Sunday, January 26, 2014

Furious Backlash Forces HSBC To Scrap Large Cash Withdrawal Limit ..... If a Bank is allegedly suffering from a major capital shortfall , it isn't wise to prompt a full -on bank run ! Also , now Lloyds having banking " troubles " today - Lloyds customers hit by card problems

That was fast......


First HSBC Halts Large Withdrawals, Now Lloyds ATMs Stop Working

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Update: things are back to normal - Lloyds will gladly accept your deposits again:


Lloyds Banking Group says problems affecting cash machines and debit cards have been resolved


First HSBC bungles up an attempt at pseudo-capital controls by explaining that large cash withdrawals need a justification, and are limited in order "to protect our customers" (from what - their money?), which will likely result in even faster deposit withdrawals, and now another major UK bank - Lloyds/TSB - has admitted it are experiencing cash separation anxiety manifesting itself in ATMs failing to work and a difficult in paying using debit cards. Sky reportsthat customers of Lloyds and TSB, as well as those with Halifax, have reported difficulties paying for goods in shops and getting money out of ATMs.
All three banks are under the Lloyds Banking Group which said: "We are aware that some customers are unable to use their debit cards either to make purchases or to withdraw money from ATMs. "We are working hard to resolve this as swiftly as possible and apologise for any inconvenience caused."
Further from SkyNews, TSB, which operates as a separate business within the group, issued a statement saying: "We are aware that some TSB customers are unable to use their debit cards either to make purchases or to withdraw money from ATMs. "This has impacted all Lloyds Banking Group brands. We are working hard to resolve this and unreservedly apologise for any inconvenience caused."
TSB chief executive Paul Pester said in a tweet: "My apologies to TSB customers having problems with their cards. I'm working hard with my team now to try to fix the problems."
Clients were not happy:
On the microblogging site, one TSB customer Nicky Kate said: "Really embarrassed to get my card declined while out shopping, never had any problems with lloyds then they changed my account."

Hannah Smith: "I am a TSB customer with a Lloyds card still (like everyone else). And I've been embarrassed three times today re: card declined."

Another customer Julia Abbott ‏said: "Lloyds bank atm and card service down. 20 mins on hold to be told this. Nothing even on website. Shoddy lloyds. ... shoddy."

Helen Needham ‏said: "#lloyds bank having problems with there card service... Can't pay for anything or get money out!"

Another Twitter user wrote: "This problem is also affecting Halifax debit cards as I found out trying to pay for lunch with my wife!"

And Jane Lucy Jones tweeted Halifax, saying: "Why can't I get any money out of any cashpoints, what is going on?
What is going on is known as a "glitch" for now, and perhaps as "preemptive planning" depending on who you ask. Sure, in a few months in may be called a bail-in (see Cyprus), but we will cross that bridge when we get to it.














Furious Backlash Forces HSBC To Scrap Large Cash Withdrawal Limit

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Following the quiet update that HSBC had decided to withhold large cash withdrawals from some if its clients - demanding to know the purpose of the withdrawal before handing over the customers' money - it appears the anger among the over 60 thousand readers who found out about HSBC's implied capital shortfall just on this website, has forced HSBC's hands.
The bank issued a statement (below) this morning defending their actions - it's for your own good - but rescinding the decision - "following feedback, we 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." After all the last thing the bank, which over the past few years has been implicated in aiding an abetting terrorists and laundering pretty much anything, wants is an implied capital shortfall to become an all too explicit one.
Via HSBC - Statement On Large Cash Withdrawals
25 Jan 2014

As a responsible bank we ask our customers about the purpose of large cash withdrawals when they are unusual and out of keeping with the normal running of their account. Since last November, in some instances we may have also asked these customers to show us evidence of what the cash is required for. The reason being we have an obligation to protect our customers, and to minimise the opportunity for financial crime. Large cash transactions have inherent security issues and leave customers with very little protection should things go wrong, by asking customers the right questions, we can explore whether an alternative payment method might be safer and more convenient for them.

However, following feedback, we 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. We apologise to any customer who has been given incorrect information and inconvenienced.
Indeed, as one HSBC customer exclaimed, "you shouldn't have to explain to your bank why you want that money. It's not theirs, it's yours."




Bank-Run Fears Continue; HSBC Restricts Large Cash Withdrawals

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Following research last week suggesting that HSBC has a major capital shortfall, the fact that several farmer's co-ops were unable to pay back depositors in China, and, of course, the liquidity crisis in China itselfnews from The BBC that HSBC is imposing restrictions on large cash withdrawals raising a number of red flags. The BBC reports that some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it. HSBC admitted it has not informed customers of the change in policy, which was implemented in November for their own good: "We ask our customers about the purpose of large cash withdrawals when they are unusual... the reason being we have an obligation to protect our customers, and to minimise the opportunity for financial crime." As one customer responded: "you shouldn't have to explain to your bank why you want that money. It's not theirs, it's yours."

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.

Listeners have told Radio 4's Money Box they were stopped from withdrawing amounts ranging from £5,000 to £10,000.

HSBC admitted it has not informed customers of the change in policy, which was implemented in November.

The bank says it has now changed its guidance to staff.

...

"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 says the staff refused to tell him how much he could have: "So I wrote out a few slips. I said, 'Can I have £5,000?' They said no. I said, 'Can I have £4,000?' They said no. And then I wrote one out for £3,000 and they said, 'OK, we'll give you that.' "

He asked if he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day.

...

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."

...

HSBC has said that following customer feedback, it was changing its policy: "We ask our customers about the purpose of large cash withdrawals when they are unusual and out of keeping with the normal running of their account. Since last November, in some instances we may have also asked these customers to show us evidence of what the cash is required for."

"The reason being we have an obligation to protect our customers, and to minimise the opportunity for financial crime.However, following feedback, we 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. We are writing to apologise to any customer who has been given incorrect information and inconvenienced."

...

But Eric Leenders, head of retail at the British Bankers Association, said banks were sensible to ask questions of their customers: "I can understand it's frustrating for customers. But if you are making the occasional large cash withdrawal, the bank wants to make sure it's the right way to make the payment."
The arrogance is incredible...


Lloyds also having " troubles " today I see .....


Lloyds customers hit by card problems

Lloyds Bank sign
Lloyds Banking Group says some Halifax, Lloyds, Bank of Scotland and TSB customers have had problems using ATMs and debit cards.
Lloyds is the UK's largest retail bank and BBC business correspondent Joe Lynam said hundreds of thousands of customers could be affected.
Lloyds said it was "working hard to resolve this as swiftly as possible".
Paul Pester, chief executive of TSB - which is being split off from Lloyds - tweeted an apology.
He said: "My apologies to TSB customers having problems with their cards. I'm working hard with my team now to try to fix the problems."
Sam, a restaurant waiter, said he had served a couple of customers who were affected.
"Of course, they didn't know what the problem was and neither did we," he told the BBC. "All that happened was the card machines displayed transaction failed notices."
"It's a big nuisance and causes delays for other customers. It has a knock-on effect and banks need to be much more reliable if people are going to rely on their debit and credit cards to pay for services."
Not everyone who have tried to use their cards have have problems, and online customers have been unaffected.
UK banks have suffered a series of IT problems over the past few years. In December, an estimated 750,000 customers at the Royal Bank of Scotland group were unable to use their credit and debit cards for several hours following an IT glitch.
In 2012, a major IT failure locked many RBS, NatWest and Ulster Bank customers out of their accounts for several days. The issue was particularly bad for Ulster Bank, with customers facing access problems for weeks.