PSA: HSBC Credit Card sucks

[Icepick]

I had my first account with a small local bank when I was 10 and later kept it at HSBC when they took them over. I've been a customer of this bank for many years now. I've had my credit card with them for years. I glanced at my credit card statement last month and noticed that they had raised my interest rate to 32% :shocked:. They didn't even notify me of the rate hike. I didn't know that interest could even be this high? That seems akin to loan sharking to me.

So I called customer service and demanded that my rate be lowered. They acted very nonchalant and told me that they would "check for any lower offers related to my account." Well, they told me that no, there weren't any and there was nothing they could do. I proceeded to threaten to take my business away from them and threatened to close down the account and they were like "I'm sorry to hear that. Would you like me to begin processing the closure for you?" WTF? Everyone I talk to states that when their rates go up they just call and get it lowered again very easily by threatening to take their business elsewhere. Are they lying?

I have been a very good customer and have paid my card off on time regularly and usually keep no balance on it. Indeed, I have not even used it or had a balance on it in several months. Could that be why they are eager to get rid of me? If that's not the reason for their idiotic interest rate then I have no explanation for what happened. Thoughts?

So here's what I did. A quick Google search revealed plenty of credit card resources. I quickly found an offer given by a reputable competitor for a Signature Visa with a 0% interest for 12 months on transfers. After that the interest rate would be 9.99%. This is much, much better than what I had with HSBC. I completed my registration on line and was approved within 10 minutes of hanging up with HSBC. So long suckers (HSBC)!!

 

[Capt Caveman]

If you're not paying an annual fee or carrying a balance that generates them interest then you're costing them money. They probably feel the same way.

 

[d33pt]

32%?!? is that even legal?

 

[Saga]

I feel the same way about Chase right now.

 

[OutHouse]

I have been a very good customer and have paid my card off on time regularly and usually keep no balance on it. Indeed, I have not even used it or had a balance on it in several months. Could that be why they are eager to get rid of me? If that's not the reason for their idiotic interest rate then I have no explanation for what happened. Thoughts?

yip, they arent making any money on you so why give you a lower rate.

 

[hanoverphist]

i have a HSBC credit card too. once i pay the last bit off, i ill cut and cancel as well. asshat policies and asshat support people. but ive only been a customer for about 6 months and i found this out.

 

[imported_FishTaco]

Maybe there's a mistake on your credit report which lowered your credit rating which caused HSBC to raise your rate.

 

[KaChow]

Let me know how long it is after you cancel and start getting offers for an HSBC credit card in the mail.

I had a Providian card and Washington Mutual bought them out a while back. I didn't use the card for 11 months and they notified me they were cancelling it due to lack of activity. I called them and asked them if they could keep it open if I made a purchase with it on occasion and the reply was a stern NO. Not one week after it was cancelled I started getting a flood of card offers from them in the mail. WTF?

 

[Icepick]

Originally posted by: KaChow
Let me know how long it is after you cancel and start getting offers for an HSBC credit card in the mail.

I had a Providian card and Washington Mutual bought them out a while back. I didn't use the card for 11 months and they notified me they were cancelling it due to lack of activity. I called them and asked them if they could keep it open if I made a purchase with it on occasion and the reply was a stern NO. Not one week after it was cancelled I started getting a flood of card offers from them in the mail. WTF?

Haha. That's an example of the right hand not knowing (or caring) what the left hand is doing. Great way to instill a sense of brand recognition.

 

[Icepick]

Originally posted by: hanoverphist
i have a HSBC credit card too. once i pay the last bit off, i ill cut and cancel as well. asshat policies and asshat support people. but ive only been a customer for about 6 months and i found this out.

:thumbsup: If I recall correctly, they were one of the first large banks that do business in the U.S. to have outsourced their call center to India. I remember this from a NY Times article on outsourcing from way back in the '90s.

 

[Beev]

I've already cut my HSBC card up. It's almost paid off and then I'm closing the account.

 

[austin316]

Originally posted by: Capt Caveman
If you're not paying an annual fee or carrying a balance that generates them interest then you're costing them money. They probably feel the same way.

not true. they get kick backs from visa/mastercard. For example: on visa purchases, stores are charged a 1.5% fee for accepting Visa. Visa then kicks a percentage of that amount back to the bank (HSBC).

 

[austin316]

Originally posted by: Citrix

I have been a very good customer and have paid my card off on time regularly and usually keep no balance on it. Indeed, I have not even used it or had a balance on it in several months. Could that be why they are eager to get rid of me? If that's not the reason for their idiotic interest rate then I have no explanation for what happened. Thoughts?

yip, they arent making any money on you so why give you a lower rate.

not true. see my post one spot above.

 

[mugs]

Originally posted by: d33pt
32%?!? is that even legal?

In most states, no. But they get around it by doing business out of states that do allow higher rates (i.e. North or South Dakota and Delaware)

 

[NuroMancer]

Originally posted by: Capt Caveman
If you're not paying an annual fee or carrying a balance that generates them interest then you're costing them money. They probably feel the same way.

They get a % of every purchase you make with it. So no, if he is spending money, they are still making money. The % they recieve is typically higher then any annual fee...

 

[austin316]

Originally posted by: NuroMancer

Originally posted by: Capt Caveman
If you're not paying an annual fee or carrying a balance that generates them interest then you're costing them money. They probably feel the same way.

They get a % of every purchase you make with it. So no, if he is spending money, they are still making money. The % they recieve is typically higher then any annual fee...

REPOST. LOL.

 

[SoulAssassin]

Originally posted by: mugs

Originally posted by: d33pt
32%?!? is that even legal?

In most states, no. But they get around it by doing business out of states that do allow higher rates (i.e. North or South Dakota and Delaware)

Your welcome. And thank you all for making credit card purchases which eventually make it down to corporate taxes in DE which keep me from having to pay sales tax.

 

[Muadib]

Originally posted by: FishTaco
Maybe there's a mistake on your credit report which lowered your credit rating which caused HSBC to raise your rate.

I agree that he need to get a credit report asap. My HSBC card has 8% rate.

 

[Parasitic]

Why would you even get a card with HSBC in the first place? Aren't there better cards out there?

 

[AznAnarchy99]

Closed it the moment i received it in the mail.. they gave me a $300 credit line...

 

[andylawcc]

i still use my HSBC infrequently, only because it is recognized in Asia, and sometimes get me discount in certain retailers in HongKong. (using a CC in Hong Kong is a bit different than US, some retailers offer incentive for you to use a SPECIFIC company's Visa OR Mastercard, you often can get 10% off if you use the right card, and HSBC is usually one of them)

 

[Dulanic]

I have had my chase for 4 years now and about one year ago they bumped it up to 28% and I can call every 6 months to get it dropped 2%... so basically it will take me 7 years to get back where it was. The only reason I still keep the card is I can not find a better cash back card then the chase freedom, and I haven't paid interest in all 5 years since I always pay off my running balance.