HSBC Sees Lawsuit Over Interest on Electronic Transfers Revived

A a class action alleging that HSBC Bank USA NA didn’t properly pay interest on electronic transfers got a reprieve Wednesday, but it will need a closer look from the lower court.

Ji Dong Cheng said HSBC breached its contract with its depositors and engaged in a deceptive practice under New York law by not providing interest on the same day an automated clearing house transfer is processed, the unsigned summary order for the US Court of Appeals for the Second Circuit said.

The district court ruled that the evidence showed that Cheng didn’t expect to receive interest on the ...