HSBC - Household - Direct Merchants Bank, credit line decrease, apr increase Baltimore Maryland

I have 2 credit cards with HSBC: one from Household Bank and the other from Direct Merchants Bank.

2 unusual things happened within 3 months of each other

1. Household Bank decreased my credit line from $3000 to $305 for no reason. I have called their credit services but they could do nothing for me since their records stated they sent me a letter to explain the reason for the credit line decrease. I never received such a letter. They indicated that the reason it was decreased was due to inactivity, which is not true. I decided to close the account when they refused to reinstate my $3000 credit line.

2. Direct Merchants bank increased my APR from 13.99 to 19.99 and for "cash advance" they increased from 19.99 to 29.99. I had used the card to transfer balances and had taken advantage of the rate reduction at the time. My credit line is $6800 and my balance is around $5075. Now the interest totals $120 for this past cycle and the minimum payment is $138. Interest and min payment skyrocketed! I contacted HSBC and they told me that it was a "business decision" and could not reverse their decision. They also stated that I received an opt out notice and change of terms in early December, but I never did.

I verified addresses both times and I still get my monthly statement for both accounts and I receive them every month. I also have NEVER been late on these 2 credit cards and have not been delinquent on any card in over 6 years. They are preying on their customers and this is a poor business practice. They are not easy to understand and they will do NOTHING for you to help.

Ernie
Chicago, Illinois
U.S.A.