When a bank refuses to give you your money.

Discussion in 'News from around the damp planet' started by CraigMackintosh, Jan 25, 2014.

  1. CraigMackintosh

    CraigMackintosh *****

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    What would you do?

    Some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it, the BBC has learnt.


    Stephen Cotton went to his local HSBC branch this month to withdraw £7,000 from his instant access savings account to pay back a loan from his mother.


    A year before, he had withdrawn a larger sum in cash from HSBC without a problem.


    But this time it was different, as he told Money Box: "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. They wanted a letter from the person involved."

    [...]

    Mr Cotton cannot understand HSBC's attitude: "I've been banking in that bank for 28 years. They all know me in there. You shouldn't have to explain to your bank why you want that money. It's not theirs, it's yours." - https://www.bbc.co.uk/news/business-25861717


     
  2. 9anda1f

    9anda1f Administrator Staff Member

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    Close the account. Put money in a local credit union. Avoid banks at all costs!
     
  3. Rick Larson

    Rick Larson Junior Member

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    I don't think that story is going to go over too well. People are going to dwell on the down markets all weekend, and now this... Market is down, bills are up, and you can't get at your money in the bank. Cracks are appearing in the system!
     
  4. songbird

    songbird Senior Member

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    for small branch banks it is not unusual for them to have limits on withdrawals as they do not keep a lot of cash on hand. our local branch of one bank has a $1,000.00 limit for check cashing and probably also has some other limits on withdrawal amounts if they get large.

    i'm with Gandalf and vote for credit unions. i also spread the money among a few so that it isn't all in one place.

    to talk about banking a little more, their job is not necessarily to have cash on hand to cover all deposits. that just isn't how they work. they have to invest that money, put it out on loans, some in larger bonds with a central bank or the goverment, some in money market accounts, etc. most banks would likely have a requirement for being notified if you are planning a large withdrawal just to make sure they can arrange to have the cash on hand. i would not consider this any sign that a bank is in trouble, failing or showing a crack in the system.

    however, that all said, i have no idea who HSBC is, the country, or the branch in question and the policies thereof or the recent activities at that branch. :)
     
  5. Grasshopper

    Grasshopper Senior Member

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    A rule is put in place to circumvent a run on money, when people get scared after a financial crash .
    Something the banks are expecting in the not too distant future I assume.

    Scary times.
     
  6. 9anda1f

    9anda1f Administrator Staff Member

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    (wikipedia)

    Still don't know the exact bank location, but I'll assume it's in the UK from Craig's link and the fact the person was trying to withdraw funds in pounds.
     
  7. mouseinthehouse

    mouseinthehouse Junior Member

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  8. Pakanohida

    Pakanohida Junior Member

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  9. annette

    annette Junior Member

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    I had to give 24 hours notice to withdraw 2000 from a credit union. From what I have been reading, it's time to withdraw all money from financial institutions and put under the mattress or in gold and silver or tangibles. Something is going to give and very soon.
     
  10. Rick Larson

    Rick Larson Junior Member

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    I think there is risk in everything right now, even in cash.. The best place for money is in knowledge, the next is in the tools that give the ability to grow food. If you have money left over, its a tough call where to have it.
     

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