HSBC credit line slashed for no reason!!!

[score_building]

utah2009 wrote:
Chester brings up an interesting point.  "I appear to be a valued customer because..I bring in a lot of interest revenue."  There is another revenue source that doesn't depend on me paying interest - that would be the transaction fees.  My limits have not been cut, but I do PIF every month (I make more than one payment and make sure my statement balance is always about 5%).  I do create revenue for the cards through transaction fees - I use them heavily.  But I do not pay interest.  What say you (y'all)?

sure - both are revenue generators.  however, the interest earned on your balances - while it varies depending on amount owed and the rate, etc.- tends to be the sweet spot.   by comparison, transaction fees tend to be a much smaller piece of the pie.  don't count on ccc getting uber wealthy off transaction fees alone.

they still benefit heavily from the interest income from card holders who they may detect as having "a taste for credit".  these range from low to high income acct. holders who have shown over time that they are willing to carry balances month after month and year after year.  and pay dearly for the privilege of doing so.  collecting regular interest payments on large balances remains a preposterously lucrative activity for ccc's in any climate.

now it seems they want to be much more selective and keep only the least risky revolvers (and pif customers)with the specter of default looming- they've learned to become more careful, or so it seems.

[Anonymous]

The pattern I'm seeing from my experience and from some contributors is that CL's are not being cut IF you use your card heavily even if you don't pay interest - seems to indicate that the transaction fees are a factor in motivating the decisions.  What experiences have you forum members had?

[score_building]

while ccc's benefit from the additional income, it seems v. unlikely that they would be particularly enamored of a card holder simply due to their transaction fee generation, which is comparatively a more marginal income stream at most ccc's.

perhaps the more important reasons why a heavy usage pif customer isn't cut (although some are) is because they are seen as not only being able to handle the CL they've been issued but actually having use for it.

[Anonymous]

OK, I am still new and if I am on the wrong thread then PLEASE redirect me.

It appears to me that those of us with a decent score, 700 and above, and pay on time etc are getting the bad end--------BUT you would be wise to constantly look at your FICO score and your CC balances, APR's etc....I am finding, that like many of you have found, that they are not taking electronic payments and posting them in a timely manner-----IN FACT they are HOLDING some in DEBIT column!  I called HSBC and asked them about this last month and saw it happen again THIS month.  Their response was that they had to make sure that the "funds: were available----well, jee wiz-----it was an e transfer from the BANK---you would think that IF the money weren't there that  the bank would NOT pay or at the very least pay and then CHARGE ME!  It is taking more than 8 plus days to POST to my account.  I thought it might be the amount I was paying so I made multiple payments in differrent increments----they took the first one which was the average payment and are STILL holing that in MY debit column----go figure.  Thank GOD ALMIGHTY that I don't pay throught the mail......they would OWN me.

Venting is good for the hypertension.

edp 

[fused]

I feel for you, edpcross, 8 days is ridiculous.

[Anonymous]

Thanks, I just sent a HEINOUS letter to HSBC and got their regular junk!  My point is that WE have got to get ourselves out of the NEED to USE the CRAZY people that only USE us.  Our best offense is to PAY them------most people ( American's) won't do that ----But SMART people will and then they will be begging us for money  Just like when they BEGGED me for a 1.99% for the LIFE of the loan--As long as I  don't charge on that card then they are STUCK!----Someone tell me the real facts because that is MY greatest fear??????---That life of the loans will be called inALSO!????????

AND I will be damned if these maggots get TARP money!

They are so busy 'shoring up their wealth"...buying Mexico and parking meter acquistons that they should go to prisom..  Once I am free ad clear of them then that iw it000I will NO LONGER OWE THE COMPANY STORE. 

TARP money???????/     I  may not be the sharpest crayon here BUT  give me a break!

By the way----mu husband woke a deal to "motgage"everythiing we owmed to a company in Costa Rica and THEN moved the assets to Panamw---so this is not a little $20,000 credit limit that hs really effected me-----Yes--it has but NOT in the way that it has MOST.  

I am back to where I was twenty years ago , and i owe him------my peronalu premartail belongings-----if yu ever awant someinfo on how to set up a trust you need to call me

[Anonymous]

When I wrote them about the long delays in posting payments, the wonderfully clueless CSR agent responded as follows:

We can certainly understand your concern regarding the time frame set on our Online Bill Payment Service.

Keep in mind that our Online Bill Pay is an optional service to our Cardholders and if you choose to use it, it will be necessary for you to comply with the Terms and Conditions of this service.

If today is a business day and you submit a one-time payment before 4 P.M. CST, the payment will be credited to your credit card account today. Payments made after 4 P.M. CST will be credited to your credit card account on the next business day. Saturday and Sunday are considered the same business day, and your payment will be credited to your credit card account on Sunday if submitted before 4 P.M. CST. Same day payments are available; however, a Rush Payment Fee will apply. We hope you find this information helpful.

Basically they just give you shine off and say if you want us to process it in time and not charge you the additional finance charge and so on, then pay us to post your payment same day or we will keep doing what we want.

[Anonymous]

This is exactly what happened to me! And this is probably the main reason I joined this service.  I've always maintained a good credit rating, but things seem to be going crazy lately - my credit score has dropped pretty dramatically in just the past few months and HSBC lowered my limit about $2000, from $9500 to $7500 - just $500 more than the present balance.  Our daughter got married in December, and we used this card more than we had - used to keep a very low balance - if any.  My husband and I also put a cruise on this card.  I've just paid $1000 toward the balance, and plan on paying it off ASAP.  Will NEVER use it again!!!

[Anonymous]

cici2 - that's so helpful to hear - Your experience is a very good example of the impact credit limit usage has on our credit scores. High usage has a very dramatic impact and the high usage for the wedding dramatically lowered your FICO scores.   As you lower your usage, your scores will go back up - of course it's even harder to lower your usage when your credit limits are decreased!!  A very good reminder to us all to not keep balances - or keep them reporting at 5-9% to protect our scores.  Thanks for sharing your experiences - it's a big help to all of use learning how to play (and win) the credit card game.  Moral of the story: CC's are NOT our friends - they are tools we can use (if we follow the rules) to raise our FICO scores.  Remember the story of the snake who asked the man to carry him up the mountain?  The man said, "You'll bite me!"  The snake promised he would not.  When they got to the top of the mountain, the snake bit the man.  When the man was surprised, the snake replied, "You knew what I was when you picked me up!"  We know what CC's are when we sign on - and I remind my family that they are tools to raise FICO scores - follow the rules or they WILL bite you -- no matter what they say.  Thanks for sharing your experiences and helping us learn!

[Anonymous]

I just noticed this link:

http://finance.yahoo.com/banking-budgeting/article/106716/How-to-Blow-Your-Credit-Limit-Without-Spen...

"David Chaplin-Loebell wouldn't have minded that American Express cut his unlimited credit line to just $5,000. Except that when AmEx reduced his line in October, he had an outstanding balance of $10,000."

"Nasty as it may be, the practice of cutting credit lines below the balance is legal -- at least, for now, says Chi Chi Wu, a staff attorney for the National Consumer Law Center, a consumer advocacy group. Federal Reserve rules requiring lenders to give cardholders 45 days notice before reducing a credit line to the point that it would trigger penalties won't go into effect until July 2010. "[Until] then, there are no federal protections," says Wu."