• Report: #429383

Complaint Review: HSBC Household Bank

  • Submitted: Sat, February 28, 2009
  • Updated: Fri, July 31, 2009

  • Reported By:Slidell Louisiana
HSBC Household Bank
www.hsbcusa.com , New York U.S.A.

HSBC Household Bank The Ripoff Of A Lifetime Lowered Credit Limit by $3,410 & then charged an overlimit fee & raised interest rate New York

*Consumer Comment: This is typical Behavior with HSBC. Lowering available limit without notification and charging overlimit fees.

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I was a stellar account holder for this company, paying them $250 per month when the minimum payment was only $20 bucks. Today is Feb. 28, 2009. Two days ago, my credit limit was $4,300. My balance is $900. I went to the pharmacy to buy a few things for $40, and my card was denied 5 times.

Came home & called them and found out that since my last payment the day before (which was $100 this time), they had reduced my available credit from $4,300 down to $890. This is a $3,410 reduction in my credit line (funny number, eh?). I guess they had to lower it just a WEE bit beyond my balance (hence the $10) so they could claim that I was now OVER THE LIMIT. They did all this behind my back, and had I not tried to use the card, I never would've known until my statement arrived.

They claimed it happened to me on February 18th, but I assure you that nothing suspicious ever turned up on my online account. They also raised my interest rate to 19.99 percent for being an outstanding customer. When I told them to close my account immediately, the guy on the other end of the phone expressed his regret to see a "good customer" leaving. I said you are full of s**t because if you cared to begin with, your company wouldn't do something like this to anyone.

Beware of this bank. I've never been so shocked in my entire life and I am 50 years old. And think of how it now looks on my credit report (I'm afraid to find out). Instead of having a lot of unused credit (which I hear is great for your credit score), I am now likely being reported as over the limit. Ain't that just great? How can these banks keep getting away with heinous practices like this and keep being rewarded by the federal government with huge sums of taxpayer bailouts??? Why must the American public continue to take such abuse from failing companies and the political system in this country???

This company has RUINED MY STELLAR CREDIT and it will take a long time to recover from this. I have never been SO ANGRY IN MY ENTIRE LIFE. I just can't stop being mad as h*ll. And there's nothing I can do about it, right? Businesses and banks all need to succeed while the rest of us spiral downward until we're living under an overpass? I'm sick of American Greed. And it runs this country, which is why we are where we are now.

I guess they might've been pissed off because I would never max out my card, despite the number of times they RAISED my credit limit (which started out at $1,500). In a years' time, they raised it to $4,300. Sorry I didn't spend it all, but that's another reason we're all in trouble because NOBODY PAYS CASH FOR ANYTHING ANY MORE IN THIS STUPID MORONIC NATION. If you don't have the cash to back it up, DON'T BUY IT.

Slidell, Louisiana

This report was posted on Ripoff Report on 02/28/2009 09:48 AM and is a permanent record located here: http://www.ripoffreport.com/r/HSBC-Household-Bank/New-York-10002/HSBC-Household-Bank-The-Ripoff-Of-A-Lifetime-Lowered-Credit-Limit-by-3410-then-charged-429383. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Consumer Comment

This is typical Behavior with HSBC. Lowering available limit without notification and charging overlimit fees.

AUTHOR: Alicia - (U.S.A.)

I have had this happen with HSBC a number of times.
I had two account with them, or so I thought. When I paid on line I was shocked that my next statement showed up with late payment fee. It turns out the cards were one in my husbands name and one in mine they delayed accepting the payment because they claimed it was not the account holders payment. They wanted $80.00 in fines. They graciously reduced it to $27.00.

Then they sent me another statement with a late/missed payment fee within 11 days. I figured they had not updated my resolution. OHHH no!

They changed my account to a gold account and never closed the old account (all without noticing me) and the payment was put on the new count which had a zero balance. So I had a credit on this new account and no payment on the account I owed on. In turned I was being charged for not making the payment.

They were willing to reduce the fee. I threw a fit. In 64 days of calling I was told they would make an exception
BUT I could not accept for any more favors from them in a year.

Then it happened!
My card was fine and I used it for 3 small purchases.

$38.00 for gas
$17.00 for Mc Donald's
$12.00 at Target.

I got a bill that had a $40.00 over limit fee on each of these three purchases.
That $120.00

I had a $3,000.00 limit as of my last statement.

My limit had been reduced to $340.00 and I had balance of a $354.00. I was charges $40.00 dollar fee, because the credit limited had been lowered to below what I owed.

That's a total of $160.00 in fine incurred before they ever informed me of the new lower limit.
They never claimed to have informed me. In fact when I spoke to a Service rep. (also in India)
They had the nerve to tell me I could have checked my balance online or by phone in order not to go over the limit.
I guess I was at fault in not using me ESP in order to know they were thinking of lowering my limit by near $2,600.00.
I couldn't get anywhere with them.

The best is yet to come.
My interest rate went from about 18% for a whopping 28+%
Because I had gone over the limit.

So when I went ahead and paid off the account in a tiff I was told my balance was 0.

Oh but them came the next months statement. If showed a charged of $28.43 for the amount incurred in interest before the 8 days they decide to wait to credit my account for my final payment.

I thought I'll call and clear this up.
I did accrue interest until they decided my payment was cleared.
I asked to have this fee waived since I had been told my balance was 0 after I made the payment when I closed the account.
Yes I did specifically ask I don't you anything else?
That means all charges will stop?
That leaves my balance at zero!??
Well they would waive the fee except they had waived a fee a few months ago when I cashed in my once a year FAVOR!

I have seem pyramid schemes, an make millions at have stuffing envelopes scams with less gall in ripping you off.

By the way I had to pay $16.99 to make they payment by phone rather than risk another over-limit fee if I made it by other means.
Pretty much we date you to play Russian roulette and try to get the payment faster than we can access another fee.

The rep. literally said I could choose pay the $17.00 or Pay $40.00 when the payment is late.

This bank makes Madoff seem ethical.
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