why I am considering cancelling my credit card

[smileyeagle1021]

Yet again I get to dance with HSBC... I made a payment on August 27th to pay the balance on my credit card, on August 28th it showed up as having been withdrawn from my credit union checking account, then on August 29th I was informed that a hold had been placed on my payment because it was a large enough payment that they had to wait for my bank to actually release funds rather than just withdraw them... OK, I didn't realize there was a difference, but it sounds fair. So fast forward to today, I notice the hold is still on my credit card... so I call my credit union to ask why it was taking so long to release my funds, they informed me that the funds had already been released... I contact HSBC and ask when they were going to release the hold... their response "once your bank releases the funds"

This is the second time HSBC has pulled this stunt of keeping holds on my card for upwards of a week after my bank releases funds... has anyone else had this problem or has my account number just had a hex put on it?

[MrSunshineState]

Speaking as a banker, HSBC is very corrupt like that. The longer they "hold" the payment, the more daily interest they can charge you. Sure it may only be a few cents when it's all said and done, but multiply that by all their card holders.

[Irving Patrick Freleigh]

So does this mean they're holding the payment so they can consider it late and charge interest and penalties too?

If so, how is that even legal?

[prb]

This is why for ANY credit card, I make payments either CASH in the branch, or a cheque in the mail.

[smileyeagle1021]

So does this mean they're holding the payment so they can consider it late and charge interest and penalties too?

If so, how is that even legal?

no, they aren't charging interest or fees, but I carry no cash and do almost everything on that one card, and I had book purchases on there for school, so all told we're talking about a $700 payment with the money now being out of my bank account so I can't use that money there, and not yet credited to my credit card so I can't spend there... which leaves me only my emergency card for expenses...

[wagegoth]

See if you can get a credit card through your personal bank. If you can, pay off the HSBC, or transfer the balance if you can. If HSBC doesn't charge an annual fee or monthly fee, in other words, if it won't cost you anything, leave the account open. It looks good on your credit report. But if they charge an annual fee, or even fees for having a zero balance, consider closing it.

[BethB]

I paid off a CC and there was a hold(HSBC, I believe). It was done about 5-7 days before the payment was due and it was on hold for past that and I ended up with a late fee. I was ever so SLIGHTLY . But I cancelled that card. They made me mad

[Javarod]

HSBC is sleazy, i just had a spat with them over a charge that they duplicated. Not only did it make my bank account over draft (the card is a sort of debit card working via ACH), but they did this repeatedly, and refused to accept the blame. Last time i'm dealing with them.

[MiddleofNowhere]

HSBC is very corrupt...

I had a small charge account with them, noticed that all of a sudden, despite me having paid on time for years, my interest rate jacked up and I started getting all these strange charges. Went round and round with them about the charges, finally told them to take their card and stick it where the sun doesn't shine and closed my account and paid them off.

I will never have an account with them again.

[ralerin]

...I'm currently thanking God I didn't get an account with HSBC and went to local credit union instead.

[Aethian]

Why not just get a debit card with a MC or Visa logo and just use that? Get rid of the credit cards completely.

[Geek King]

Why not just get a debit card with a MC or Visa logo and just use that? Get rid of the credit cards completely.

Debit cards, even with logo, do not carry the same protections as a credit card. Most issuers will voluntarily give the same protection on debit cards as what is required by law for credit cards, but can cancel that policy at any time they feel like it. In addition, you don't have to worry about someone putting a lock on unusually large amount in your account and causing payments to be declined. Also, if you have an emergancy, you don't have to worry about not having enough cash in your account to cover it.

Just find a reputable credit card provider. Not all of them play games like what I've seen reported here.

[smileyeagle1021]

Why not just get a debit card with a MC or Visa logo and just use that? Get rid of the credit cards completely.

and what Greek King didn't mention is that your credit rating is partially based on your actual credit used compared to available credit... having credit cards raises your available credit and thus raises your credit score, making it easier to among other things, get insurance, jobs (in the financial field), and loans (which with tuition costs keep going up I'm going to have to resort to pretty soon).

[Golden Phoenix]

After ten years and over £5000 in charges i'm giving "The Worlds Local Bank" the boot.

They have screwed me over in every way they can, including, most recently, cancelling (not freezing, flat out cancalling) my debit card because my account showed a "Possibly fraudulent ebay transaction".

What was this supect transaction? I bought a set of custom fit vampire fangs for £17.

Wtf?

I'm moving to Lloyds. They're more convenient from here anyway.

[Aethian]

and what Greek King didn't mention is that your credit rating is partially based on your actual credit used compared to available credit... having credit cards raises your available credit and thus raises your credit score, making it easier to among other things, get insurance, jobs (in the financial field), and loans (which with tuition costs keep going up I'm going to have to resort to pretty soon).

There are bank accounts that report to the three buerus as well. And under writing still exists.

I dunno..I'm not worshiping at the altar of the FICO anymore. No more loans in my immediate future. And when I go for a mortgage I'm going with Churchill Mortgage who has someone there to look at the people themself and not the FICO number.

In four months I won't have a car loan anymore and I will not get another one. Already have an account set up to put money in to save up for a car I will pay for in cash.

Also if you get a good bank, your covered for theft if you report it early enough.