I worked for HSBC for almost 10 years and hated every second of it. They dont care about their employees or customers and I often was on probation because I couldn’t stomach telling someone who paid for credit insurance for 10 years that they couldnt use it because they needed to notify the bank within 60 days of becoming unemployed to use it.
I mean shouldnt you give someone credit for trying to get by without using the coverage and not punish them for NOT using it right away (who is thinking about a credit card bill when they just lost all income and are worried about their home and food).
On top of that HSBC policy would not give credit for fees paid in this situation (I usually gave credit in full in these circumstances because the coverage is a scam to begin with but to not allow someone to use the meager benefits when they need them is terrible).
I read these posts and feel terrible for the people in these situations, but the truth is HSBC is not doing anything more or less dishonest than other credit card companies. In fact the Yamaha, Best Buy, Helzberg Diamond cards are a great deal if you budget and make sure you can pay off the balance in a year so you don’t get charged interest.
The problem is we only budget in the minimum payment and don’t think about the fact we will have to pay interest in a year. We can’t blame HSBC for chanrging the interest they told us they would after that year ends.
I know it is frustrating to pay thousands of dollars over what was borrowed on a credit card but when we keep making the minimum payment very little will go toward the principal which means the balance won’t go down very much.
The worst cases I saw were with Yamaha accounts. People consistently bought $5,000 four wheelers because they could afford the $50 payments for the first 6 months and didn’t think about the fact they would have to pay the full amount and interest after that.
We can all have everything we want right now by buying things on 0 interest credit cards and making minimum payments but instead of getting hammered when the promo runs out we need to save and budget.
The other big issue I saw constantly is that people do not read what they sign on the application or look at the statements they are sent. The application says in bold print sign here for optional credit protection for $xxx but so many people sign that in addition to signing for the card and then a year later are upset about the fees that are on the statment every month.
As much as that coverage is (in my opinion criminal) a lot of people want it and if you sign for it the bank thinks you do too.
There is an easy solution if you do sign by accident and that is to cancel it when you see the charge on your statment but too many people expect things to be the way they think they should be and don’t check.
Unfortunately the people who do this are sometimes not employed to begin with and are literally throwing money away.
Everyone gets some bad luck here and there and there are things beyond our control but we do not have to buy a 4 wheeler on a credit card or buy a new Plasma TV tomorrow on a whim.
If it fits in your budget and you can pay off the item in the promotion and avoid interest that is great, I do it all the time and when I became unemployed 6 months ago nothing changed because I was not over extended.
The best way to hurt HSBC is not to stop being a customer it is to use as much of their money as possible without ever paying them any interest. If we dont pay interest late fees, or insurance, they actually lose money on us.