Missing faster payment

nyermen

I'm afraid I smell compliance checks (eg. AML - Anti money laundering) process here.
If the funds are over a certain amount (I think it's 10k in the UK), HSBC are legally required to perform certain checks, but in fact HSBC now have a lower limit (I believe enforced by the regulator following previous mischief).

ps. Mention of MT103 above - okay, but unless you're using clearing banks end to end, it's a little more complicated I think (eg. MT202's get involved where there's a correspondent bank in the chain). In this case, each bank in the chain has to perform their checks (as the extended 202 process can more easily allow fraud).

iqy007

Ballard wrote: »

I'm sorry but no bank would deliberately withhold cash in order to earn interest on the funds. The amount of interest that they'd earn is minimal but on the other hand they risk fines, compensation, loss of reputation and ultimately loss of the customer. It would make absolutely no business sense.

I'm aware of few cases, since there's no oversight looks like banks are free to whatever they want especially if they can use anti money laundering check as cover, trying to figure out how widespread it is

iqy007

nyermen wrote: »

I'm afraid I smell compliance checks (eg. AML - Anti money laundering) process here.
If the funds are over a certain amount (I think it's 10k in the UK), HSBC are legally required to perform certain checks, but in fact HSBC now have a lower limit (I believe enforced by the regulator following previous mischief).

ps. Mention of MT103 above - okay, but unless you're using clearing banks end to end, it's a little more complicated I think (eg. MT202's get involved where there's a correspondent bank in the chain). In this case, each bank in the chain has to perform their checks (as the extended 202 process can more easily allow fraud).

Funds are coming from wells Fargo to HSBC UK via HSBC USA, amount is just under $400 this time, I have dealt with other banks in past and they have been helpful in tracking funds but HSBC are pathetic, their call center staff is very rude and uncooperative

PeacefulWaters

iqy007 wrote: »

Funds are coming from wells Fargo to HSBC UK via HSBC USA, amount is just under $400 this time, I have dealt with other banks in past and they have been helpful in tracking funds but HSBC are pathetic, their call center staff is very rude and uncooperative

So it's not a Faster Payment at all?

iqy007

PeacefulWaters wrote: »

So it's not a Faster Payment at all?

No this is second first payment was faster payment which was delayed for 17 days
I cited second missed payment as an example of HSBC either mismanagement or deliberately sitting on funds

Ballard

iqy007 wrote: »

Funds are coming from wells Fargo to HSBC UK via HSBC USA, amount is just under $400 this time, I have dealt with other banks in past and they have been helpful in tracking funds but HSBC are pathetic, their call center staff is very rude and uncooperative

Now that you mention $400 it's obvious that HSBC are holding onto your money so that they can earn interest on it.

iqy007

Ballard wrote: »

Now that you mention $400 it's obvious that HSBC are holding onto your money so that they can earn interest on it.

My previous delayed payment was 25 times more and before that it was over £20K

If they do it for enough people in a month and especially people who ignore small sums, banks can earn huge sums

Most people who siphon off money always go for small amounts

Banks can avoid paying fines by claiming the delay was due to anti money laundering checks since there is no oversight

I will now start looking for other HSBC customers who faced similar problems, maybe we can file a class action suit

SuperHan

iqy007 wrote: »

because of that I have to pay £460 as interest + penalty

I still don't understand why you had to pay £460 + penalty...

iqy007

SuperHan wrote: »

I still don't understand why you had to pay £460 + penalty...

Had another payment scheduled on August 12th missed out on those so penalties and interests totalled to £460

Just visited the branch and the logs clearly show that payment was in on 31st July but the person in branch was unable to see any reason as to why it was not credited into my account for 16 days

Ballard

iqy007 wrote: »

My previous delayed payment was 25 times more and before that it was over £20K

If they do it for enough people in a month and especially people who ignore small sums, banks can earn huge sums

Most people who siphon off money always go for small amounts

Banks can avoid paying fines by claiming the delay was due to anti money laundering checks since there is no oversight

I will now start looking for other HSBC customers who faced similar problems, maybe we can file a class action suit

You're claiming that HSBC deliberately delayed your $400 payment so that they can earn roughly a cent a day interest in the hope that you don't contact them to query it as the work that that would involve for them would easily wipe out any interest that they could hope to earn.

Good luck with the class action.