Court Victory for Consumers in Cheng v. HSBC Bank

At Schlanger Law Group, we’re proud to share a significant development in Cheng v. HSBC Bank USA, N.A., a case that highlights the importance of holding financial institutions accountable to their customers. 

On November 20, 2024, the Second Circuit Court of Appeals issued a ruling vacating and remanding the lower court’s decision in favor of our client, Ji Dong Cheng. Mr. Cheng had brought a lawsuit against HSBC, claiming the bank violated its agreements with depositors and engaged in deceptive practices under New York law. The issue centered on whether HSBC failed to pay interest on funds transferred through the Automated Clearing House (ACH) system on the same day the transfers were initiated. 

Initially, the lower court dismissed Mr. Cheng’s claims and denied the case class-action status, citing concerns that his situation wasn’t typical of other customers. However, the Second Circuit disagreed. In its November 20th decision, the appeals court ruled that the lower court misapplied legal standards for determining whether Mr. Cheng could represent a broader group of affected customers. The court clarified that Mr. Cheng’s personal understanding of HSBC’s policies shouldn’t prevent the case from moving forward as a class action. 

This ruling is a meaningful step forward, ensuring that financial institutions are held to consistent standards and treat all customers fairly. It also highlights the crucial role of class actions in addressing systemic misconduct, allowing individuals to come together and demand accountability from large corporations. 

While the case isn’t over, this decision gives our client and other affected HSBC customers the opportunity to pursue justice. At Schlanger Law Group, we remain dedicated to standing up for consumers and helping them fight for fairness and accountability. 

If you’ve experienced unfair practices by a bank or financial institution, we’re here to help. Stay tuned for more updates on this case and other important consumer rights issues.