topic Re: Capital One's Takeover of HSBC in Credit Cards

Capital One's Takeover of HSBC

Tommy5746 — Wed, 23 May 2012 15:52:15 GMT

So, now that capital one has taken over HSBC... what do you guys think will happen to the people who already have exisiting Capital one cards? Think they'll combine the credit lines into one? Close out cards?

Re: Capital One's Takeover of HSBC

namvet — Wed, 23 May 2012 16:10:23 GMT

My guess is that the cards will continue to report as seperate accounts. I don't think the cards will be combined. HSBC will change over to Cap One on your reports.

Re: Capital One's Takeover of HSBC

Whereis750 — Wed, 23 May 2012 16:16:11 GMT

My HSBC cards are now reporting as CapOne on my CRs. My accounts have not been combined as of today nor have they issued new cards with the CapOne logo to replace the HSBC cards.

Re: Capital One's Takeover of HSBC

Wolf3 — Wed, 23 May 2012 17:01:56 GMT

Tommy5746 wrote:
So, now that capital one has taken over HSBC... what do you guys think will happen to the people who already have exisiting Capital one cards? Think they'll combine the credit lines into one? Close out cards?

My guess is most accounts will continue as seperate accounts and eventually be converted to a existing Capital One card. Some might be combined. Some would be closed.

Re: Capital One's Takeover of HSBC

modernsurrender — Wed, 23 May 2012 20:51:40 GMT

I got two letters earlier this month (one for my HSBC Plat and one for my Orchard Secured) and IIRC they said something along the lines of, "There is currently no change in customer service numbers, no change in log in sites/procedure, no new cards sent out, no change in fees/apr and no merging," paraphrased of course.

Re: Capital One's Takeover of HSBC

Wolf3 — Wed, 23 May 2012 20:58:04 GMT

modernsurrender wrote:
I got two letters earlier this month (one for my HSBC Plat and one for my Orchard Secured) and IIRC they said something along the lines of, "There is currently no change in customer service numbers, no change in log in sites/procedure, no new cards sent out, no change in fees/apr and no merging," paraphrased of course.

I got the letter, but that is for now. We are speculating on what will happen later on.

Re: Capital One's Takeover of HSBC

2NE1 — Wed, 23 May 2012 21:50:58 GMT

what I'd like to find out is whether or not CapOne is going to let new CC customers that already have one card be allowed to ADD another card and not count their HSBC/Orchard CC transfer as part of their "two-card-limit" per customer rule! >_>

Re: Capital One's Takeover of HSBC

Wolf3 — Thu, 24 May 2012 02:32:01 GMT

2NE1 wrote:
what I'd like to find out is whether or not CapOne is going to let new CC customers that already have one card be allowed to ADD another card and not count their HSBC/Orchard CC transfer as part of their "two-card-limit" per customer rule! >_>

I have 2 cards now and am wondering as well. I don't have a good guess on that one.

Re: Capital One's Takeover of HSBC

CS800 — Thu, 24 May 2012 02:36:12 GMT

I have noticed that on CK, my BBRZMC is already listed as a Cap One.

Problem is that now I have a regular CapOne with a $1100 CL and a $39 AF

And

A BBRZMC with a CL of $800 and an AF of $59

Re: Capital One's Takeover of HSBC

Repo-ed — Thu, 24 May 2012 14:07:56 GMT

I have two Cap1 TLs as of this morning.

Re: Capital One's Takeover of HSBC

corymcd88 — Thu, 24 May 2012 15:11:04 GMT

Wolf3 wrote:
2NE1 wrote:
what I'd like to find out is whether or not CapOne is going to let new CC customers that already have one card be allowed to ADD another card and not count their HSBC/Orchard CC transfer as part of their "two-card-limit" per customer rule! >_>
I have 2 cards now and am wondering as well. I don't have a good guess on that one.

I was told that you can keep the card after they go to cap one.

Re: Capital One's Takeover of HSBC

2NE1 — Thu, 24 May 2012 17:43:25 GMT

yes, I fully understand that... BUT what about being able to apply for another CapOne CC now, i.e. Cash Rewards? since it'll already show TWO TLs on my CR.

Re: Capital One's Takeover of HSBC

cashnocredit — Thu, 24 May 2012 18:05:51 GMT

Cap One isn't taking over HSBC's premium cards. HSBC's PW MC is one of the better reward cards out there. It looks very attractive and I would be jumping on it in a minute if they had any banks in my region. All my current cards, outside of my Amex, are with banks that have local branches.

Cap One's Venture is quite good as well. I just got a preapp for their Venture card and I'm impressed with the rather professional look of Cap One's solicitation. But since Amex cut the forex fees to zero on their plat. it's not as compelling. I really love Cap One's 0 forex fee across their entire line and almost jumped on them when I was back in my rebuilding phase.

