HSBC North America Chief Executive Brendan McDonagh said favorable business trends seen in the third quarter have continued in the fourth quarter. What McDonagh really means is that the HSBC credit card business is more profitable now that HSBC raised your rates and cut available credit.
“We have a profitable business, we are increasing the profitability of that business, and so we will just continue to run this for another couple of years and then will take a look at it,” McDonagh said.
Denise in California said “HSBC keeps charging me a $12.00 fee if I pay my 1-3 day before it is due stating that it’s expedited payment. Is that legal?”
Our complaints blog receives daily complaints about credit limit reductions, while complaints of rate increases to 29 percent are received on a daily basis. HSBC monthly payments remain the same, thus guaranteeing it will take 40 years to pay off accounts at the minimum payment due.
HSBC reported that its U.S. credit card division, the third largest issuer of MasterCard-branded credit cards, was profitable in the third quarter. Analysts say questionable HSBC policy on timely payment processing helps HSBC maintain profitablility. Card holders report many problems with payments considered to be late even when paid early. Each instance results in an additional $39 charge.
McDonagh said HSBC’s U.S. credit card division was not for sale, months after the bank said it could consider disposing of the division if the problems in the business intensified.