HSBC Witholds Payoff Terms and Takes $1500
MC in Tennessee reported: “I hope that you guys can help me. I am having a problem with HSBC Retail Services. I bought a Mitsubishi Big Screen TV and some audio equipment from a merchant on an 18 month “same as cash” plan which came due on June 9th, 2007 in the amount of approximately $4000.
On June 5th (4 days prior to the deadline) I contacted HSBC via telephone to pay off my account. I had just paid off a credit card and was going to pay off my 18% APR with HSBC with the 1.99% APR on my card. I was informed that HSBC would not take a credit card number over the phone, that I had to go to their website and create an account to do that.
So I did. After going through all of that, EVEN ON THEIR WEBSITE, you cannot pay with a credit card. You can only pay by “e-check”. I called them back and was told “sorry”. To make a long story short, I called my credit card company, had them go ahead and issue a check to HSBC (it was processed out on the 6th, still 3 days ahead of my due date, so I had the funds available to me). The check was not processed by HSBC until the 20th. I also created a complaint on their website and was told that a customer rep would be back in touch with me WITHIN 24 HOURS. They actually got back to me on the 19th, the day before they processed the check they were sent. I have since written to them, complete with copies of all the emails and proof that I actually had the funds needed to pay off the account, that they just would not take the money.
They basically tell me “sorry, it was due on the 9th and we didn’t get your payment until the 20th, so pay us the $1500 in interest you owe us”. Needless to say, I have refused. This is ridiculous, it’s not like I didn’t have the funds available to pay off the account, they just wouldn’t take them. Do you guys have any advice or any knowledge of some type of class action (or any action really) against these clowns? Thanks in advance for the help.”
Editor’s Note: Your account excludes lawsuits and limits you to mandatory binding arbitration. However, it has been HSBC’s policy not to accept another credit card as a payoff. The customer service rep should have known that and should have told you that. You must deposit the funds and then payoff the account. HSBC ran at least three scams on you - the payoff run-around scam, the late payment scam, and the no-interest scam. Let this serve as an example for others. You must pay off your HSBC account correctly, and about one month early.
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