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A year before, he had withdrawn a larger sum in cash from HSBC without a problem.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 ...
ping
Best answer yet!
They are acting in line with what they feel their role is and not, in my view, doing so as a matter of protecting the elderly. Here is why:
Back in the 80’s when I was stationed in the UK, we set-up a checking account with the local Barkley’s Bank.
With the check-book came a ‘bank guarantee card.’ This card had an amount stamped on it.
When you purchased something with a check you had to show the store your bank guarantee card. The bank would only guarantee the amount printed on the card and any amount over that would be the responsibility of the store, not the bank, if the check bounced.
In addition, there was a calendar on the back of the checkbook, and when you wrote a check the store would mark that date on you checkbook calendar. They did this to identify to other stores that you had already wrote a check that day and might be over the ‘guarantee’ limit.
This process was dictated by the bank and the bank basically looked at you are an irresponsible child when it came to your own money.
So, IMHO, what they are doing now is in line with what they did years before: They are not doing this to protect the elderly or whoever, but to protect themselves.
Major Chinese banks raise deposit interest to maximum
http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1202&MainCatID=12&id=20140125000103
Trying to hold onto cash?
Four or five years ago I wanted to withdraw 5,000 cash from my BoA account, they would only let me take out part of it—2,500? 3,000? (don’t recall the exact).
My husband was with me and so he just withdrew the remainder from his account and I transferred it back to him.
I also noticed while in line that an elderly man was taken out of the bank teller line and shown to the ATM.
I still don’t understand why that happened. Somebody told me that you need to contact the bank ahead for such a withdrawal.
Guess I’m just a silly hick because I figured it’s my money and I can withdraw it whenever I want. It’s not like the bank didn’t have it.
/shrug...I don’t understand the world today.
Legally, once you deposit funds in a bank, it is NO LONGER your money. It is the bank’s, and you just have a lien on it, similar to the mortgage they hold, on the home you own.
Legally, once you deposit funds in a bank, it is NO LONGER your money. It is the bank’s, and you just have a lien on it, similar to the mortgage they hold, on the home you own.
Legally, once you deposit funds in a bank, it is NO LONGER your money. It is the bank’s, and you just have a lien on it, similar to the mortgage they hold, on the home you own.
Legally, once you deposit funds in a bank, it is NO LONGER your money. It is the bank’s, and you just have a lien on it, similar to the mortgage they hold, on the home you own.
But if you say that you want to buy drugs, maybe HBSC will be more. sympathetic. You would after all help fund HBSC’s operations.
http://www.cbc.ca/news/business/hsbc-s-1-9b-money-laundering-settlement-approved-by-judge-1.1377272
Legally, once you deposit funds in a bank, it is NO LONGER your money. It is the bank’s, and you just have a lien on it, similar to the mortgage they hold, on the home you own.
Legally, once you deposit funds in a bank, it is NO LONGER your money. It is the bank’s, and you just have a lien on it, similar to the mortgage they hold, on the home you own.
Interesting story, thanks for providing it. I didn’t see anything in the writeup, though, as to what the Chinese bank interest rate was, only that it was 10% higher. Any idea what their effective rate is?
Read the part about surrendering title to your cash. You are essentially an unsecured creditor.
True - and just think how "secure" your 401K or IRA really are.
People think there would have to be all sort of hoops for the government to jump through before that would happen, and they even believe the courts will stop them. It will never even get to the courts if there is a big enough "crisis."
Yup.
Update:
Furious Backlash Forces HSBC To Scrap Large Cash Withdrawal Limit
Years ago, there were only "flags" thrown up if you were frequently withdrawing or depositing in excess of $10,000. Today, that threshold can be zero. Just as the NSA can run millions of phone searches using spy software, the banks and the government "see" everything.
I still don’t understand it or maybe I should say I don’t like it. hahaha
I hope the government gets cataracts.
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.