A man was awarded compensation after being “humiliated” and “racially abused” while attempting to open a bank account with HSBC.

In a decision by the financial arbiter, the bank was ordered to pay the man €500 in damages and send him a formal letter of apology.

Arbiter Alfred Mifsud said the bank should take steps to ensure staff members are properly trained in treating clients without discrimination.

The complainant, a Maltese citizen who hails from Nigeria, said he was “humiliated and racially abused with some nasty questions that had nothing to do with the bank” while trying to open an account.  

“For instance, they asked me how I got my citizenship and I responded it was through marriage and residence, having lived here for over 20 years,” he explained in his complaint to the arbiter. 

The man said he came to Malta legally and has a spotless police conduct. His application to open a bank account ended up being rejected without any reason being given by HSBC. 

The man said his employer asked him to open a bank account to receive his wages directly. He had been using his wife’s HSBC account for banking purposes.

“I was humiliated and starved of my wages due to the colour of my skin and this had placed a huge financial burden on my family, with my wife struggling to feed the family since I couldn’t receive my wage yet without an account.” The delay in opening a bank account caused him to miss two wage payments from his employer.

“My only crime was, perhaps, that I am a Black Maltese citizen and a government official and, therefore, don’t deserve to have an account with HSBC,” he argued.

The man was by then well served by another bank

The arbiter established that it took over two months between the time initial request to open a bank account was made and the time HSBC issued its refusal.

The arbiter also noted the same person had no problem opening an account with another bank. 

HSBC admitted they were deficient in handling the man’s application for a bank account,

After the complaint was filed with the arbiter, HSBC contacted the man to inform him they were revising their position and were ready to continue their due diligence process. The man, however, refused, as he was by then well served by another bank. 

In submissions to the arbiter, HSBC admitted the situation was mishandled.

Following a review, HSBC said the person dealing with the case “did not have the proper experience and there was some sort of miscommunication”.

The bank “sincerely apologised” for the misunderstanding and offered the man €100 as a gesture of goodwill. The man was also given the opportunity to go through the bank’s due diligence process again.

In his decision, the arbiter noted that HSBC admitted they were deficient in handling the man’s application for a bank account. “This has, no doubt, caused him embarrassment and humiliation,” the arbiter said. 

He was awarded €500 in damages by the arbiter, who said the €100 in compensation offered by HSBC was inadequate for the grievances caused.