HSBC Card Services Complaint - Go over the limit and trigger "Default Interest Rate"
SALINAS, CALIFORNIA -- I recently had my interest rate on my HSBC credit card doubled from 14.90% uo to 29.99% for all future charges & all balances on the account because I "triggered" the default interest rate.
In 4 yrs of having this account, I have never been late nor have I ever exceeded the credit limit. On many occasions I make payments of 5x's the minimum paymnet due or pay the balance off completely & there have even been months where I have paid in excess of the balance and left myself with a credit on the account. Additionally I always make my payments within 7 days of receiving the statement so it is paid well before the due date. So here is how HSBC rewards this good customer . . .
On 9/26/2009 my wife made a charge at a salon that put the account OVER THE LIMIT by $61.00
Now rather than DENY the charge HSBC allowed the charge to go through apparently "to avoid the embarrassment of a denied charge". For this favor I was charged an "over the limit fee" of $30. But the fun doesn't stop there . . . not only am I being assesed this $30 fee (which according to customer service is not possible to have reversed) but my interest rate is being doubled effective December 1, 2009 from 14.50% up to 29.49%
I understand the fee, but they say it is IMPOSSIBLE to reverse the interest rate charge and that they will be HAPPY to review the interest rate after 6 months of ON TIME payments, but I HAVE NEVER BEEN LATE
This is ridiculous and borders on criminal