Prove it: Bank blocking some customers from making large
withdrawals without ‘evidence’ of spending need
By Eric Pfeiffer
If you bank at HSBC in England,
don’t plan on making any large cash withdrawals. At least not without a good
explanation. Or, maybe even a permission slip.
That’s because a previously
unannounced change in banking policy is blocking some customers from making
large withdrawals without “evidence” explaining why they need the money from
their accounts.
The policy affects customers
attempting withdrawals for amounts as little as £5,000 ($8,253).
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,” HSBC said in a statement. “However, following feedback, we
are immediately updating guidance to our customer facing staff to reiterate
that it is not mandatory for customers to provide documentary evidence for
large cash withdrawals, and on its own, failure to show evidence is not a
reason to refuse a withdrawal. We are writing to apologize to any customer who
has been given incorrect information and inconvenienced."
The change in approach comes after
the BBC aired reports from multiple HSBC customers who said they were denied in
their recent attempts to make cash withdrawals.
Banking customer Stephen Cotton
says he attempted to withdraw approximately $11,000 to repay a loan from his
mother but was blocked from doing so.
"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,” he
told the BBC. “They wanted a letter from the person involved."
Cotton says the bank wouldn’t even
tell him how much he was allowed to withdraw under the new policy, which was
not announced to customers when taking affect last November.
"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.' "
In the U.S. there have been rumors of
similar restrictions that major banks such as Citibank have denied. After the
massive security breach at Target retail stores in December, JP Morgan did
place a temporary limit on how much cash customers could withdraw from Chase
ATM’s at Target stores and how much they could spend on their debit cards at
one time. But that limit has since been removed.
A Conservative member of the British Parliament said the change in
policy “infantilizes the customer.” However, the head of retail at the British
Bankers Association defended the policy.
"I can understand it's
frustrating for customers,” Eric Leenders told the BBC. “But if you are making the occasional large cash withdrawal,
the bank wants to make sure it's the right way to make the payment."
BBC
Margaret
Jay was a producer & presenter for the BBC, and is a member of the House
of Lords.
Note: House of Lords
is a house in the British Parliament.
BBC
is the governing body for the BBC Trust.
Christopher
Patten is the chairman for the BBC
Trust, was a member of the House of
Lords, and a co-chair for the International
Crisis Group.
George
Soros is a board member for the International
Crisis Group, the founder & chairman for the Open Society Foundations, was the chairman for the Foundation to Promote Open Society, a founding
sponsor for the Institute for New
Economic Thinking, and a benefactor for the Human Rights Watch.
Open
Society Foundations was a funder for the Human Rights Watch, the Atlantic
Council of the United States
(think tank), and the Institute for
New Economic Thinking.
Foundation
to Promote Open Society was a
funder for the Human Rights Watch.
Syrian
Electronic Army reportedly hacked the Human
Rights Watch, and the BBC.
Bashar al-Assad
is supporting the Syrian Electronic Army
a hacker group, and the president of Syria.
John J.
Studzinski is a director at the Atlantic
Council of the United States
(think tank), a director at the Human
Rights Watch, and was a co-head of investment banking for HSBC Holdings plc.
Rachel
Lomax is a director at the HSBC
Holdings plc, and was the deputy governor for the Bank of England.
Adair
Turner was a director at the Bank of
England, and is a governing board member for the Institute for New Economic Thinking.
Anatole Kaletsky
is a governing board chair for the Institute
for New Economic Thinking, and the editor-at-large for the Times of London.
Winston
Churchill II was a foreign correspondent for the Times of London, a member of the House of Commons, and Winston
Churchill’s grandson.
House of Commons
is a house in the British Parliament.
Winston Churchill
was Winston Churchill II’s
grandfather, the prime minister for the United Kingdom,
and a member of the Order of Merit.
Nelson Mandela was
an honorary member for the Order of
Merit, and the founder & honorary elder for The Elders.
Martti Ahtisaari
is a member of The Elders, and the chair
emeritus for the International Crisis
Group.
Kofi
A. Annan is the chairman for The
Elders, and a board member for the International
Crisis Group.
Lakhdar Brahimi
is a member of The Elders, and was a
board member for the International
Crisis Group.
George
Soros is a board member for the International
Crisis Group.
Christopher
Patten was a co-chair for the International
Crisis Group, a member of the House
of Lords, and the chairman for the BBC
Trust.
House of Lords
is a house in the British Parliament.
BBC
is the governing body for the BBC Trust.
Margaret
Jay was a producer & presenter for the BBC, and is a member of the House
of Lords.
1 comment:
Inexcusable - absolutely inexcusable seizure of private assets. i don't give two pollywogs in a plastic bag why. The money is deposited in bank's accounts by depositors with implicit trust that those funds will be available on demand. This is the backbone of the entire concept of banking and trade. To interfere in these transactions when the person has proven who they are, is simply illegal seizure, and if they change the laws to make it legal then the very tenants of currency exchange and trust in the currency must be questioned. This is a highly dangerous incursion into people's private affairs, a very dangerous moves for the banking industry to make and a extremely dangerous policy for any government to support.
Post a Comment