Help!

Rachel23_2

I have just managed to get HSBC to agree to refund the charges they applied to my credit card account and sent back the acceptance form, signed and with a letter saying could they pay it into my bank account, rather than crediting it to the credit card. Basically I don't have an actual credit card for this account, as they didn't send me one when it expired and I am also trying to become debt free, so have no wish to use a credit card. I received a letter today stating that they weren't refunding the money into my bank account but crediting it to my credit card as QUOTE 'the refund related to this balance we would always pay off any balance owing on the account first'.I half-expected this but NOT what that have actually done. They have not taken the charges off the balance I owe, but instead they have increased my credit limit by the amount they owe me in charges. Which isn't actually refunding me any money. I am really upset and don't know what to do. My partner and I have been living in extreme financial hardship for over 2 years now, due to a long-term serious illness and are now financially trying to get back on our feet. Does anyone have any suggestions?

natweststaffmember

Rachel23 wrote: »

I have just managed to get HSBC to agree to refund the charges they applied to my credit card account and sent back the acceptance form, signed and with a letter saying could they pay it into my bank account, rather than crediting it to the credit card. Basically I don't have an actual credit card for this account, as they didn't send me one when it expired and I am also trying to become debt free, so have no wish to use a credit card. I received a letter today stating that they weren't refunding the money into my bank account but crediting it to my credit card as QUOTE 'the refund related to this balance we would always pay off any balance owing on the account first'.I half-expected this but NOT what that have actually done. They have not taken the charges off the balance I owe, but instead they have increased my credit limit by the amount they owe me in charges. Which isn't actually refunding me any money. I am really upset and don't know what to do. My partner and I have been living in extreme financial hardship for over 2 years now, due to a long-term serious illness and are now financially trying to get back on our feet. Does anyone have any suggestions?

Can you clarify that, has the credit card got a balance on it that is over the credit limit for the card? For example, if your credit limit is £200 is the credit limit £240?

I would have thought rather than increasing the limit in my example to £240 that they would minus it off the balance left over.

Rachel23_2

Yes the limit is £1000 and has now been changed to £1344. They have not taken it off the balance at all. That wouldn't have been so bad - as I would still be getting rid of some debt. All they have done is upped my limit to encourage me to get further into debt.

Rachel23_2

Sorry I misunderstood that - no I am under my credit limit by about a hundred pounds.

natweststaffmember

Rachel23 wrote: »

Sorry I misunderstood that - no I am under my credit limit by about a hundred pounds.

Then they need to repay the funds and not increase you credit limit. Did you keep a copy of what you signed?

Rachel23_2

No I didn't. I didn't think to. Is that bad?

natweststaffmember

Rachel, write back to the bank and tell them that they appear to have made an error in their settlement of your claim. They have INCREASED your credit limit and not REFUNDED the amount of charges owed to the account. Once they reply, respond again on here and if they don't play ball, we'll make them.

thriftymomma

Sounds like someone pressed the wrong button when they were sorting it. When you write to them, remind them that you have proof that they promised a refund not an increase in credit and if it is not resolved to your staisfaction with x amount of days, you shall refer the matter to the ombudsman.

Rachel23_2

Thanks for your advice. I will send them a letter and see what happens! Cheers.