HSBC Direct Merchants Change in Term Notice: They' ve gone Crazy!

[plasticguy]

Current Apr is 7.74 V. As of Jan 2009 rate will be 14.99%. Why? They will be sending me a letter explaining why. After speaking to a Sup, she says the most likely reason is a "BUSINESS DECISION" and it is not just me. Account was open in 99, 12.5 limit. Closing it would really hurt. If I do not accept the terms, the account will be closed. I was told after the rate goes into effect, wait 3 months and call and request a lower rate

However, I carry a GM Card ( also issued by HSBC) that has 7.99 V and they have no plans to change the rate

[MidnightVoice]

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@plasticguy wrote:
Current Apr is 7.74 V. As of Jan 2009 rate will be 14.99%. .... Closing it would really hurt. 

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That is similar to a lot of reward cards rates.  Why not just use it and PIF?  That way you keep the TL and CL 

[plasticguy]

It's not a rewards card. Besides, Chase has 3 tiers now for the Freedom Card. I will wait for the letter. If it was directed towards me, the term notice would have ( or should) have mention something about information found in theCredit bureaus

[plasticguy]

And BTW, Current balance is $7.98

[score_building]

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@plasticguy wrote:
and they have no plans to change the rate

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terms can change on short notice regardless.

[Lucid08]

Plasticguy,

How were you made aware of the rate change? Was there one of those small, fine print leaflets included in your recent statement? I'm with HSBC also, and I'm curious as to how they are disseminating this information.

Which HSBC card is this btw? (edited to add: disregard, I see you mention the Chase Freedom above)

Message Edited by Lucid08 on 11-08-2008 02:33 PM

[plasticguy]

http://www.directmerchantsbank.com/


This card started out as Direct Merchants and HSBC bought them a year ago. You can't request a CLI or anything like that. The Card still says Direct Merchants Bank, but the CR says HSBC. This mailing was a separate folded piece of paper like a flyer, it was folded and tape and addressed to me


If you go to that website, and click sign in it takes you to the HSBC page

[plasticguy]

HSBC Bank Nevada, N.A. is the issuer of the Direct Merchants Bank® MasterCard®. HSBC Card Services and its affiliates are the providers of the various tools, resources and credit card services in this site. HSBC Bank Nevada, N.A. and HSBC Card Services shall not be responsible or liable for any products or services obtained by or through this site or any other pages of a HSBC Card Services site.
© HSBC Card Services Inc. 2006. All rights reserved.

[Uniqua]

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@plasticguy wrote:
And BTW, Current balance is $7.98

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No, they haven't gone crazy. Welcome to the world of CCs!

Clearly you have nothing to worry about if you continue to PIF. Why make a fuss over an APR you're more than likely not going to pay anyway, unless you decide to carry a balance? Closing the CC won't do you any good either.

BTW, 14.99% is not that bad compared to others with APRs in the mid to high 20s.

[Anonymous]

14.99% is a horrible APR when the current APR is 7.99%.