The Persistence of Memory: HSBC Travails. & Lesson Learned.

The very beginning of Chuck’s post about the recent $350 HSBC checking bonus notes: While this bonus is excellent, beware that it’s an extended process and hassle getting approved and setting up this account (and some people end up getting denied). Only do it if you have the time and patience to deal with it and feel it’s worth the $350.

Those who’ve attempted to open an HSBC checking account online know that truer words have never been laid down in the history of the English language. I’ve written up my travails (and many more lie in the comments of Chuck’s post) to serve as a warning: heed Chuck’s wisdom! And follow up quickly.

Background

I have had accounts with my local credit union for many years and had never banked with a major bank until I opened a Bank of America Core Checking account for the $300 bonus, over the summer. However, I also opened that account to build a relationship with Bank of America and get that sweet 10% relationship bonus on cash rewards, and I changed my work’s paycheck to direct deposit there, in full. HSBC was thus the first bank account I signed up for purely for the bank bonus (although I wouldn’t have minded building a banking relationship with them).

I chose poorly.

Opening the Account: My God, My God, Why Hast Thou Forsaken Me?

The promotion was set to end on November 18, but I decided to get in very early and applied November 1. The application process is lengthier than any other bank, and for some reason, HSBC requires you to fill out an additional form after completing the application. My confirmation screen told me that an initial review of my application could take up to 72 hours and that I would receive in e-mail in 24 hours confirming receipt of my application.

Nada.

Mistake #1: Failing to Immediately Follow-up.

Reading back over the confirmation documents I printed, the following was the prominent information on the confirmation page, under “what to expect next”:

We may call you within 1 business day or you may call us Monday - Friday at 844-867-5750 between the hours of 8:00am-8:00pm (ET); or you should receive an email within 24 hours confirming receipt of your application and reminding you to call an HSBC representative if you have not already been contacted.

I had decided to be patient and wait, assuming it may take HSBC a while to set things up. Were one to assign blame from what follows, it would be fair to say that a good portion lies with me for not following up much sooner at each juncture.

Follow-up #1: Thursday, November 17.

After receiving no communication from HSBC, I finally called in to customer service near (bank) closing hours. That’s when I found out that I needed to provide documentation to verify my identity and address. A copy of my driver’s license would work to verify my identity, but would not work for address verification! I was fortunate to have an electronic copy of my lease, as my other options were utility bills (all in my wife’s name). I submitted the requested documents by e-mail, with the suggested subject line of “Attn: {representative’s name}”, approximately 20 minutes after our phone call ended.

Follow-up #2: Tuesday, November 22.

After again receiving zero communication from HSBC, I called in to customer service. A different representative found my e-mail, linked it to my application, and recommended me for approval. I was told I would receive an e-mail or call either requesting further information (if the first representative I spoke to did not agree with the recommendation for approval) or approving me.

Nada.

Opening Deposit: Thursday, December 1.

I keep a close eye on my bank accounts and this is when the opening deposit is taken from my credit union checking account. A week or so later, I check my spam and notice that there’s an e-mail titled “Your Opening Deposit For Your New HSBC Account Has Been Processed”–HSBC is the only bank I’ve dealt with to have their e-mails routed to spam!

Online Banking: Woe is Me.

Also on December 1, I received a “Welcome to HSBC” e-mail, which informed me that:

For your security, you will receive your Temporary Username and Password separately. Your Temporary Username will be delivered via email, usually within 1-2 business days. Your Password will be sent via postal mail; you can expect to receive the Password within 4-6 business days.

Attempting to set up online banking without my HSBC debit card or a temporary registration ID and temporary password is a bust, so I decide to be patient and wait.

Nada.

Paper Statement! December 29.

With Christmas vacation and other bank accounts opened in the mean time, I let HSBC fall by the wayside until after Christmas when I finally received my first piece of HSBC mail: a statement with my account number on it! I call in to customer service again and am able to request a debit card be sent—and the representative tells me that I can use my account number to request a temporary registration ID and temporary password online, or I can be transferred to the online banking department who will help me set things up. I opt to take down their direct number and request the information online.

Temporary Registration ID & Temporary Password, January 3.

The temporary registration ID & temporary password are sent separately—the former by e-mail and the latter by SMS (or by mail, but I never got that information by mail in the first place and didn’t want to wait 5 to 10 business days). The SMS came through within the stated timeframe of 24 to 48 hours, but I didn’t receive my temporary registration ID by e-mail until January 3. Finally, I was able to set up online banking and get rolling!

What’s My Account Open Date?

The obvious question now is what counted for my account open date? I assume it was November 30, but I wanted to confirm by SM. Alas, they cannot provide “sensitive information” such as my account opening date, but did confirm that I was registered for the $350 bonus and would get the bonus if I met the requirements (which naturally depends on my account open date). I am confident enough that it’s late November that I don’t wish to spend yet another 20 minutes on the phone with HSBC.

Lessons, Lessons, Lessons…

Reflecting on the two-month period it took to open & access my account, I’m drawn to the famous Dali painting that titles this post. The erratic nature of time strikes me as a succinct representation of what it feels like to try to bank with HSBC. I’d be completely nonplussed to find out that the reason for bill pay and/or direct deposit having to take place in three consecutive months within 120 days of account opening is due to HSBC making it impossible to open an account in a reasonable timeframe.

Lesson learned: don’t be me. Do be persistent & relentless about calling within one to three business days every step of the way (depending on the timeframe you are given). You should be able to go from account application to access to online banking in a couple of weeks–a month at most. This is remarkably bad compared to other banks, and it is an enormous pain. Make sure you’re prepared for it, and for one of the worst online banking websites in existence. I get an infinitely better online & mobile experience from my credit union, which is 1/100 the size of HSBC’s US holdings.