Brother observance of every single transaction in our entire lives, but I think cash is very rapidly on its way out. For months now I have seen people paying for things using their smart phones.


19 posted on 01/26/2014 10:29:41 AM PST by SkyPilot
[ Post Reply | Private Reply | To 3 | View Replies]

To: SkyPilot
"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.

Because it is my (expletive) money is all the (expletive) evidence the bank is ever going to get.

20 posted on 01/26/2014 10:33:17 AM PST by LegendHasIt
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-50 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson