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HSBC North America - Page 2

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58 Reviews & Complaints

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APR / interest rate raised for no reason
Posted by Haangy on 09/17/2007
CAROL STREAM, ILLINOIS -- I had a GM card for nearly 4 years, and never had a problem with them. They even lowered my rate from 18.24 to 14.24 when I called them about it last year. Suddenly, a couple of months ago, they sent me a letter stating that due to their review of my overall financial situation, and despite the fact I had never missed or been late on a payment to them, they were going to raise my interest rate from 14.24% to 32.24% I was furious, and immediately paid off the card and closed the account. I am trying to spread the word that you should avoid both HSBC and their GM card, because they will rip you off.

     
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Posted by Hugh_Jorgen on 2007-09-17:
If you spend some time here, you will see that complaint about most all of the major credit card issuers. It's become quite popular with them to raise your rate for issues unrelated to your actual CC account with them. We need the admin to come up with an M3C Visa card. You can earn "very helpful" points with each purchase and the interest rate is fixed.
Posted by Slimjim on 2007-09-17:
Well they did have a reason, it's just not something you (or even I) agree with. You did the right thing and as long as good card members continue to close accounts when they get hiked like that, the creditors will start looking closer at who they should give the shaft to.
Posted by Anonymous on 2007-09-17:
Seems they have become no more then lone sharks.
Posted by Anonymous on 2007-09-18:
All the credit cards are doing that. Cut up your cards and pay them off.
I voted your review 'Very Helpful'.
Posted by bkn0245 on 2007-12-13:
They did the exact same thing to me, only my rate for the last 4-5 years was about 7%, out of the blue they raised it to 31.74%. Called several times to Credit Dept, had them pull a new credit report, won't do anything about it. Promised to call me back within 48 hours, never happened.
Posted by djelane on 2008-02-08:
I also had a credit card with them for 3 years with a 6.99% interest rate and they bumped my interest up to 33.34% without reason or warning. I immediately closed this account!
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Terrible Customer Service
Posted by HoniDijon on 07/18/2007
PRINCETON, NEW JERSEY -- I have been an HSBC MasterCard user for the last 2-3 years. Recently, HSBC implemented a fraud alert system that holds credit card member accounts whenever an out-of-state or out-of-country purchase is made, which can be a hassle if you are a frequent traveler.

On July 17, 2007, I contacted HSBC customer service at the request of an HSBC fraud alert email. I am a frequent traveler and my HSBC card stops working when I am overseas or out-of-state. I understand and appreciate the importance of cardmember protection against fraud, but when I asked the customer service representative (Kim ID# 904613) if there was anything I can do to prevent my card from being "held", she rudely told me that I can cancel my account.

As a consumer with good credit, I have an unlimited choice of credit cards. I chose HSBC for the cash back rewards and its global reputation; however, I have two other cards from Citibank that offer the same cash back rewards and also have a good global reputation. I will be posting this comment on all credit card consumer boards. HSBC customer service appears to be lacking in courtesy and respect...

I will cancel my account and take my business elsewhere.
     
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Posted by runaway on 2007-07-18:
Sounds like canceling is the best thing to do.
Posted by Anonymous on 2007-07-18:
If you travel so much, why don’t you use traveler check card?

It is safer and it works almost everywhere.
Posted by bill on 2007-07-18:
I had a similiar problem with a WAMU card. I called them up and they immediately removed current and future holds. You have the right idea. Cancel the card. There are plenty of creidt card companies out there.
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OVERDRAFT FEES
Posted by Fedupinnewyork on 10/20/2006
ROCHESTER, NEW YORK -- Consumer Beware. HSBC, and I believe most other banks, have a standard practice in place to that allows them to "steal" from your checking account. Here's an example of how it works; Say you have a balance of $500 in your account. You write checks for $25.00, $50.00, $75.00, and $501.00 on the same day. They clear the bank the same day. You are going to be charged (4) overdraft fees, $33.00 each for these checks. Why you might ask? Because they ALWAYS clear the largest dollar amounts first. Even though (3) of your checks were good and could easily clear the account, HSBC makes sure that won't happen so that they can collect these exorbitant, outrageous fees from their very own customers. Does anyone wonder where the government agencies that are supposed to protect us from such thievery are? I already wrote to my Congressman, as if that will do any good.
     
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Posted by Sparticus on 2006-10-20:
Banks primary source of income (I believe) is fees. So this does not surprise me. Once in a great while banks run fee-free promotions. Jump in during those times and don't ever switch accounts. They'll try to offer you "better" accounts, but stay grandfathered in a fee-free program. Or find another bank!
Posted by Hugh_Jorgen on 2006-10-20:
Your example does not work - if they send the largest thru first, the check for $501 won't clear and the other three will. Do you honestly believe the banks have the time to sit there all day waiting for your (or anyone's) checks to come in for the day just so they can send them thru in the order most likely to screw the consumer over? If so, then it appears your tin foil hat has slipped a bit. Here's an idea - quit writing checks you can't cover, quit trying to play the float and you will never have a problem.
Posted by Anonymous on 2006-10-20:
Sometimes the bank will cover the larger check which would empty out your account then send the smaller amounts through. USBANK did it to me. I don't blame them, it was my fault but it can happen like FinNY, says.
Posted by Anonymous on 2006-10-20:
Hugh, you're wrong on this one.. http://www.bankrate.com/brm/news/chk/19990921.asp .. A lot banks do the "Biggest Check First" routine.. Google it you'll see.. I guess the tin foil hat doesn't apply here.
Posted by Anonymous on 2006-10-20:
Do I hear a echo in hear?
Posted by Anonymous on 2006-10-20:
"....in here?"
Posted by bill on 2006-10-20:
If you have $500.00 in your account you shouldn't be writing checks totally $601.00.
Posted by bill on 2006-10-20:
Opps I made a mistake. The checks total up to $651.00
Posted by Hugh_Jorgen on 2006-10-20:
Stew - I have to admit that was the first I heard of that, and it dated back to 2002. You learn something every day. Then again, if you don't write checks for money you don't have in the bank this will never matter.
Posted by Anonymous on 2006-10-21:
Who's theiving who? If you write checks for more than you have in your account, your stealing from the bank and every customer of that bank. It's a checking account, not a personal loan.
Posted by fedupinnewyork on 2006-10-23:
The helpful readers miss the point. Don't say my explanation does not work...it does. You see, I have overdraft protection on my account. This means that when I do overdraft, they pay my check and charge me a fee, $33.00. All of my checks are covered so that I never bounce one. While it is true than if I never overdrew my account I would not have fees, it is also true that they do not have the right to push through the largest checks first. And no, they do not have the time to sit there and overdraft accounts...they are programmed to that. The checks are sorted from largest to smallest. I know this to be a fact as I check my account every single day....and every day the largest ones are passed through first. In my case, all but the largest check should have cleared, without a fee. It doesn't take a rocket scientist to figure that out. Yes, in my example, $501.00 would already have overdrawn my account...I have overdraft protection. All of the other checks in the example should have CLEARED the account FIRST, WITHOUT fees, the fee being charged for only the $501.00 check, which should have been the last one to clear based upon this example. Why is this so difficult to follow? You can be as rude as you like. I know what is happening. Some of you are perfect, never overdraw your account, God bless you all. And some of you must have so much money you aren't concerned about this thievery. Blessings to you,too. As for those of us that live paycheck-to-paycheck, stealing $99.00 from me is a really big deal. Have a great day. fedupinnewyork
Posted by firefly on 2006-10-23:
This writer is absolutely correct! Anyone can make a mistake in their checking account (except for the high-and-mighty folks that have responded here) I know I have. I met the same fate; one check should have cleared first because the money was there to cover it.. the bank cashed a larger check, overdrew my account and charged me two fees of $30.00 each. There should have been only one fee, which there would have been if the smaller check had cleared first. We're not stealing, and we're not floating. Just sometimes, we make mistakes. Hang in there fedup...you're right. And this practice should be illegal.
Posted by rafaborrero on 2006-12-13:
Wait a sec...why would you write $651.00 in checks with only $500.00 in the bank. In some states it's illegal. Stop whining and buy a calculator!
Posted by pjhwin on 2007-12-12:
Banks use creative accounting methods to put accounts into the negative, so they can justify maximum overdraft fees. That's one way that they do it,they reorganize the order of the debits and credits against your account to get the most overdrafts fees that they can. The Banks steal,and our Congress drives the getaway car.
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Fraud Practices, Mal-Practice To Meet Targets.
Posted by Corruptbuster on 06/26/2006
BOMBAY -- This is with regards to my requirement of opening account with HSBC ANDHERI WEST branch in India, I approached them to open account with 600$/account ( Around 25000 INR) which is minimum requirement. I wanted to to open four accounts for my family. Made a start with opening my account first and rest three accounts after few days.

Few sales people convinced me to open premier account with 1.5 million INR (approximately 33500 us$)which I accepted with internet banking, debit card, phone banking and assurance to be served and answered for any problems within 24 hours.... with premier features.

To my wonder i found following rip off practices even before and while opening my first account:

1. Two persons in Bank stated that my immigration visa and passport both are invalid which was presented for id and NRI status, which was fixed up by their higher up.

2. My account was opened after 10 days for which i was promised within 24 hours and in last 4weeks internet banking not activated, inspite of many calls and emails.

3. My first email was replied after 12 days stating that i will need to deposit 2.5 million INR to keep premier account.(rest of questions not answered)

4. Till now no status on opening rest of three accounts, inspite all process carried out. However verbally account number has been sent to me by SMS( again a crude way of doing banking and opening account), but so far not received any official communication, check book or debit card.

5. Got letter from HSBC main branch that my internet banking is not included but my branch states that since I do not know how to register so i am not able to use internet banking, where as I have used all the banks in world with intenet banking.

6. Most of executives in HSBC India, are around the age of 21 to 27 freshly passed out of bank, who hardly knows how to respond to customer in professional way. They are just asked to do target to remain in job , by whatever means. These are the reasons why these crooks do all kind of manipulation to get customers, forgetting quality and professionalism using all defrauding practices.
All that they know is good English and a tie in neck by which they feel they could render good service is a real myth and brainwash.

This is another Bank in India apart from ICICI to be avoided since a customer can be taken for raid to any level to keep them in job to meet their targets. However my experience with HSBC in another countries are marvelous and great with my business accounts. thinking that I planned to open account back home, but got knifed by crooks.
I was cheated, wrongly promised of so many things. and till today , i am sitting on square waiting to hear for status of my rest of three accounts and activation of internet banking and , I am duped to deposit another 1 million to keep promised status of premier account.

The service really sucks.... the following people approached me and came to collect check of 1 million Rupees early in morning when I was sleeping apart from 1/2 million Rs. already deposited even without any update on account status and relevant facilities.....

BEWARE OF HSBC INDIA.

( also they sent me leather made accessories(along with first account check book and terms book let) which was refused and objected.But HSBC has no word on it for my ethics and feelings.)

     
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Posted by Alex70 on 2006-10-20:
I had even worse experience with this bank. But I sent e-mails and called their manager with my own expenses and warned them not to deposit my intial checks for about $40000 to open an NRE account for which they complained the same reasons you mentioned. They got frightened with my warning (that I will complain this to RBI and see that this bank is blacklisted) finally they called my cell# and apolozised, asked if I am still interested in opening account with them to which I refused to do so. On my request, they resent all my application documents along with undeposited checks by the weird DHL courier service which I had to pick-up personally and found that the application is as required. After that I opened an account with ICICI which is another bitter story as they did not provide debit card and check book even after opening the account 6 months ago. They even charged for the Taxes in INDIA for Rs 4 lakhs sitting in my NRO account unused because I cannot access it. After several call backs and comparing the CEO of ICICI as a huge who wants to have the whatever it looks like and where ever it is and hence he asked his people. I asked the CSR's to record all my talk and let their supervisors and CEO hear about my frustration. Finally they did sent me the debit card I guess which I am waiting to get back from this Stupid DHL service again, which I still expecting it to be delivered after it has been roaming here in Atlanta undelivered upon my several requests/enquiries landed in Alabama and scheduled to be delivered today with completely new updated tracking history showing the origin as Alabama instead of Mumbai India.
Posted by Soaring Consumer on 2009-05-25:
Whoa whoa don't post your credit card number in public!
Posted by DebtorBasher on 2009-05-25:
I had your comment deleted...NEVER, EVER Post all of your credit card info on any websites...Thanks Soaring, it was your comment that brought me here!
Posted by Anonymous on 2009-05-25:
No offense how stupid can people get.
Posted by DebtorBasher on 2009-05-25:
I have a feeling their bill will be alot higher next month.
Posted by DebtorBasher on 2009-05-25:
Not only the cc# Wally, but their first, middle and lastname, date of birth and mobile phone number...from India, but still fraud is world wide.
Posted by anotherloser on 2009-07-04:
I would say that HSBC sucks in all aspects. They are good as money extracting goons
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StarEmpty StarEmpty StarEmpty StarEmpty Star
HSBC, Best Buy and Deceptive Practices
Posted by Stygeon13 on 07/05/2012
My wife and I bought a large TV at Best Buy. My wife and I thought it was a large enough purchase, so we bought the coverage to protect us if one of us was disabled or if we lost our jobs. It was quite a large investment so we thought that was a good deal. The problem is, the deal is scam.

We were paying for the TV for quite a while and then, my wife lost her job. She wanted to see if she could get a job before leaning on the service policy we bought for just such an occasion. When it was obvious that she was not going to find a job quickly, she filed with HSBC, who was the lender BEST BUY USES. They said there was a time limit and that we were one or two days late. 1. There was never any mention of time limits. We just tried to do the right thing, and they used something we never saw. WE have tried to get the entire contract several times, but to no avail.

Best Buy just says, "we are not responsible," and just washes their hands of it. I wish I could lead folks down the path to destruction and then just say, "I am not responsible." Like shooting fish in a barrel. (In my humble opinion, Best Buy is responsible to the public for the instiutions they bring under under their roof and use as reputable companies. We, the consumer, who bought merchandise under their roof and are taking their lender at their request, IS responsible! We depend on them to steer us in the right direction. Otherwise, the should tell people up front that we have to find our own lenders when we make a purchase. Best Buys tacit agreement with these crooks makes them culpable. They are in enough hot water already. You would think this would be something that they would not like to be tangled up with. HSBC is clearly one of those dirty institutions with tons of complaints about things I would call fraud, but won't because I have not read the doc on those complaints, so can't really accuse them in those cases. As with our case, you don't need to see a fish to know there is something rotten in the area...
We will end up getting an attorney over this, but I wanted to let folks know up front what they will be dealing with if they buy something from Best Buy on terms. This will be our last not-so-Best Buy from this sinking ship... I say good riddance. One more dirty organization taken out by trying to do as little as possible for it's potential customers, (suckers).
     
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Posted by trmn8r on 2012-07-05:
What WERE the terms?

Did you have a loan that came with alleged protection in case of not being able to pay? Is the time limit they came up with from the beginning of the loan, relative to a payment due date, something else? I don't really understand what you thought the agreement was, and if you feel they did something outright wrong or took advantage of fine print in the agreement.
Posted by Pat T on 2013-02-04:
The problem is that the guy at the finance desk at BB tells you one thing and the written "agreement" that they give or send you AFTER you've accepted the card and made the purchase says something else - and "reading it" is nice advice but you've already bought the item and used their card to buy it. Then both BB says "out of our hands" and HSBC says "this is what the agreement says, you owe us." I paid the entire principal balance off in less than the promo period and told them (a) nobody said anything about "minimum monthly" so I'm not paying "retroactive interest" and (b) if this goes on my credit report I will sue you. Talked with 3 people before they agreed to "take care of it." But "take care of it" meant get me off the phone, don't contact me but don't reverse the charges - charge it off and sell the "account" to a CA that calls me over 4 years later. It's not on my credit report and it's now past SOL but every few years I get a call or letter from a new CA - I explain what happened, they make a note of it, they never call again but they sell the "account" to someone else who calls me. This is so outrageous.
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My Accounts on Hold for?
Posted by Dbrhee on 03/18/2011
SALINAS, CALIFORNIA -- I have cards on both them and I pay annual fee as I was trying to improve my credit score.. I have never missed a payment and I access everything online. One day, I was going through my accounting and accessing my credit card online accounts and I could not get into either one of them... The funny thing is that both cards were placed on hold at the same time... Note, I am moving to another state soon and I go down to see family..

So I called in and one is closed for business (6pm EST).. The other phone is 800 and I got through customer service. They directed me right to credit review department. Be aware, these cards don't even give you a credit increase and you are paying annual fee.. The ladies comes online and verifies me with multiple private information.. Maiden name, social, address, etc.. They obviously could tell that I am the account holder... She states for verification purpose that the accounts were placed on hold and they want me to mail my income, 2 utility bills, and social security.. I asked why? You have my information and I asked where is the notification? It is in the terms of agreement. So I stated then wouldn't you think you should notify before you place it on hold so you do not disrupt services? She stated that we did.. Really, then why would I be calling you and finding out now?

Also, you really think it takes less than 1 day to notify? To make the long story short... They have my information, they know I pay my bills.. Heck, I even told her when my last payment was (since I went into the account the week prior to pay my bills)... All she could state is that I have to wait and can't use the card until it is cleared.. SO you pay annual fee for service, you are denied service (and it is acceptable for them to place a hold).. Do you think you should get credit? I see why credit card companies are predatory.. They have no problem and demanding us pay right away but would do anything possible to deny service... And they could change terms whether they want..

     
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Posted by trmn8r on 2011-03-18:
The key to this is that there were holds placed on your cards for some reason. That is why they asked for your identifying information. This isn't typical. I have had credit cards for over 20 years, and never had a hold placed on a card.

Did they tell you WHY the hold was put on your account?
Posted by madconsumer on 2011-03-18:
are you self employeed?
Posted by unhappy999 on 2011-03-18:
I agree with trmn8r. I have used multiple credit cards for a number of years and never had to send in income, utility bill and SSN. I don't know why they would need all of this if you already had a line of credit with them and most likely, they already have your SSN. I did have hold put on one of one of my cards once due to a fraud alert. I had to call and verify that the charges were valid and that I was the one making the charges and they removed the hold. While it was inconvenient, it was for my own protection so it didn't bother me too much. I don't remember how I found out about it, I think my card was declined so I called the number on the back. I do not get any cards that have an annual fee, I only get the free credit cards. There are plenty of them to get that don't have a fee so I don't know what the advantage is of getting one with a fee. I get points with my Chase Freedom card and every so often, I go online and order a $50 check for my points.
Posted by Anonymous on 2011-03-19:
What the OP is not saying says a lot. I see "lowering credit score", and "never missed a payment". That just tells me there may be a large outstanding balance on the credit cards that could of led to actions taken by the lender.
Posted by Strangerthanfiction on 2012-02-14:
dbrhee... I am EXACTLY in the same situation as you. I filed a complaint with CFPB concerning this very thing (and other problems). When a representative from HSBC called to "discuss" my complaint, she told me there's no way I'd be asked those kind of questions.

After saying I had witnesses that HEARD them being asked, her story changed a little. The company had the right to verify information to be sure I was the actual account holder. Therefore, there were entitled to ask verifying information questions.

This was the exact same thing I have been told umpteen times already. I've asked, repeatedly, how answering irrelevant information, such as weight, cars driven, and a bunch of other survey type questions could prove my identity when my "legal" identifying information wasn't enough to verify who I was.

Furthermore, I NEVER provided such information to them in the first place so how would they know if the answers I gave were true or not. I was told the information they asked were a matter of PUBLIC RECORD and they could verify my answers that way.

So, PUBLIC RECORDS are more acceptable and will unlock my online access than private information? That means the public would have a greater chance of being able to get into my account.

BTW... everyone given advice or commenting on what the poster did wrong or had to do wrong... I hope you NEVER have to deal with this company the way I have. It is completely unreal. NEVER have I dealt with a company like this and I hope I never will again.
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Lies, and horrible customer service
Posted by Dougefresh91 on 02/23/2011

I am extremely frustrated, and at this point angry, with the way I'm being treated by HSBC in regards to my application for the Best Buy card.

In August of 2010 I applied for the Best Buy card online and was declined, however I was approved for the MasterCard, which I did not want, and which I did not accept. I have a steady, long-term job, and a credit score of 818 so I called to find out why I was declined and they said they'd send me a letter.

I waited about two months, and called a second time because I never received the letter. This time they said, "Oh good news! There's been a mistake, if you reapply you're sure to get approved!"

November 11, 2010, I reapply and again I'm declined for the Best Buy card, but approved for the Master Card. Again, I don't want the MasterCard, and again I don't accept the MasterCard. I call back for the third time, and again they promise I'll receive a letter within 30 days.

Two months go by, and I call for the fourth time to ask where's my letter and I'm told again that there's been a mistake and to reapply. I don't think so! I told them I don't want to reapply a third time, I want the reason of why I was declined. So I'm promised for the third time that I will receive a letter within 30 days.

So, I called them yet again yesterday, February 22, 2011. I received the same song and dance again, and they promised me they'd send me the letter of why I was declined.

Well, at this point I don't even want the card anymore, and I'm ready to stop shopping at Best Buy on top of it I'm so annoyed. If all this wasn't bad enough, my mother called me to inform me that HSBC has sent a MasterCard in my name to her address. She lives in a completely different state then me! How does this happen? The didn't even put my full name on the card! I would never apply for a card without my full name, not to mention my mother's address.

I will never, ever do any business with HSBC after this experience.
     
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Posted by Christine in NY on 2011-07-20:
I am going through a very similar situation. My husband applied for the best buy card and got declined but was approved for a rewards card (MC) we didn't want it. It came in the mail and we NEVER activated it, in fact we shredded it. I called and supposedly got it all straightened out and cancelled. Well now we are getting Bills that say we have late payments????? on the annual fee! I have called twice now and the last time I said "look! we don't want the card it was never activated stop trying to ask me why we don't want it!" close the account and Fix the late fees and all fees for that matter and TAKE THE NEGATIVE MARK OFF MY HUSBANDS CREDIT REPORT!" She said she did it and I would be receivng a letter....We'll see. I have a feeling this crap is going to lead to a class action law suit with these people. geez it's so frustrating!!!
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Defrauded and lied to
Posted by Bm2492 on 12/18/2010
Beneficial/HSBC is doing the same to myself and my family. We ran into difficult times a few years ago and we were convinced by them to refinance with them to catch up on the cc bills which were run up prior to this. The terms of the loan changed when we arrived the first time so we walked out. We were bothered for days following promising us this was temporary and we would be refinanced at a better rate within 6 months when their new 'program' comes out. Well here it is 3 + years later and no new programs. We are in tough economical times and my wifes business isn't doing well. After paying over $100k in interest, we have made partial payments for the past 3 months and we have received a foreclosure notice. I called to see what we could do to work it out and was told that they will work with us to Exit the house..Ill be damned if I walk out and let them have it! They over valued the residence and we are unable to refinance! I too agree that we need to initiate a Class action, please email me if you are interested in participating. bm2492@Hotmail.com


     
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Posted by Alain on 2010-12-20:
This website is is probably not the best place to initiate class action lawsuits. Have you tried getting a free consultation with an attorney?
Posted by bm2492 on 2010-12-24:
Its hard to find a lawyer willing to take them on as they are pretty heavy lobbyists. I was trying to post whereever i could to drum up interest.
Posted by bm2492 on 2011-01-04:
Are there not anyone else interested in a class action lawsuit against HSBC
Posted by jktshff1 on 2011-01-04:
bm, no one would make money but the lawyers.
Posted by Sey on 2011-09-19:
Posted by Sey on 2011-09-19:
Please consider submitting a complaint to the State Attorney Generals Office.
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Um....Really?
Posted by Livebyexample on 12/10/2010
I have had a Gold MC for longer than I can remember, have always paid my bill on time and have spent and paid off tens of thousands of dollars. I received a letter to make a purchase on my $11,000 limit, zero balance account or my account would be closed. I meant to and was in the middle of moving from Georgia to California and never made the purchase. They consequently closed my account, my debt to income ratio went down, my FICO plummeted and my credit was strongly negatively affected. I am very dissatisfied about that but rely on my other credit cards who have not cancelled on a customer who has never been late, paid tons of interest over the years and always carried the card on him when leaving the house. I see MC applications online and in the mail and always ignore them as they have turned their backs on me regardless of how it affected my credit. I have seen the news stories that relate how credit card companies consider customers who don’t pay much interest and never any late fees to be the real deadbeats since the company doesn’t make much money on them.
     
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Posted by trmn8r on 2010-12-11:
I don't believe those stories are true, because I have never in 23 years of regular credt card use have paid a fee or any interest.

Yet when I have called, I have been treated wonderfully. Several times a CSR has said "Mr. XYZ, you are one of our best customers!" which I attributed to the fact I use my card often and always pay it off.

