HSBC Credit Card Problems

LXS

Havng an ongoing problem with my HSBC Mastercard atm. Just logged into my account to find that the credit card has tried to direct debit the full amount of outstanding balance out of my current account, despite the fact that I paid way over the minimum payment earlier in the month. They've now added a £5 late fee, and I imagine I'll be charged more when my statement comes in at the end of the month. I won't be able to pay the outstanding balance until I get paid this Thursday.

Does this happen often? Do I have a leg to stand on?

Something similar happened in September where I got a late fee for a late payment because I wasn't sure when the direct debt was scheduled. I complained and also wanted to know why my minimum payment amount wasn't being printed on my statements, to which they told me they don't because I have a DD set-up.

Will this be badly affecting my credit rating?

McKneff

Never pay anything till your statement arrives. The system takes your early payment but if you have paid it before the statement arrives or has been generated it will just deduct the amount. But it will register that for the previous month and not from the statement that you get.
If you dont pay on that statement then it will obviously see it as a non payment, hence the charge. Not sure why they have tried to take the whole amount though, you would be best ringing them.

LXS

McKneff wrote: »

Never pay anything till your statement arrives. The system takes your early payment but if you have paid it before the statement arrives or has been generated it will just deduct the amount. But it will register that for the previous month and not from the statement that you get.

That's the thing though, my statement usually comes through on the 28th of the month. So the last one came in on the 28th of Jan - I then payed in an amount in (not the full balance but well over the mnimum payment) on the 6th of this month. Yet they've still tried dipping into my current account last friday.

I'll give them a ring today and report back.

grumbler

LXS wrote: »

That's the thing though, my statement usually comes through on the 28th of the month. So the last one came in on the 28th of Jan - I then payed in an amount in (not the full balance but well over the mnimum payment) on the 6th of this month. Yet they've still tried dipping into my current account last friday.

For many CCs any payments made after the statement don't affect the amount taken by the DD.

However, this doesn't explain the late payment fee.

Wywth

grumbler wrote: »

For many CCs any payments made after the statement don't affect the amount taken by the DD.

However, this doesn't explain the late payment fee.

£5 is not a late payment fee, but a returned (failed) payment fee
http://www.hsbc.co.uk/1/2/credit-cards/credit-card/interest-rates

LXS

grumbler wrote: »

For many CCs any payments made after the statement don't affect the amount taken by the DD.

I didn't know this, and I think it's brutal. Here's me thinking I've easily paid off my min payment and then they try for the full amount which I now don't have until I get paid tomorrow (a week later).

I rarely use my credit card but I've had nothing but problems with this card since I started using it. I'm a bit of a newb in this area - my parents have told me to look around for a new card as this one seems more like a charge card. I'm not exactly sure what I need to be looking for - 0% balance tranfer, and as small an interest rate as possible?

Tixy

LXS wrote: »

I'm a bit of a newb in this area - my parents have told me to look around for a new card as this one seems more like a charge card. I'm not exactly sure what I need to be looking for - 0% balance tranfer, and as small an interest rate as possible?

The HSBC credit card works in the same way as the majority of other cards - its no more like a charge card than any other credit card. If you have set up a DD to pay the full statement balance each month then you are using it like a charge card but you don't have to have that DD set up.

With regards to considering another credit card - depends on how you use your card or how you want to use it.
-do you have a balance on a card at the moment that you are not in a position to repay and wish to transfer? If not then you don't need a 0% balance transfer?
-do you usually repay in full? if so then the interest rate isn't a major issue
do you usually repay just the minimum? if so then the lowest APR you can get will be best
-do you use the card abroard? if so look for one of the cards that has the best rate for overseas transactions.

grumbler

Get Aqua Reward. Initial limits are small, but it pays 3% cashback and doesn't charge for currency conversion.

Tixy

grumbler wrote: »

Get Aqua Reward. Initial limits are small, but it pays 3% cashback and doesn't charge for currency conversion.

Only a good idea if you are certain to always pay in full each month. If the OP wants to be able to pay just a proportion of the statement balance (as they did this month in post #1) then the APR on the aqua card is high and will cost more than they would earn in cashback.