Ask HN: HSBC is holding my LLC's money hostage, what are my options

11 points

12 years ago

I opened an LLC couple years ago with 2 other people to do consulting on the side and opened a business checking account with HSBC to go with it. Unfortunately we haven't been able to do much work last year due to our otherwise busy schedules and the checking account was largely dormant with 4-figure amount on it.

We were planning to close the business at the end of 2013 so that we wouldn't have to pay $800 California franchise fee in 2014, but then in late 2013 HSBC closed our account and send us the check in our LLC's name. Similar closures happened to HuffPost blogger

Thinking that I would just be able to cash the check at HSBC branch, I went there and was told that:

* I can't cash it there

* I have to deposit it in another bank to cash it.

* They cannot reissue the check in one of the founders name

* They cannot reinstate the account so that I could write out a check in one of the founders names

* Another bank would not open an account because LLC is now closed.

Our branch visits and calls to HSBC corporate have not come to any satisfactory conclusions.

At this point we have a check in the name of LLC that no longer exist, a 4-digit amount held hostage by HSBC bank and no way to get our money back.

Any advice would be appreciated.

[1]

http://www.huffingtonpost.com/brett-king/when-hsbc-closes-your-ban_b_4362504.html