HSBC Watch News Release Forum Index
Forum Name: - CompUSA
Topic Title: CompUSA and HSBC never again
Thu Apr 28, 2005 2:54 pm
Bought a computer from CompUSA March 11, 2005 by applying for credit through them. I was told at the time of purchase that there was a promotional deal of 21 mos no interest and no payment finance with the computer I was purchasing. On April 28, 2005 I received a phone message from HSBC retail (I had no clue who they are or what they wanted) asking me to call their 800 number. I eventually find out that my account was past due. I never received any statements from them let alone know who to pay... I talked to one of their representative who stated that according to their records a statement was mailed out on March 18 and couldn't really explain why I did not receive it. I was then advised that in order to have the $35 late fee waived, I would have to do an over the phone check payment for the past due amount. I however would have to pay a $15 fee to make the payment over the phone!! Thats half of the late fee! I will never do business with HSBC or CompUSA ever again!
Fri Apr 29, 2005 2:22 pm
$35 in late fees and default interest rate.
I wrote about nearly an identical scenario in the following link.
http://www.householdwatch.com/thor/viewtopic.php?t=357
See the dates? The first billing cycle started within one week of the credit application and purchase. Supposedly the statement was mailed on the 18th of March, one week to the day of the purchase. Prior to the 11th of March, the account did not exist.
I seriously doubt if the account information existed on the 18th of March, let alone a statement could be produced and mailed. Yet this person was charged late fees based on non payment of a fictional first statement.
The only way HSBC or any credit servicer will make money on an interest free promotion is if the customer defaults under any of the terms. So guess what? HSBC has figured out a nearly fool proof way to get the consumers to default.
The consumer in this case definitely needs to file a "Billing error inquiry" with HSBC, a complaint to their state attorney generals office, and with the OCC.
We monitor customer trends for possible violations of Regulation Z and other possible illegal actions.