LE in New Jersey said: “I had an HSBC card since 2001. It had been inactive with $0.00 for several years. In 2007-2008 I decided to close-out my lower limit credit cards and subsequently called HSBC customer service to close it out. There was no further communication until I received a bill in 11/2008 for their annual fee. I immediately called customer service (rep in India) and he assured me they would remove the fee and close my account as previously requested.
I did not give this a second thought until a month later I received another bill, this time with a late fee added. Called Customer service several more times (India) and received the same type of assurances; called several more times to confirm and was told all was settled.
The second month another bill comes in, now they added another late fee and reduced available credit to $400 ON A CLOSED ACCOUNT!! So I called customer service several more times (this time with USA rep) to get it resolved and got assurances (this time in writing) that they would remove annual fee and close my account. Another month goes on and I get informed by AMEX Platinum that they have removed my flexible payment option due to serious delinquencies in other accounts.
I immediately check my credit report and see that HSBC has closed my account (says closed by guarantor!!) but reported me as been late 60 days and not paying off the annual fee! My FICO score drops from 787 to 681!
I am in the middle of refinancing and can’t secure best rates and need to pay points (thousands of dollars because these ***holes!!!). I am disputing with credit bureaus but I am sure it will be several months of back and forth before this gets updated by all three credit bureaus. Unfortunately, my refinancing and second home purchases are put on hold and maybe cancelled if interest rates go up! THANKS FOR HELPING OUT THE ECONOMY. –THEY DESERVE A BAILOUT!
The entire HSBC system is geared against you. They lower your FICO score the more you pay; regardless of the true risk of borrower (Some of my friends have a higher FICO score; make a fractions of my salary; little savings and struggle to pay their bills every month; one negative event and their finances collapse) . When you do not fall into the traps; they invent other ways to drop your score (closing accounts; lower limits, etc). Some business models (Capital One & HSBC) prey on low FICO scores and their quick trigger on reporting derogatory information helps them keep your score low and limiting your options on other products.
I for one am looking for ways to get out of this whole credit game!”
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