UK: Banks refuse cash withdrawals without justification

[Balthazar]

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.

Some guy wanted to pay back a loan from his mother:

"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."

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In short, if you want your money you need a good reason and you need to tell the bank what you want to do with it. Then they can decide if it's justified or not.

 

[ChopleyIOM]

I make withdrawals of three hundred pound coins from HSBC on a reasonably regular basis for my AWP adventures. (The AWPs on the Isle of Man don't have note acceptors like they do in the UK due to a legal quirk, so they are either physically removed or disabled.)

This means that I have to play using pound coins, and I don't like to rely on getting change from the bar, so I have to make sure I have enough coinage on me to see a machine out if one decides to play funny buggers (these things are capable of streaking to £210, and are on a payout of only 74-76%, albeit compensated, so sometimes you need a big bankroll).

Anyway, point is that I get asked time and time again what I want the coins for, are they for me, do I have an account with them, do I have a business etc. (They do actually confirm my account details with them sometimes, and even write the details of the 'transaction' down.)

We have our mortgage with the HSBC, a current account, a savings account and two credit cards, we are very profitable customers for them I imagine (the fucking interest on the mortgage alone will see to that), and yet I'm made to explain myself like a small child because I want to take three hundred pounds in cash out of MY OWN GODDAMN BANK ACCOUNT. Yes I suppose three hundred pound coins is a fairly unusual request but it's not a massive amount of money and it's cash out of my own account!

It pisses me off every time

 

[jetset]

Some years ago I used this bank but their sub-standard interest rates, lack of respect for customer privacy and generally arrogant attitude soon persuaded me to take my business elsewhere.

This arbitrary approach to customer withdrawals imo illustrates the attitude this outfit has toward its clients.

Glad I dropped them years ago.

 

[ChopleyIOM]

I think they're all as bad as each other TBH, there's no such thing as a 'good' bank as far as I'm concerned.

At least HSBC didn't need a government bailout!

 

[jetset]

LOL - probably because they had all that money they were with holding from their clients!

 

[Balthazar]

LOL - probably because they had all that money they were with holding from their clients!

A bank is (in theory) a business and pissing off customers shouldn't be a good idea.

 

[Balthazar]

I'm made to explain myself like a small child

What would they say if you'd tell them to mind their own business?

 

[ChopleyIOM]

What would they say if you'd tell them to mind their own business?

My take on it is that the person on the counter is just doing what they're told to do, there seems little point in me taking out my frustration on them.

TBH I've never had a problem with getting the coins, but it does start to grate after a while being asked the same questions every time.

The business/customer relationship when it comes to banks is totally fucked, they know they're above the law (the 2008 crash has proved that beyond all doubt) and they effectively run the governments of the world anyway - no point fighting against that TBH.

 

[Balthazar]

My take on it is that the person on the counter is just doing what they're told to do, there seems little point in me taking out my frustration on them.

5 or 6 years ago, the bank lady asked me "did you sell your car?" when I went to make a $900 cash deposit. I said no, then she asked me where the money came from. Here, by law they have to ask for $10,000 or more, but this one was $900! I told her that I work and that sometimes I'm paid in cash and she even asked where I work!

It totally took me by surprise and I didn't know how to react but I felt so humiliated. I still think about it every now and then and have regrets that I didn't close that bank account that day.

 

[bigjohn]

My take on it is that the person on the counter is just doing what they're told to do, there seems little point in me taking out my frustration on them.

TBH I've never had a problem with getting the coins, but it does start to grate after a while being asked the same questions every time.

The business/customer relationship when it comes to banks is totally fucked, they know they're above the law (the 2008 crash has proved that beyond all doubt) and they effectively run the governments of the world anyway - no point fighting against that TBH.

I wouldn't 'take it out on them', how about just say, "It's a private matter."

Are most people there content to just let it happen?

 

[ChopleyIOM]

I wouldn't 'take it out on them', how about just say, "It's a private matter."

Are most people there content to just let it happen?

But why even bother flagging yourself up as a 'problem customer', you may as well say 'It's for a drugs deal' or something like that.

The banks run the world, really, there's no point kicking against that. They're more powerful than governments, indeed they are the governments.

If you haven't seen them already watch:

Inside Job, The Flaw, Capitalism A Love Story, Enron: The Smartest Guys In The Room, Frontline: The Warning and also the 'Money As Debt' series which is on YouTube.

 

[bigjohn]

Man, you guys are just way too 'chill' over there.

Over here in the States everybody is a 'problem customer', we feel it is almost our duty to raise a stink when we feel we are being treated unjustly. I can go to my bank and take out as much as I want and the only question will be, "How would you like that, cash or draft?" If I tell them I want $3000 in nickles they will start bringing bags out to me!

