Doesn't believe you about what?

Regarding the hugs...

I think it is up to you...

I can understand someone saying what he did full of good intentions...

But then again I can understand someone feeling like that is not the right way to go about building trust.

If you really do feel uncomfortable about the hugs then you are indeed well within your rights to say 'I don't think that this is the way to go about building trust with me'.

Some therapists... Are good at building rapport / trust by emotionally holding patients with their voices.

Use of touch is very controversial. I think... Sometimes it helps and sometimes it does not help. If you feel a little uncomfortable... It could help. If you feel a lot uncomfortable then you are well within your rights to say 'no'.