@1 - "I talked to someone from my bank, and hir told me it would take a couple of hours for the system to recognize my new password." Hmmmm, I dunno...
@3 - It doesn't work in all case, it's true. Perhaps it's just a 3rd person possessive. Mix it in with 'they' and ... "Hir favorite album was Hunky Dory, and they played it all the time."