HSBC Watch News Release Forum Index
Forum Name: - Social Responsibility
Topic Title: HSBC Not Sending Out Refund When Account Closed
Wed Mar 16, 2005 12:37 pm
My wife and I paid off our HSBC-Best Buy Credit Card and overpaid by about $200+. I called HSBC asking them to close the account which they did. That was about 3 months ago. Today I called back asking if there was a problem with sending out our refund/credit because we hadn't recv'd it yet. I was told it is HSBC policy NOT to send out the funds in a closed account unless the account holder specifically calls to request it. Apparently, my calling to close the account doesn't count because I didn't specifically ask for them to send me our money. I guess they planned on keeping the money in a closed account forever.
Has anybody else experienced this and is it legal for them to do that?
Thanks!
RS
Wed Mar 16, 2005 1:17 pm
RS wrote:
My wife and I paid off our HSBC-Best Buy Credit Card and overpaid by about $200+. I called HSBC asking them to close the account which they did. That was about 3 months ago. Today I called back asking if there was a problem with sending out our refund/credit because we hadn't recv'd it yet. I was told it is HSBC policy NOT to send out the funds in a closed account unless the account holder specifically calls to request it. Apparently, my calling to close the account doesn't count because I didn't specifically ask for them to send me our money. I guess they planned on keeping the money in a closed account forever.
Has anybody else experienced this and is it legal for them to do that?
Thanks!
RS
Has anybody else experienced this and is it legal for them to do that?
Thanks!
RS
From the FDIC site available under regulators, this site:
"§ 165. Treatment of credit balances
Whenever a credit balance in excess of $1 is created in connection with a consumer credit transaction through (1) transmittal of funds to a creditor in excess of the total balance due on an account, (2) rebates of unearned finance charges or insurance premiums, or (3) amounts otherwise owed to or held for the benefit of an obligor, the creditor shall--
(A) credit the amount of the credit balance to the consumer's account;
(B) refund any part of the amount of the remaining credit balance, upon request of the consumer; and
(C) make a good faith effort to refund to the consumer by cash, check, or money order any part of the amount of the credit balance remaining in the account for more than six months, except that no further action is required in any case in which the consumer's current location is not known by the creditor and cannot be traced through the consumer's last known address or telephone number."
YES, they can do this according to one regulation. Your account should have reflected a credit balance. You must request the refund.
Otherwise, they have 6 months to make the refund.
From Regulation Z, Truth in Lending
"§ 226.11 Treatment of credit balances.
When a credit balance in excess of $1 is created on a credit account (through transmittal of funds to a creditor in excess of the total balance due on an account, through rebates of unearned finance charges or insurance premiums, or through amounts otherwise owed to or held for the benefit of a consumer), the creditor shall:
(a) Credit the amount of the credit balance to the consumer's account;
(b) Refund any part of the remaining credit balance within 7 business days from receipt of a written request from the consumer; and
(c) Make a good faith effort to refund to the consumer by cash, check, or money order, or credit to a deposit account of the consumer, any part of the credit balance remaining in the account for more than 6 months. No further action is required if the consumer's current location is not known to the creditor and cannot be traced through the consumer's last known address or telephone number."
In Regulation Z, the request for a refund, must be made in writing.
Even if you call, they may not honor the request, and they have 6 months to hold the money. "In good faith", I suspect they don't try very hard to find you to deliver the refund.
Write and request the refund of the credit balance. Let us know how it pans out for you.
Fri Mar 18, 2005 10:18 pm
do you have a phone # for HSBC??
Thanks,
JL
Fri Mar 18, 2005 11:10 pm
Anonymous wrote:
do you have a phone # for HSBC??
Thanks,
JL
Thanks,
JL
Please click on "Questions / FAQ" in the main menu or use the site search to find every phone number listed n this website. Thanks.
We monitor customer trends for possible violations of Regulation Z and other possible illegal actions.