CFPB Complaint - HSBC Bank stalling

[AlphaRomeo]

Hi everyone,

 

I am hoping to get some advice from the community here. I have an open CFPB complaint against HSBC.

 

To give a gist, I have one of their credit cards with a hefty annual fee. After nearly a year of using the card, I did not enjoy its rewards and continuing with the card does not make any sense. I requested the bank for a product change and downgrade my card, but HSBC told me that this particular card is not eligible for a product change, and that I must close the card itself and simply apply for a new one. Since closing my card would affect my credit history, I requested HSBC to reconsider my request, but the bank still refused to downgrade the card saying that it was part of the TnC. When I disputed that such a condition for no-product-change was never mentioned in the TnC that I signed, the bank refused to entertain me any further.

 

Following the above situation, I filed a complaint to CFPB. Interestingly, the next day I received a mail in my 'Promotions' folder from HSBC stating that an Arbitration clause is being added to my Terms & Conditions. I promptly went ahead and mailed them a rejection notice. Following this, HSBC has now responded to my CFPB complaint saying that, it needs another 60 days to look into my complaint.

 

At this point, it looks to me that HSBC is simply trying to stall me, so that next month, I get charged the annual fee again (that's when the card completes 1 year). This essentially means that they are free to give whatever resolution they want. And if I close the card before that, the whole point of the CFPB complaint is defeated.

 

Is it checkmate for me, or are there still any options left? 

[MarvBear]

Welcome to CreditBoards.   Be patient till someone with fee waiving and HSBC can help you.

[hegemony]

welcome to CB!

 

Honestly I don't see how this is CFPB-complaint worthy. Issuers vary in their policies to product change. It would be different if your terms said you COULD product change at any time and then hsbc denied your request. what exactly is the wording in the terms?

[AlphaRomeo]

35 minutes ago, hegemony said:

welcome to CB!

 

Honestly I don't see how this is CFPB-complaint worthy. Issuers vary in their policies to product change. It would be different if your terms said you COULD product change at any time and then hsbc denied your request. what exactly is the wording in the terms?

Thanks hegemony. Your point about it being dependent on the issuer is agreeable. But as a consumer/customer, I am hoping that I be given a choice to switch to a card without annual charges. There is no clause in the terms that talks about product change.

[IndyPoolPlayer]

1 hour ago, hegemony said:

Honestly I don't see how this is CFPB-complaint worthy. Issuers vary in their policies to product change. It would be different if your terms said you COULD product change at any time and then hsbc denied your request. what exactly is the wording in the terms?

Is it even worth it to even bother filing any CFPB complaints?

[hegemony]

20 minutes ago, IndyPoolPlayer said:

Is it even worth it to even bother filing any CFPB complaints?

perhaps not now that it has had its balls cut off.

[cv91915]

10 hours ago, AlphaRomeo said:

Thanks hegemony. Your point about it being dependent on the issuer is agreeable. But as a consumer/customer, I am hoping that I be given a choice to switch to a card without annual charges. There is no clause in the terms that talks about product change.

Your complaint is frivolous.

 

Even if the account agreement permitted product changes, the terms would have qualifying language that left such PCs to the discretion of the issuer, subject to credit approval or other requirements, etc.

 

Filing frivolous CFPB complaints to assert rights you don't have is a waste of finite CFPB resources that should be used to help people who have actually been harmed financially.

[Glacier]

If there is nothing in your T&C's saying a product change is available, then it more than likely would be interpreted that a product change was NOT available. 

[pendleton94]

which card do you have?

 

which card are you trying to PC to?

[AlphaRomeo]

1 hour ago, pendleton94 said:

which card do you have?

 

which card are you trying to PC to?

I have HSBC Premier World Elite Mastercard, and had a Premier Checking Account that had enabled me to get this card back then. Last month, I got my checking account PC to an HSBC Advance Checking, so wanted to PC my credit card to an Advance Mastercard as well.

 

I *agree* with everyone's take here. But just from a consumer standpoint, it is counter-intuitive that my Premier checking account was eligible for a PC to Advance Checking, but a Credit card (approved because I had the Premier account in the first place) is not allowed for a PC to an equivalent Advance Mastercard.

[hdporter]

35 minutes ago, AlphaRomeo said:

I have HSBC Premier World Elite Mastercard, and had a Premier Checking Account that had enabled me to get this card back then. Last month, I got my checking account PC to an HSBC Advance Checking, so wanted to PC my credit card to an Advance Mastercard as well.

 

I *agree* with everyone's take here. But just from a consumer standpoint, it is counter-intuitive that my Premier checking account was eligible for a PC to Advance Checking, but a Credit card (approved because I had the Premier account in the first place) is not allowed for a PC to an equivalent Advance Mastercard.

Likely why most here don't bank with HSBC ... maybe time to cut bait and run???

 

In any case, you can't presume you have account holder rights (e.g. to change card product) simply because the agreement didn't stipulate that you didn't have them.  Cardmembership isn't the same as citizenship; you don't have "certain inalienable rights" (well, there is the matter of FCRA ... ).   Instead, they are granted and accepted by agreement.

[cv91915]

15 hours ago, AlphaRomeo said:

I have HSBC Premier World Elite Mastercard, and had a Premier Checking Account that had enabled me to get this card back then. Last month, I got my checking account PC to an HSBC Advance Checking, so wanted to PC my credit card to an Advance Mastercard as well.

 

I *agree* with everyone's take here. But just from a consumer standpoint, it is counter-intuitive that my Premier checking account was eligible for a PC to Advance Checking, but a Credit card (approved because I had the Premier account in the first place) is not allowed for a PC to an equivalent Advance Mastercard.

Bank accounts and credit card accounts are subject to completely different laws and regulations.

 

Even if that wasn't true, both are governed by a separate account agreement that you accepted when you opened each respective account.

 

Would you file a CFPB complaint if they refused to PC a 30-year fixed-rate mortgage to a 5/1 ARM?