HSBC credit line slashed for no reason!!!

[Anonymous]

Used a backdoor number, they will not be reconsidering restoring of limits. I have 2 family members 1 at U.S. Bank and another for Sears Discover. They have both been advised at different times in their lengthy careers when they were given "no approval" orders. No matter what your FICO score if the funds aren't their to extend, their only option is to lower credit lines, basic math 101. 

Message Edited by SupportOur2ndAmendment on 02-20-2009 02:30 PM

[emptypockets]

Way off topic, but 2nd amendment just really noticed your user name,  that's cool!!!

[Anonymous]

This appears to be an across-the-board action by HSBC - many customers with many different spending/payment profiles all getting serious CLDs. There are a ton of similar reports on CB as well. There is no pattern as far as I can tell.

HSBC has always been on a hair-trigger for closing accounts due to inactivity - they always did it much faster than any other bank or store. Now it appears they have extended their paranoid approach to credit limits also. Best thing to do is transfer or pay any balance as fast as you are able, sock drawer the card, and charge a cup of coffee on it every other month ...

[Anonymous]

Those of you that posted CLDs - did you just notice today (2/19/09)?  I did log in to both of my accounts and thus far no adverse action (thank goodness).  I have a DMB Discover and HSBC Plat MC.

[Anonymous]

---

@Anonymous wrote:

Those of you that posted CLDs - did you just notice today (2/19/09)?  I did log in to both of my accounts and thus far no adverse action (thank goodness).  I have a DMB Discover and HSBC Plat MC.

---

It either doesn't seem to be an action that is hitting EVERYONE or its taking time to propogate and make its way to the rest of us. I have a DMB with 4500 and HSBC with 4500 and Household with 2k and none of them have been hit yet but as I said I am hoping it stays that way but it might just be a matter of time before it gets to us too, if that happens, I am going to stop using credit and go cash, this is just lame that we are at the mercy of such arbitrary crap from the companies who need us but treat us like crap.

[Anonymous]

Me too.  3400 to 1950.  They also ratejacked me to 14.99.

No lates, 720 Fico.

I do have a checking and savings with them.

Also have wamu card.

[Anonymous]

HSBC not only cut the limits here in the US they cut the limits world wide. Their official story was they cut limits to where they know people can pay a given statement in full if the bank calls them for it.

You should all feel lucky actually because I saw on the BBC news that in the UK they (HSBC) actually took money out of peoples bank accounts to pay their credit cards with and then cut their limits. Thats down right nasty business if you ask me. 

[Anonymous]

---

You should all feel lucky actually because I saw on the BBC news that in the UK they (HSBC) actually took money out of peoples bank accounts to pay their credit cards with and then cut their limits. Thats down right nasty business if you ask me. 

---

That is some foul ish right there!

Since my thread was locked..  I am reposting my comment and question here.

I spoke with a CSR at HSBC who essentially said that all of the HSBC CLDs happened on 2/18 and implied that they are done cutting.   She did not flat out say that there will be no more cuts for now.  I am hoping this is the case since, so far, my MC has been spared, but I really had not availabe CL to cut.. only $36.00 was there.  When I asked her if my paying off the Disc. and making a large payment on the MC will now give HSBC incentive to cut more.. she just kept saying .. all the credit line declines happened on 2/18 and there is no need for me to worry about anotehr Disc cut.. and my M/C should be fine. 

Can anyone else say whether they were CLD before or after (i know is still so soon after) 2/18 and if they think that there was just this one day set aside for global CLDs?

Well some very samll consolation ... they at least lowered my rates on both cards... Disc. 13.9 from 14.9 on purchases... and 19.9 from 22.9 on cash advances... MC did not lower 14.9 on purchases.. but lowered cash advances from 22.9 to 20.9. 

[Anonymous]

I knew I could come here to get to scoop on the HSBC nastiness!! They slashed my CL too, and the customer no-service guy I talked to wouldn't even tell me as much as others here were told when they called. I definitely will sock-drawer this piece of junk card now.

Hauling, here's my info:

-- CL before and after 7000/440
-- what is the name of the card (HSBC Platinum, Orchard something, Best Buy Reward Zone MC, etc) HSBC Direct Merchants Bank Titanium MC

-- have you carried high util on this card within the last 6 months nope
-- have you carried high util overall within the last 6 months yes a little high - around 35%
-- do you live in a high foreclosure area yes, FL - but not south FL

-- do you have a mortgage with an iffy lender, like Countrywide yes - countrywide - new mortgage 11/07 - and just as a side note - in my experience they are one of the best lenders I've dealt with. Very responsive and the mortgage process was a piece of cake - and I'm not a subprime customer.

-- do you have a WaMu card (or former WaMu card) or cards from other banks that have been having adventures yes I have a WaMu card
-- any other factors that make you wonder - Not really. this is my first CLD since the economy exploded. My credit scores are around 700 (either a few points above or below), I don't carry a balance on this card usually and had a $132 balance when they CLD'd me, I have an excellent payment history and account history of 10 years. So this was completely out of the blue.

---

[Anonymous]

Last Year, I had AMEX lower my limit right down to $100 of my balance, A quite large one due to serious emergency healthwise, I might add. I called them and after speaking with a CSR, they understood my great payment history, low additional charges, and lenghty history with them, over 10 years. My CSR understood that even the finance charge would throw me over my limit, adding additional overlimit charges. He was able to lower my rate from 15.99 to 11.99%.  Out of the blue, in the next month, my rate went down to 9.99% and then the next month was 8.99%, all without any additional phone calls. I have had great experiences with AMEX, and I feel so fortunate not to have this HSBC card...I would have serious problems...

Getting better though...I recieved unexpected money in this last paycheck and paid off 2 smaller cards. Now I can focus on the other 3...whooohooo!!!