By Steve Levine
Published: June 8, 2026
What Is the HSBC Direct Savings Account Settlement About?
Did you open an HSBC Direct Savings Account and move money into it by ACH transfer through HSBC's website? You may be entitled to money from a proposed $495,000 class action settlement in Cheng v. HSBC Bank USA, N.A., pending in the U.S. District Court for the Eastern District of New York.The lawsuit alleges that HSBC failed to pay interest in accordance with the Direct Savings Account terms and conditions, which stated that "Interest begins to accrue on the Business Day you deposit noncash items (e.g. checks)." According to the named plaintiff, that provision required HSBC to start paying interest on the Business Day a customer initiated an ACH transfer through HSBC's web portal — not days later when the funds were actually received. The plaintiff contended that HSBC instead waited several days before applying interest, effectively denying customers interest they were owed.
HSBC denies all allegations of wrongdoing. The bank maintains that the account terms provided interest would start to accrue on the Business Day when funds were received in the account. The Court has not decided who is right. Instead, the parties agreed to settle to avoid the uncertainties and expense of continued litigation.
Who Qualifies?
The Settlement Class is defined as all persons in the United States who opened a Direct Savings Account with HSBC between March 25, 2014 and February 20, 2021, and who made noncash deposits into the account using HSBC's online portal on a Business Day for which HSBC did not begin to apply interest on the same Business Day the deposit was initiated on the portal (or on the first Business Day after a deposit initiated on a Saturday, Sunday, or federal holiday).People who did not receive an email or mailed notice may still be part of the Settlement Class if they meet the requirements above. Excluded from the class are the presiding judge and the judge's immediate family; HSBC, its subsidiaries, parents, successors, predecessors, controlled entities, and their current and former officers and directors; and anyone who submits a valid, timely request for exclusion (opt-out).
How Much Can You Get?
HSBC has agreed to create a $495,000 Settlement Fund. Out of that fund the settlement pays valid claims, notice and administration costs, Court-approved attorneys' fees and costs, and a service award to the class representative. What is left after those deductions is the Net Settlement Fund, from which claims are paid.Each class member who submits a valid, timely Claim Form receives a pro rata share of the Net Settlement Fund, calculated in proportion to the interest that accrued on that member's subject ACH deposits during the delay period — that is, the interest that would have accrued between the Business Day the ACH transfer was initiated on the HSBC portal (or the next Business Day) and the day the transfer was actually credited, for every qualifying ACH transfer during the class period. The interest rate used is the actual rate the Direct Savings Account earned at the time of each transfer. Your share therefore depends on how much you transferred, the applicable interest rate, and how many class members file claims.
It is anticipated that every class member with an approved claim will receive a minimum payment of at least $10.00. If your pro rata share would otherwise be less than $10.00, you would instead receive the $10.00 minimum — unless the total of all approved claims exceeds the Net Settlement Fund, in which case the minimum is reduced pro rata so the fund is not exceeded. Any money left after distribution is completed is donated to one or more Court-approved charitable organizations as a cy pres distribution.
How Do I File a Claim?
You must submit a Claim Form to receive a payment. You can file online at the official settlement website or print and mail a paper Claim Form. To be eligible, your Claim Form must confirm your name, current email, current mailing address, and the Unique ID number assigned to you. Claim Forms must be submitted online by 11:59 p.m. EST on August 20, 2026, or postmarked and mailed by August 20, 2026.If you are a current HSBC customer with an open Direct Savings Account as of August 20, 2026, any payment will be issued as a credit to your account. If you do not have an open Direct Savings Account as of that date, you must provide electronic payment information on your Claim Form to receive an electronic payment; otherwise, you will receive a check mailed to the address on your Claim Form. If you lost or never received your Unique ID number, request it through the contact form on the official settlement website.
Key Deadlines
• Claim Form deadline: August 20, 2026
• Opt-out (exclusion) deadline: July 21, 2026
• Objection deadline: July 21, 2026
• Final fairness hearing: September 16, 2026 at 10:00 a.m.
Your Other Options
If you do nothing, you will not receive a payment, but you will be bound by the settlement and will release your claims — meaning you cannot sue HSBC over the issues in this case. If you want to keep your right to sue HSBC separately, you can opt out (exclude yourself) by July 21, 2026; you will receive no payment but will not be bound by the settlement. If you stay in the class but disagree with the settlement or the requested attorneys' fees, you can object by July 21, 2026 and the Court will consider your views. The Court will hold a final fairness hearing on September 16, 2026 to decide whether to approve the settlement; payments are made only if the Court approves it and any appeals are resolved.Class counsel will ask the Court to approve attorneys' fees of up to $165,000 plus costs of $30,786.07, and a service award of $6,000 to the class representative, all paid from the Settlement Fund. You will not have to pay the lawyers directly.
Avoiding Scams
The only place to file is the official settlement website. HSBC, the Court, and the settlement administrator will not call or text you asking for your Social Security number, full account number, or a fee to release your payment. There is never a charge to file a claim. Ignore any message demanding payment or sensitive financial details to "release" your settlement money.Related Bank Settlements on OCA
If you bank with more than one institution, you may qualify for several unrelated fee or interest settlements at once. See our coverage of the Capital One 360 Savings interest settlement, the South Central Bank overdraft fee settlement, and the Bank of America ATM fee settlement, or browse the full OCA open settlements database.Frequently Asked Questions
Who qualifies for the HSBC Direct Savings Account settlement?
You qualify if you opened a Direct Savings Account with HSBC between March 25, 2014 and February 20, 2021 and made noncash deposits into the account using HSBC's online portal on a Business Day for which HSBC did not begin to apply interest on the same Business Day the deposit was initiated (or on the first Business Day after a deposit initiated on a Saturday, Sunday, or federal holiday). Potential class members were identified from HSBC's records and assigned a Unique ID number.
How much money will I get?
Each class member who submits a valid, timely claim receives a pro rata share of the Net Settlement Fund, calculated in proportion to the interest that accrued on that member's subject ACH deposits during the delay period. It is anticipated that every approved claim will receive a minimum payment of at least $10.00, unless the total of approved claims exceeds the Net Settlement Fund, in which case the minimum is reduced pro rata.
Do I have to file a claim form?
Yes. You must submit a Claim Form to receive a payment. You can file online at the official settlement website or mail a paper form. To file, you must provide your name, current email, current mailing address, and the Unique ID number assigned to you. If you take no action, you will not receive a payment but you will still be bound by the settlement.
What is the claim deadline?
Claim Forms must be submitted online by 11:59 p.m. EST on August 20, 2026, or mailed and postmarked by August 20, 2026. The deadline to opt out or object is July 21, 2026, and the Court's final fairness hearing is scheduled for September 16, 2026.
How will I be paid?
If you are a current HSBC customer with an open Direct Savings Account as of August 20, 2026, your payment will be issued as a credit to your account. If you no longer have an open Direct Savings Account, you can provide electronic payment information on your Claim Form to receive an electronic payment, or you will receive a check mailed to the address on your Claim Form.
Official Settlement Notice
Class Action Complaint
Sources
• Cheng v. HSBC Bank USA, N.A., Case No. 1:20-cv-01551-BMC, U.S. District Court, Eastern District of New York• Notice of Proposed Class Action Settlement
• Class Action Complaint (filed March 25, 2020)
• Official Settlement Website
OpenClassActions.com is a consumer news site and is not a settlement administrator or a law firm.
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