HSBC Issues Statement
HSBC came under fire last week when it was revealed that they had prevented some of their customers in England from withdrawing large amounts of cash. The reason that HSBC refused the withdrawals? The customers couldn't provide adequate proof as to what the reason for the withdrawals were.
Huh?
Take Stephen Cotton for example. Cotton tried to withdraw £7,000 from his savings account to pay back a loan to his mother. Instead of immediately handing over the cash, the bank asked Cotton what the money was for.
Cotton was taken aback by the question, but told the bank that the purpose of the withdrawal was to pay back his mother. HSBC decided that they needed more proof, so they actually had the audacity to ask Cotton's mother to provide a letter that would back up Stephen's story.
There was other reported incidences that were similar to this one. The story quickly went viral, which led HSBC to issue a statement this weekend.
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HSBC said that "cash presents more risk than other payment methods", and that the bank needs "to monitor particularly closely movements of cash in and out of the banking system. This is why we ask our customers about the purpose of large cash withdrawals when they are unusual and out of keeping with the normal running of their account."
HSBC, which reportedly implemented their new cash withdrawal policy last November, said that they "may have asked these customers to show us evidence of what the cash is required for". However, they went on to say that failure to provide evidence should not result in the transaction being refused.
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So - even after presenting mountains of identification to prove that you are actually you, HSBC still has the audacity to ask you what the withdrawal is for. Ok, as if that wasn't enough, they want proof that backs up your story.
According to HSBC, however, if you tell the bank to mind their own business, they will still process your withdrawal. Ok...
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What do you think of this story? Do you think that HSBC was justified in implementing this policy? Should banks be able to ask you what your are planning on doing with YOUR money?
Source: HSBC.co.uk - Statement of Large Cash Withdrawals
Filed under: General Market News