Re: Capital One's Takeover of HSBC

corymcd88 — Thu, 24 May 2012 18:27:29 GMT

2NE1 wrote:
yes, I fully understand that... BUT what about being able to apply for another CapOne CC now, i.e. Cash Rewards? since it'll already show TWO TLs on my CR.

I was told no. You will have to wait after you close the account.

Re: Capital One's Takeover of HSBC

2NE1 — Thu, 24 May 2012 20:29:49 GMT

corymcd88 wrote:

I was told no. You will have to wait after you close the account.

Wow, really? that is so unfair!!! :smileymad:

Re: Capital One's Takeover of HSBC

Naked — Thu, 24 May 2012 20:36:37 GMT

I have noticed slow reporting on my BBRZMC since CP1 has bought them. I also have CP1s Cash Rewards card. They still have not updated my payment for this month and its usually spot on when they report.

Re: Capital One's Takeover of HSBC

bbrannan — Fri, 25 May 2012 03:02:24 GMT

I also have a Capital One Cash Rewards that has not been reflected on my report. I have another Capital One Secured and an Orchard (now Capital One) that are both reporting as Capital One TL now. Do I need to close one of those builder cards to get the Cash Rewards to start reporting? The statement was dated 3 days ago but still has not shown up on my report...

Re: Capital One's Takeover of HSBC

Wolf3 — Fri, 25 May 2012 03:16:16 GMT

bbrannan wrote:
I also have a Capital One Cash Rewards that has not been reflected on my report. I have another Capital One Secured and an Orchard (now Capital One) that are both reporting as Capital One TL now. Do I need to close one of those builder cards to get the Cash Rewards to start reporting? The statement was dated 3 days ago but still has not shown up on my report...

Capital One can be slow reporting so wait a while and see. I can't image it has anything to do with having 3 accounts.

Are you planning to keep the secured card open? I closed my secured card a few months after I got their cash rewards card.

Re: Capital One's Takeover of HSBC

bbrannan — Fri, 25 May 2012 03:31:55 GMT

I really only keep it for the credit line...it helps my credit util a little bit. And seeing as I have already paid the initial annual fee associated with the card, I might as well keep it for the first year. I will NOT carry a balance on it at all!! The CL is way too low. Same goes for my Orchard card (now Capital One as well). They have a nice little corner in my sock drawer! After the year is up, they are history.

Re: Capital One's Takeover of HSBC

bernhardtra — Wed, 20 Jun 2012 14:45:07 GMT

Tommy5746 wrote:
So, now that capital one has taken over HSBC... what do you guys think will happen to the people who already have exisiting Capital one cards? Think they'll combine the credit lines into one? Close out cards?

I think that will depend on what kind of customer you are. If you are subprime I am sure they will keep your accounts open which have an AF. If your card with HSBC has an annual fee, then I think they will also keep that card open. With their prime cards, I imagine they will combine or merge accounts to some degree, so they will have more money to lend to subprime borrowers. For now and up to 2 years, nothing will change. Remember CapOne basically only has two tiers of credit, prime and subprime. They make lots of money off subprime! I would be worried if I were a near prime Household Bank customer.

For now nothing is going to change until they merge the accounts into their system. They have not spoken about how this will happen. A smart planner would choose to merge the prime accounts first, based on CapOnes strategic goals. In this situation the person would merge the accounts into current CapOne card holders accounts. Maybe not at full credit limit level, but at a mid point between the two accounts. For example; CapOne account CL $5000 and HSBC $10,000, new account $7500 or $1000 more than the combined balances. Even if they offered this to customers first, then it would still be a benefit to them. Their strategy is to get operating income from the fees of subprime card holders, so the Prime cardholders can be offered much nicer benefits. In this situation it actually makes the most sense to start from the top down and free up lending power for their subprime market and increase fee income even more. This will allow them to offer or keep their high tier customers happy.

Those that pay off their bills every month would like this as they would then only have 1 less bill to pay and a higher limit. Those that carry a balance would also like this as it will allow them a cushion to their limit of their combined balances and regular reviews for increases. (They give their prime cardholders CLIs more routinely.) But then it is CapOne, so I would be worried if you have a prime account with HSBC and a subprime account with them. A Household Bank Card may be what is referred to as near prime and what will CapOne do with that type of account. They do say for now they don't have any plans to change the terms on the account and they have an agreement with HSBC to service the accounts for up to 2 years. This means they will need some strategy for training either new people or HSBC to use the CapOne software. (I think HSBC has the same style for treating customer as CapOne, so I don't think there will be any issue of training them there unless it is to train them down. (Ha!) So the best strategy is to start with the best and then do the worst.

HSBC - Prime

Household - Near Prime and Subprime (This one will be the hardest to match to CapOnes two tier system. So it would be best to save that for last. It will more easily create a better decision later. In two years your credit score might be high enough to be classified as a Prime borrower or Subprime, depending on how you maintain the account.)

Orchard Bank - Subprime.

For a while everything will remain the same. When your calls start getting handled by the Phillipines instead of India, then become worried.