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HSBC Complaint - Payments over minimum
Complaint
I just got off the phone with HSBC. Last month I made a payment of $84 over my minimum payment expecting that the higher interest balance would be reduced by that much. While looking at the statement this month, it showed that the balance due on that higher rate only went down by $36.65. The customer service representative told me that the amounts showing on my statement were average daily balances and that that is not what the balance was on that higher rate. Sounds a little off to me being as the interest charged on that higher rate was well over half what it was last month and the overpayment would have brought the balance down to less than a third of what it was.
The representative told me that this would be adjusted on my next bill. Does this mean that it really wasn't applied properly and that since I caught it they are going to fix it? I don't really know. I do know that I will be watching all my statements carefully to make sure that payments are being applied in the manner that the agreement spells out and that I will call and question this anytime something just doesn't add up. I am willing to live up to my end of the bargain and pay this up, as long as they don't try to take advantage of me in the meantime.
This is basically just a warning to carefully monitor your statements and to question anything that does not appear to be right.
The representative told me that this would be adjusted on my next bill. Does this mean that it really wasn't applied properly and that since I caught it they are going to fix it? I don't really know. I do know that I will be watching all my statements carefully to make sure that payments are being applied in the manner that the agreement spells out and that I will call and question this anytime something just doesn't add up. I am willing to live up to my end of the bargain and pay this up, as long as they don't try to take advantage of me in the meantime.
This is basically just a warning to carefully monitor your statements and to question anything that does not appear to be right.
Comments:
Posted by raven2010 on 2010-07-24:
I'm sorry, but this is exactly how bank cards work. It's all explained in your agreement.
Posted by Skye on 2010-07-24:
I concur with Raven.
Posted by Red0727 on 2010-07-25:
I just think that it is misleading and another way to get around applying paments the way they are supposed to be. No where on the page with the amounts listed does it say that these are average daily balances. I guess as a consumer I need to get out the agreement and cross reference it with my statement, then try to figure out if payments had been applied correctly. And here I thought things were supposed to be made easier.
Posted by raven2010 on 2010-07-25:
Red, the are applying payments exactly as your card member agreement indicates they will be applied.
Average daily balances are used on just about all revolving debt. And yes, your statement will indicate somewhere they are using ADB.
Average daily balances are used on just about all revolving debt. And yes, your statement will indicate somewhere they are using ADB.
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