Please read this report carefully, paying attention to the dates. Then you will fully understand why HSBC Finance needs to be regulated, fined, sued, and shut down. Keep in mind the person being abused cannot sue, and an HSBC contract means you waived all rights:
I have been current and under the limit on my Household (HSBC) Bank credit card for one year, until I was billed the annual fee in February, which put me $62.33 over limit, with a minimum payment due of $78.33 on March 11. When I went to make my payment online, I had been assessed an over limit fee on February 12, which pushed my minimum payment due up to $108.33. At that time I could not afford the total amount due, and did not make my payment.
The next month I was past due and a representative from Household (HSBC) called on or around March 16th. I advised him my frustration over the over limit fee being assessed after my statement went out. He agreed to waive that fee as well as the late fee and the payment by phone fee. He said I would have to pay $170.00 by the last day of the month, so I agreed, as I had not seen my new statement. I set up a payment over the phone with him, and he waived a late fee of $30.00 and an over limit fee of $30.00 as well as the pay by phone fee of $12.95.
After I spoke with him I checked my statement online and saw I only owed $124.29. I called the toll free number and got a rep in India. I asked him why my payment had to be $170.00 and he said it only had to be $124.29. I asked if I could change my payment to the $124.29 due and if I would be well under my limit after it posted. He advised I would. I asked him if he would honor waiving the phone charge fee, and he said he would make sure the payment by phone fee was still waived. I set up the $124.29 payment to be drawn at the end of the month.
The next statement showed I was assessed ANOTHER over limit fee on March 25th – – a date in between the date I made the payment arrangement and the date the payment posted! I was also charged the $12.95 pay by phone fee which I was assured would be waived. I was AGAIN over the credit limit – – this time by $5.63. I called Household (HSBC) and wanted this corrected immediately. The rep I spoke to said they were unable to waive anything for me as they had already waived two fees for me the previous month.
As for the phone charge fee, I was advised there was nothing that could be done for it, either. During this time, my father-in-law became diagnosed with terminal cancer and was in and out of the hospital. He passed away on April 23rd. Over those weeks, I was staying at my in-law’s home and did not have access to any information, card number, statement, etc, and quite frankly at that point, the LAST people I wanted to deal with was Household (HSBC). I then received my May statement, which showed I had a payment due of $93.49 by June 8th. I planned on paying $150.00 so I could get WELL UNDER my credit limit. I went online to make my payment on June 1st and it prompted me to go directly to PAY MY BILL, but did not show a dollar amount due.
I thought that was strange, so I went into my Account Overview page. My “minimum amount due” was not $93.49 as the statement showed. Instead it was now $123.49! THEY HAD CHARGED ME ANOTHER OVER LIMIT FEE ON MAY 29TH! I paid $150.00 online and immediately called Household (HSBC). I spoke with “Beverly” who was nice enough – – however, when I was questioning her about the over limit fee and the date it was assessed, she was not giving me a clear answer.
I was asking her HOW they could send out a statement and add a fee on AFTER the statement was sent and BEFORE the payment was due.
Doing so would obviously set me up to be over the limit AGAIN in June if I hadn’t checked online. After a few minutes of going around and around, Beverly told me, “If you are over limit when we send your statement out and you don’t pay it immediately, we charge you ANOTHER over limit fee every 15 days. I was so disgusted I ended the call.
The next day I went to my post office box. I had received a notice from Household (HSBC) reminding me my $93.49 payment was due June 8, 2007. It had an envelope to MAIL IN my payment, AND it was dated May 28, the day BEFORE they assessed me another OVER LIMIT FEE! The ironic thing is I was a collector for credit card companies for many years, and I have NEVER heard of this before.
Every credit card company I worked for assessed over limit fees at the time of statement closing, and DID NOT charge one in a current billing cycle. I have several other cards and NONE of them use this practice. Any fees are assessed when the statement closes, and unless something is charged on the card those figures stay the same until the due date.
This method of Household (HSBC)’s seems completely unethical, and a complete scam. Household (HSBC) is setting its customers up for failure and raking in loads of cash, I’m sure. Please direct me to where I can report this activity. I am sure a lot of people don’t catch it, don’t understand how credit cards work, just take Household (HSBC)’s word for what they owe, or have given up trying to get any resolution. Although I am paying my card off ASAP, I am going to keep on them until I get some sort of resolution.