Mods I wasn't sure where to put this feel free to move if needed. I know this is an HSBC issue but it is BB's Promo. Thanks
I bought an item on 07/26/2010 under an 18 month no interest promotional plan, the plan expires on 02/03/2012. I have been paying a little more than the minimum amount each month in a timely manner. I have had no issues until recently when I charged $96.89 on the card in November to take advantage of the double reward points. The December bill came and it included the new purchase. I paid the full amount of the new purchase plus the minimum due on the promo plan, I even included $25 extra just to make sure I didn’t mess up the promo plan. Now for the problem, the January bill showed all of the money was applied to the promo plan and just $0.96 applied to the new purchase which is billed at 24.24% if you don’t pay it off. I called HSBC and was directed to the statement on the bill under “Important information”, this explains how they apply your payments. The following is their words that apply to this situation and need to read and understood by anybody using the promotional payment plans:
“How payments are applied to your account: We apply the amount of your payment equal to the Minimum Payment Due at our discretion and generally to the Minimum Payment Due calculated on each credit plan. We apply any payment in excess of the Minimum Payment Due on your account to higher APR balances before lower APR balances. If you have a Same As Cash Credit Plan(s), we will automatically apply payments received during the final two complete billing cycles and up to the date of expiration first to the required Minimum Payment Due and next to the plan(s) that is expiring, in order of expiration; at other times we will treat your Same As Cash Credit Plan as having a 0% APR for purposes of determining payment application.”
I called HSBC and asked how one would pay off a regular purchase if it’s within two months of a promo expiring. I was told I had to pay off the entire promo balance and the regular purchase. There is no other way! I tried to reason that the promo was misrepresented if it didn’t last as long as stated because they were forcing me to pay it off early to avoid finance charges on regular purchases. That is not the way they interpret it as it was my choice to make a regular purchase within the two month period. I received the same answer from both Sam (the guy that answered first) and his supervisor Sonya (id# HRS8W8).
Fortunately for me the interest at was only a few dollars and I’m paying everything off early, as in Tuesday! I couldn’t imagine the surprise one would get if the regular purchase had been for a substantial amount.
Not sure who else to complain to as this all seems deceptive and a way to extort interest out of those of us that don’t carry regular balances. I wish I was aware of this earlier as I would have not charged the regular purchase, the reward points won’t offset the interest!
Cliff notes version: Beware! if it’s within two months of the promo ending they apply any extra money towards that promo and not your regular purchases.
Any help from the mods as to other places to complain about this would be appreciated. I’d like to get my few dollars back from HSBC.
