HSBC wil not give people their money back!

zerog

Archi_Bald wrote: »

Have you got links for that, please?

Well, cash is a promise to pay a certain number of "pounds" from the Bank of England, where a "pound" is whatever the Bank of England says it is.

When you pay cash into a bank, the BoE now owes the bank that number of pounds, and the bank owes you.

You are therefore a creditor of the bank and the bank would be defaulting on its debt if it did not pay you, however, in your contract with the bank there is no obligation for the bank to pay you in a certain form of money or on a certain timescale.

henm2

aldredd wrote: »

I would imagine this is more to comply with money laundering regulations.

The whole thing cash in and cash out is to do with money laundering regulations.

If you take an example of a large cash transaction out then if it was to say pay a builder then that can facilitate tax evasion which is one form of money laundering. By encouraging transactions in and out electronically it provides an audit trail of where the money goes and reduces but not eliminates the money laundering risk.

The bank anyhow appears to be changing tack and not insisting on documentation now in all cases for cash whether in or out of a personal account.

ALIBOBSY

Archi_Bald wrote: »

Have you got links for that, please?

Sorry not saved any links-think they were within longer discussion type threads on the whole, and I believe one involved trying to draw 1k from co-op where they were told they couldn't have the cash without arranging before hand for that size of drawing, BUT they were allowed to do a banking transfer elsewhere.

Ali x

Archi_Bald

zerog wrote: »

Well, cash is a promise to pay a certain number of "pounds" from the Bank of England, where a "pound" is whatever the Bank of England says it is.

When you pay cash into a bank, the BoE now owes the bank that number of pounds, and the bank owes you.

You are therefore a creditor of the bank and the bank would be defaulting on its debt if it did not pay you, however, in your contract with the bank there is no obligation for the bank to pay you in a certain form of money or on a certain timescale.

The question was whether you had links to posts/articles "on here and other forums suggesting other banks are also making it harder to draw cash over counters or limiting withdrawal amounts", as you mentioned.

I would genuinely like to see them because I hadn't heard of such restrictions before.

Archi_Bald

ALIBOBSY wrote: »

Sorry not saved any links-think they were within longer discussion type threads on the whole, and I believe one involved trying to draw 1k from co-op where they were told they couldn't have the cash without arranging before hand for that size of drawing, BUT they were allowed to do a banking transfer elsewhere.

Ali x

It's quite normal that you have to order larger amounts of cash beforehand, especially in smaller branches. This has always been so. In particular, small branches don't keep lots of cash, and they don't want to run out of cash just because one customer needs an unusually large amount of money on a given day.

Having to pre-order larger amounts of cash is not the issue people are complaining about.

It's the fact that HSBC have started to ask for ridiculous proof of what you want to do with your cash, and that they declined giving people cash when they couldn't readily produce such proof. More than that, they did not notify their customers that such proof is now needed, and to make matters worse, they said they didn't think there was a need to do so.

To be fair though (or to confuse matters...), they are now saying that they 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."

thegrind

The only questions HSBC should be asking is.

A) Are you in a Mexican drugs cartel?

Are you a terrorist?

Banks tell me when I can remove money from my account and question me on what i wish to do with it.

This is the reason why I don't have savings in banks.

henm2

This has been discussed many times before. This is one example of a previous thread
https://forums.moneysavingexpert.com/discussion/4878702

pmduk

so why resuscitate a 4 month old thread to remind us of something already stated within the post?

henm2

sorry posted on wrong thread

datostar

ALIBOBSY wrote: »

Whilst I agree the policy seems crazy I am still amazed at the number of people who don't know that if you pay cash into a bank legally it ceases to be YOUR cash and becomes the banks asset. In law you are in fact classed as an unsecured creditor.

I have seen various posts on here and other forums suggesting other banks are also making it harder to draw cash over counters or limiting withdrawal amounts.

Ali x

The first principle of banking is that monies loaned by them are ASSETS: monies deposited with them are LIABILITIES.