Credit card companies make 2-3 percent on each purchase made. That's a lot of money.

They warned you to use the card, but you didn't.
Posted by Fufu487 on 2010-12-11:
What happens a lot of times is when an account is not used it gets flagged dormant. Especially at a balance of zero. If dormant for so long the account may close itself. They called to warn you to use the card or it may become closed. I'm interested in what kind of time frame they gave you to make your purchase.
Posted by rockfishing on 2010-12-11:
You are the one who is at fault, not HSBC. They gave you fair warning to which you chosed to ignored. When you have a credit card you agree to it's terms and conditions. HSBC terminated you because you ignored them. I can't blame a company closing an account with an 11K limit that is ignored.
Posted by tnchuck100 on 2010-12-11:
They told you to do X or Y would happen. You did not do X. They did Y. End of story.

In fact most companies don't even warn you at all. Take American Express for example. You find out about the account being closed when a purchase is declined.
Posted by momsey on 2010-12-11:
You ignored them, they did what they said they'd do.
Posted by madconsumer on 2010-12-11:
if a card is not used for a certain amount of time, they close the accounts. odd but true.
Posted by NickL11354 on 2010-12-11:
The credit card issuer was probably surprised because most people would jump at the chance for $11,000 in available credit. Think about all the designer clothes, electronics from Apple & Best Buy you can get for $11,000?? How else do you think they are being bought other than most people charging thousands of dollars on credit for which the bank collects 15% - 25% APR (plus merchant fees) and the consumer spends 2, 5, or 15 years paying the bill
Posted by Inat on 2010-12-11:
happens to me all the time - you gotta use the credit to keep it! Buy a tank of gas and pay it off.
Posted by trmn8r on 2010-12-11:
madconsumer -> It isn't really odd. It costs money to maintain an account, and it doesn't do the bank any good to have a customer who is able to borrow 11K but it borrowing 0.
Posted by Fufu487 on 2010-12-11:
It's also for consumer safety (though I'm probably going to get reamed out for stating it). Imagine you have a 9K credit card you forgot about, haven't used in 6 or 7 months, that gets frauded somewhere down the line. If you aren't watching the account, as inactivity would suggest, it could receive fraud charges and not even notice for months. You won't believe how often people throw out statements in the mail because they think it's junk, knowing they haven't used the card. Banks have a right to protect themselves.
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HSBC (Direct Merchants Bank) unjust treatment of customer
Posted by Ldickson67 on 09/11/2010
CITY OF INDUSTRY, CALIFORNIA -- I hate HSBC and will tell anyone who asks me to NEVER get a card issued by HSBC. I have had my account for several years and have never missed or even been late on a payment. Actually, I have generally paid more than the minimum amount due. However, due to "a business decision" as I was told they raised my interest rate from 14.99% to 19.99% and supposedly sent me a letter, those letters that none of us read as we get three or four a week and deem them junk mail. I have been a very good customer for HSBC and this is how they decided to reward me. I am trying to get out of debt and companies like this take advantage of the middle class working their asses off that aren't able to instantly pay off their credit cards. I hope their business suffers and even goes under in this economy. That's what they deserve for such crappy treatment of their customers!!!
     
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Posted by werelucky on 2010-09-11:
You accepted the terms of the credit card. It is your responsibility to read the fine print and understand the terms. It's like sticking your hand in a hornets nest and complaining you got stung. The best thing to do is have no credit card debt. Get two or three jobs to pay it off. Then, don't spend more than you have.
Posted by leet60 on 2010-09-11:
With most credit card agreements you agree that they are allowed to periodically review your credit profile. If they see late payments, a higher debt to income ratio or too many inquiries they have the option to modify the terms of your agreement. This is not only HSBC but almost every credit card issuer is the same.
Posted by bcd on 2010-09-11:
Since 2/22/10 credit card companies are not permitted to increase the interest rate on existing balances. If you had read the letters you would have had the opportunity to stop using the card and therefore not suffer the rate increase.
Posted by Nohandle on 2010-09-11:
Please in the future open what you consider junk mail. I learned that one a few years back after almost throwing a rebate check in the trash.
Posted by MaggieMcT on 2010-09-12:
I'm not sure why it would be their fault that you didn't read the letter?
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