No wonder most of the world hates dealing with Americans, lol, we want everything and we want it now and we don't want no questions!

 

[Rick Deckard]

Man, you guys are just way too 'chill' over there.

Over here in the States everybody is a 'problem customer', we feel it is almost our duty to raise a stink when we feel we are being treated unjustly.

No wonder most of the world hates dealing with Americans, lol, we want everything and we want it now and we don't want no questions!

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Never forget the battles fought by your ancestors :notworthy

 

[skiny]

5 or 6 years ago, the bank lady asked me "did you sell your car?" when I went to make a $900 cash deposit. I said no, then she asked me where the money came from. Here, by law they have to ask for $10,000 or more, but this one was $900! I told her that I work and that sometimes I'm paid in cash and she even asked where I work!

It totally took me by surprise and I didn't know how to react but I felt so humiliated. I still think about it every now and then and have regrets that I didn't close that bank account that day.

That reminds me of my younger days when I used to work 60 hours a week. I went into the bank one day to deposit my pay and with the cheque still sitting on the counter the manager comes over and says with a really accusing tone "You've made quite a few large deposits lately" and then proceeds to ask where the money came from. I said "Pay cheques. I take it yours are smaller." And the young teller looks away from him with a grin. I guess she thought he was an ass too.

Another time at the same bank I tried to make a cash withdrawal and the teller says "I'm only supposed to do transactions of under 1k."
So I said "Ok, make it two transactions."
She says "I'm not really supposed to do that."
I said "Well, you can give me this or you can close my account but one way or another I'm taking out what's on this withdrawal slip."
So she goes and brings back the same snotty manager and he says "Can I ask what the money is for?"
I said "Yeah... But I'm a pathological liar so there's probably not much point."
Then I say "So exactly how long does it take to get all my money from this bank to the one next door?"
And he says to the teller "Just give him the money."

You know, I can understand the banks having to track and report large amounts of money but sticking their nose in everyone's business every time you try to move around a thousand dollars is absolutely unnecessary. That being said, it's been many years since any bank has questioned any of my transactions. I know for a fact you can receive thousand dollar email money transfers every day for a week and my bank doesn't seem to care. I cashed an international cheque for 2k once from a casino win and they wanted to hold it for 6 weeks. I was obviously not too thrilled about it but she said it was standard for international cheques. After a brief discussion she went into the manager's office to see if they could anything for me and the manager offered to drop the hold down to 5 days as if it was a local cheque which suited me just fine but at no time did they ask me what the cheque was for.

They have to realize that 20 years ago 2 grand was a lot of money. These days 2 grand might buy you a medium sized television.

 

[Googobucs]

Man, you guys are just way too 'chill' over there.

Over here in the States everybody is a 'problem customer', we feel it is almost our duty to raise a stink when we feel we are being treated unjustly. I can go to my bank and take out as much as I want and the only question will be, "How would you like that, cash or draft?" If I tell them I want $3000 in nickles they will start bringing bags out to me!

No wonder most of the world hates dealing with Americans, lol, we want everything and we want it now and we don't want no questions!

No kidding. I was once in a store buying something and the girl ask for my zip code. I told her it was none of her business; I'm paying cash, do you want to sell me the crap or not.

 

[Jasminebed]

No kidding. I was once in a store buying something and the girl ask for my zip code. I told her it was none of her business; I'm paying cash, do you want to sell me the crap or not.

This one happens all the time here. I just say no. The cashier is usually surprised, I guess most people comply. They use it for marketing purposes for flyers, and planning new store locations.

My bank reserves the right to require 24 hours notice for cash withdrawals of more than 10K. I think this is reasonable to manage their cash flow. I know that Money Mart requires a phone call and a manager approval if you are withdrawing more than $2500 from your prepaid Visa Card, so expect to spend an extra 20 mins or so.

The only thing I've had questioned was a personal cheque I received, and I was asked if I knew this person. I did, it was not a large amount ($150), and they didn't put a hold on it, which they probably would have done had I not known them (such as a classified sale or such).

 

[mathsboy1975]

It is not just withdrawals that HSBC are shabby with. I walked into a branch about 3 years ago asking if I could open a savings account. They asked my how much I would be paying in a month to which I replied roughly £200. They then looked down their nose at me and said that they were not really interested in my custom for such trivial amounts of cash per month but had the cheek to then mention that should I wish to change my main current account (from Barclays) to a HSBC current account that they would he happy to serve me.

I do not need to print the expletive that I used in my response to their generous offer.

 

[GrandMaster]

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.

Some guy wanted to pay back a loan from his mother:

"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."

Full story:

You do not have permission to view link Log in or register now.

In short, if you want your money you need a good reason and you need to tell the bank what you want to do with it. Then they can decide if it's justified or not.

