New HSBC Cash Bag policy

Horace

I nipped into my local HSBC branch today to pay in a cheque and noticed signs had appeared stating that all coins taken in have to be paid into either an HSBC or First Direct account, you cannot exchange coins for notes.

I was somewhat boggled by this, as I love to take my jam jar collections in there and in the past they have told me that they accept incomplete bags which is great as I still get the dosh in note form. I asked the cashier and she told me that it was a new rule and that legislation states that coins taken into the bank must be put through an account before you can draw it out - surely this is money laundering?

It's my money and I don't necessarily want it to go directly into the bank and have to draw on it later - I use my jam jar savings for special treats for myself such as facials etc.

Does anyone else know if this is true - does everyone who takes in their jam jar savings have to pay it directly into their account first?

matt4504

I bank with HSBC and was in there today but never saw that sign but anyway I went to do the same thing that you did (swap change for notes) in Abbey but they said I couldn't do it without it being paid in because they needed to keep a audit on their cash draw so maybe thats why HSBC are doing it now? *shrugs*

ric2003

I did that recently with lloyds tsb - about £70 in coins !! - I was paying into my account but the woman at the counter said it was ok to just swap it for notes, I didn't have to pay it in if i didn't want to. she seemed quite keen for me to swap it, maybe they are trying to remind customers of that policy if other banks are now refusing to swap for notes. I use to bank with HSBC, they always make you feel like some kind of criminal if you come in with a whole load of cash, even if its all bagged up and counted!

Surely banks have to change coins by law? it should be their duty as banks to do so.

gt94sss2

Horace wrote: »

I nipped into my local HSBC branch today to pay in a cheque and noticed signs had appeared stating that all coins taken in have to be paid into either an HSBC or First Direct account, you cannot exchange coins for notes.

It could be some form of 'local policy' - if they have had a lot of non HSBC customers coming in and asking them to exchange coins-->notes.

I know my local HSBC branch has a sign saying their counter service will only do transactions for HSBC/First Direct accounts at lunchtimes which I have always found a bit odd - it can't be very common these days for someone else (say a Natwest holder) to pay money in to their Natwest account at a HSBC branch..

I do know at HSBC branches which HSBC have refurbished/upgraded with various express banking machines, they have fitted Coinstar type machines which will immediately count any cash and credit it immediately to your account - no bagging needed and any sum works.

At least when you do deposit cash/coins into a HSBC account, its credited instantly - so you can withdraw it immediately..

Regards
Sunil

gt94sss2

ric2003 wrote: »

Surely banks have to change coins by law? it should be their duty as banks to do so.

No, they don't and many banks (apart from the big 4) or building societies will refuse to do so - or they will insist that the coins are all pre bagged and limit the number they accept to 5 bags a day or have other restrictions like that.

Regards
Sunil

cinnabar

I work in one of the 'big 4' banks (not HSBC though) - we have a similar policy but just don't happen to be very strict about it - myself, I tend to change small amounts of change for pretty much anyone who asks (especially if they've queued for ages!), as long as it's bagged up and doesn't appear to be to do with a business (for the simple reason that businesses get charged for changing notes/coins). If it's a larger amount, say 20-100 pounds, I might ask for proof that the person holds an account, and for amounts larger than than that I might insist on paying it into the account. One branch I worked in had a run of till errors that were related to changing coins, including one cashier who gave the customer the notes, then gave them the coins back! - I'd imagine that this sort of policy is designed to reduce cashier error (or at least make it more traceable) and to discourage non-customers from coming in just to change their coins.

But there's no legislation that I know of that means coins must be paid through an account - it would be a slow way of laundering money though!

MattB_4

I would imagine it is designed to deal with the scourge that are counter transactions. Non-customers are the the last people you want to be allowing to destroy your profit margin!

Boggles1234

I've just spotted this and wanted to add a quick comment.

I run a Spar shop and we are always happy to swap bags of change for people. It costs us a fortune each month (hundreds of pounds) in bank charges for things like buying change so if you can, call into your local store and see if they are interested in swapping it.

Just use a bit of common sense about it and don't go in at rush hour.

Milarky

Query: aren't coins 'legal tender'? Therefore if you draw cash out of any account which isn't there (eg draw on overdraft) and then offer to repay some/all of this immediately with coins the bank would be legally obliged to accept? See here. There are limits for coins less than £1 in value (see table) Effectively this is 'swapping' where you hold an account.

gt94sss2

Milarky wrote: »

Query: aren't coins 'legal tender'? Therefore if you draw cash out of any account which isn't there (eg draw on overdraft) and then offer to repay some/all of this immediately with coins the bank would be legally obliged to accept? See here. There are limits for coins less than £1 in value (see table) Effectively this is 'swapping' where you hold an account.

IANAL but I think there is a general misunderstanding of what 'legal tender' means.

From the link you have quoted it means (my bolding) "that a debtor cannot successfully be sued for non-payment if he pays into court in legal tender. It does not mean that any ordinary transaction has to take place in legal tender or only within the amount denominated by the legislation. Both parties are free to agree to accept any form of payment whether legal tender or otherwise according to their wishes. In order to comply with the very strict rules governing an actual legal tender it is necessary, for example, actually to offer the exact amount due because no change can be demanded."

So "legal tender" in the UK is what a court would accept to avoid someone being sued - banks or shops don't need to accept coins/notes/money if they don't want too!

Regards
Sunil

Lychee

I didnt realise banks can be so particular about coins being paid in. I went into A&L with £1 coins plus odds of 10p, 5p, 2p and 1p totalling 65p. The bank refused to take my 65p in change! I wanted to pay it into my own account! What's the problem with that!!