A few months ago Beneficial provided me with a $5,000-something signature loan which I used to consolidate a number of debts. At that time, they said I could also apply for a Household Bank (HSBC) gold MasterCard, which I did since I didn't yet have a gold one in my collection. The "fine print" on the credit card application (which actually was in a good size easy-to-read font) stated ZERO percent APR for the first sixth months on purchases AND balance transfers. It also stated a "cash advance fee for balance transfers" of 2.5% ($5.00 minimum).
When my card arrived several weeks later, HSBC enclosed a lot of marketing materials hyping transfer balances at 0% APR (and I thought it also said there would be no fees associated with balance transfers for the first six months).in fact, when I called HSBC to activate my credit card, they again hyped the balance transfer deal at 0% APR and I told them I needed time to figure out what my plans would be and that I would do it online.
On May 18, I went to my account page on the HSBC web site and clicked on "balance transfer" and filled out the appropriate information. There was a disclaimer that if my APR and other terms "are not listed below, " the good folks at HSBC would provide those to me BEFORE I approve the balance transfer. Lo and behold, five minutes after I submitted the form online, I received an automated e-mail from HSBC which stated, "As we process this request, we will send you the Terms and Conditions associated with doing the Balance Transfer. Once you reply with your acceptance of the Terms and Conditions, we'll complete the processing of your request and update you via email."
Less than five minutes after that e-mail, they sent me another, which stated in part: "You recently requested a balance transfer to your Household Bank credit card. For more details, please read the following Important Information about the APR for this balance transfer. If you'd like to take advantage of this offer, please respond directly to this email."
Needless to stay, no specific terms for the balance transfer were provided in this e-mail. They simply wrote, "Each online Balance Transfer is for use in obtaining credit up to your available credit limit under the terms previously disclosed in your Cardmember Agreement and Disclosure Statement, as amended from time to time. The Cash Advance Fee for credit card checks will apply to the amount transferred. The online balance transfer will be a charge against your credit card Account. Periodic Finance Charges will apply immediately upon use of these checks. The Cash Advance Fee has been previously disclosed in your Cardmember Agreement and Disclosure Statement, as amended from time to time."
I responded to the e-mail with an "agree" as they instructed. HSBC promptly processed my transfer and sent me a brief computerized letter in the US mail confirming the balance transfer had been processed. (Later I would learn that on the back of that letter their is verbiage about a 5% ($10.00 minimum) balance transfer fee.)
About a week after the balance transfer, I received a "letter" from Colleen M. Williams, Senior Marketing Manager, Household Bank, reminding me to activate my card and informing me that during my 6-month introductory period I could initiate a balance transfer at 0% APR without incurring a cash advance or balance transfer fees. It specifically stated that those fees "will be waived." The fine print (this time it really was hard-to-read fine print) stated that such fees would be waived no matter how the balance transfer is initiated (telephone, internet, access check, etc.). They also enclosed three cash advance checks for me to use.
When I subsequently noticed on my pesonalized HSBC web page that they had charged me a $40.00 fee for an $800.00 balance transfer, I immediately contacted them on the phone and spent a lot of time with people in India who didn't know anything and couldn't help, but a supervisor in America finally got on the line and advised me to fax him the letter from Ms. Williams so that he could review it. He said nothing could be rectified over the telephone and was insistent that the letter be faxed; that he had no information he could access regarding the terms of that letter via his computer.
Sorry to state the obvious, but weeks went by after my fax with no response from HSBC (in phone, writing, or otherwise), so I telephoned them up and asked what was going on. I was told (again by someone in India), "It is in review, blah blah blah."
On July 5, out of total frustration, I mailed a letter to HSBC Card Services in Salinas via Priority Mail with Delivery Confirmation Receipt. I enclosed my billing statement and a copy of the letter from Ms. Williams. I demanded that the $40.00 fee be reversed from my balance. I also advised them that if they did not immediately resolve the matter, I was prepared to file complaints against HSBC with the Better Business Bureau and the U.S. Attorney General. I also told them I knew of a class action attorney in San Francisco who I could contact.
Well, I guess they weren't impressed with my letter.in a computerized letter dated July 14, the customer service department wrote, in part, "... You agree to pay a 5% or $10.00 minimum transaction fee for cash transactions." The point they seem to keep missing is that at least one of my cardmember agreements states 2.5% for balance transfers, not 5%. If I can hold them to the letter from marketing, there should be NO balance transfer fee involved at all.
At the time I wrote to HSBC I did not realize that they are also charging me an APR of 22.99% under "Access Checks" on my billing statement for the $800.00 balance transfer. It doesn't take a rocket scientist to figure out that they should not be charging me any Annual Percentage Rate based on the terms in my application AND also contained in the letter from marketing. Furthermore, it is clear that the most they should charge me for the balance transfer fee is 2.5% pursuant to my application terms. I am inclined to think that because of the letter from marketing (even though it was after I initiated the balance transfer in question), I might be able to hold them to the no balance transfer fee.
The July 14 letter from HSBC said I could call (800) 477-6000 and refer to "reference number: 8033-12JUL05." I called them on July 24 and of course talked to someone in India. After 15 cumulative minutes of holding, the guy said he had no record of that reference number and when I told him my scenario, he transfered me to a supervisor.
I then spoke with Julie (employee #BE5) and went through the entire history with her. She said I should have received the APR and terms applicable to the online (Internet) $800.00 balance transfer via e-mail. I explained to her that those e-mails were generic and did not contain any specific reference to terms or fees. She said the only thing she could confirm is that the terms in my application did state 0% APR for balance transfers and something about "those terms must not have been available to you for the online balance transfer offer." She said she could not confirm anything about balance transfer fees, the marketing letter I received, and that there was no manager available who could access that information. She said I would have to call back on Monday. She could or would not answer any of my questions about why a customer would have THREE separate cardmember agreements.
In hopes of getting immediate resolution to this matter, I advised Julie that I was considering litigation against HSBC and was prepared to contact each and every appropriate consumer agency about this matter. She said I still have to call back on Monday and refused to relay a message to the corporate office or customer service department on my behalf. She did, however, agree to document our conversation in the computer.
So, apparently there are three cardmember agreements for me and HSBC uses whichever one is the most profitable for them. I am confident and convinced beyond all reason that this is not an isolated incident and thousands upon thousands of unsuspecting people are are being victimized by the unorthodox and illegal practices of this company.
I have my original application, marketing letter, July 14 letter, access checks, billing statement, and saved web pages form the HSBC web site regarding this matter for documentation which I plan to submit to the appropriate government agencies and any attorney who might help.
Crusader
Palm Springs, California
U.S.A.
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