The appropriate response to such a question is that "I am having an orgy and the hookers insist on payment in cash".

 

[rockycatt]

banks :+)

once a wise guy pays a carpenter i grew up with] with insoficant funds he know because he telephone and teller inquire about the check at another branch check for 9500.00

its about 175$ short so not trusting the guy for writing a shorted check he deposites 200 into the guys account
with a bench supplied deposite slip

and got to cash the 9500.00 check that was made out to him so the writer of the bum check is
but at that time any ways no law against adding money to another' s account this was 35 years ago

 

[suzecat]

The appropriate response to such a question is that "I am having an orgy and the hookers insist on payment in cash".

 

[dionysus]

If my bank asked why I wanted my money, I think I'd simply respond, 'because it's MY money' and it would suffice. I'm not obligated to explain why I want my money and what it's for. If they are content holding my 5k without asking whence it came, they can damn well release it on the same condition.

My aunt is notorious for freaking out out her bank. When she sells her house and buys a new one, she does it in cash, and has walked in saying, 'I'd like to withdraw (example) $300,000, thank you.'
The bank will try for a cheque and she'll refuse. She's had them force a bank guard on her to walk her out to her vehicle, and she's all 'no, I'm good, thanks, there's cameras'...then go to the buyer and plop down a briefcase of cash lol

 

[skiny]

I had a cashier ask for my phone number once when I was making a purchase at one of the old Radio Shack stores.

I said "It's in the book."
He said "Well, what's your name?"
I said "That's in the book too." And walked out.

 

[secret2]

I've been away from the UK but does HSBC bank allow you to take your OWN money and say that you would like to close your account and have your money cashed out and closed?

It's like being physically attacked and ask is it ok to fight back.

 

[skiny]

I've been away from the UK but does HSBC bank allow you to take your OWN money and say that you would like to close your account and have your money cashed out and closed?

It's like being physically attacked and ask is it ok to fight back.

It never hurts to ask before you smack someone. Try this - When you finish flipping through the policy book during the orientation at your new job, flip through it one more time quickly and then ask "I don't see any mention of smacking people around. Is that strictly of off the table or is that covered in another book?"

 

[Nifty29]

What a disgusting situation.

It's kinda funny that over here, even though we don't have things such as free speech and stuff in our constitution, we seem to hold our banks and businesses to very high account.

There's NO way on God's green that a bank over here would ask ANY questions about any amount under $10,000....and even then you're handed a form to fill in and sign and the transaction goes ahead without any verbal questioning.

Maybe it's because there is fierce competition these days since deregulation. Just about every profession has it's own credit union bank e.g. nurses, teachers, police that offer lower interest and almost no fees, so if a bank pisses you off they know you'll have transferred your money elsewhere in 24 hours.

We even have legislation incoming where banks cannot charge you fees to move your mortgage, which has immediately created an atmosphere of better treatment for borrowers.

 

[Digi]

I think the real reason is because the banks have almost no liquidity.

In France the situation is much worse at some banks: limits of 300€ or less and they ask why you need that money.

 

[skiny]

I think the real reason is because the banks have almost no liquidity.

In France the situation is much worse at some banks: limits of 300€ or less and they ask why you need that money.

300 dollars?

I'd say "It's 300 dollars. I'm going to change it into small bills and roll around in it. What do you think?"

 

[vinylweatherman]

I have experienced an opposite problem. When I shunted those huge wins from Neteller to my bank, I was "invited in for a chat" about it. Turns out all they were up to is trying to sell me one of their other financial products. It started off "you have a very large sum of money in your current account", and ended with "I know, I have already made plans for it, it won't be there for long". The plans just didn't involve one of their products, better rates were to be had elsewhere

I feared I was going to be asked where I got it from, and how I "earned" it, due to money laundering rules. I did tell them though, "I won it" was all they got, and this being the UK and not the US, this was not a problem for them.

By far the daftest was Neteller, they asked me what my transactions were for - it should have been obvious what they were for due to the nature of Neteller's business. They were very insistent, so I said "depositing and withdrawing with online casinos", and I asked them what specific transactions they needed help with as they should know who their merchants are. This finally managed to satisfy them.

I suspect banks are so used to everybody using cards, cheques, etc for larger sums that large amounts of cash are very unusual, so they suspect something underhand is going on. There has also been a problem with rogue traders "marching" their victims to the bank and getting them to withdraw large amounts of cash so that there is no paper trail of payments should the victim come to their senses and complain to Trading Standards or the police. The problem here seems to be an over zealous application of policy.

 

[MissRuthless]

Wow that is incredible.

I can go to my bank, make withdrawls, and no questions are asked, other then maybe, how is your day, or something like that.
Did not actually think it was any different anywhere else at all.

That is truely rubbish!