HSBC put me onto Debt Collections when I'm not in debt?!

bobwilson

I have an HSBC bank account and credit card with an auto direct debit set up between them, so my credit card automatically siphens money from the bank account when it needs it.

Today my phone stopped working and my credit card stopped working!

I called HSBC to find out what's going on. After 45 minutes on the phone, they told me my credit card had gone over its limit, and they sent me across to Debt Collections!. How is this possible, since there is plenty enough in my bank account to pay it off? Lawrence at HSBC said he didn't understand it.

I've been with them for over 15 years and never had a problem.

They sent me across to debt collections who were rather curt, assumed I didn't have enough money to pay the credit card bill. I explained to them again that I did have enough, and have a direct debit set up.

After almost an hour on the phone, it turned out apparently, the direct debit goes out once a month only. If you go over the limit before the direct debit is due, it will put you onto collections and stop your card! Incredibly, they don't call you, they don't warn you, and there is no service to pay it off automatically before it reaches the limit. You apparently have to keep your eye on it like a hawk, even if you have more than 3 x the amount available in your bank account. The 'automatically increase credit card limit' option apparently doesn't always work. But they don't tell you this before hand. How utterly ridiculous.

He said they waived the £12 over the limit fee this once for me - the bloody cheek!

To top it off, giffgaff have now stopped my mobile phone, so I'm stuck without a phone, and the credit card is still getting declined because it takes up to 48 hours for them to re-enable it apparently.

What happens if you're a multi-millionaire and don't have time to keep an eye on the pennies to make sure your credit cards don't go over their pathetic little limits? Think about it, a multi-millionaire running a business buys new stock and goes over his £6500 on his credit card, then HSBC suddenly cancel his card, he has to phone the up for an hour and wait 2 days to be able to use his card again. HSBC then tell him it could happen again unless he keeps his eye on the limit and keeps paying money from his bank account into the credit card manually online. Contrary to what HSBC says, I find it hard to believe there is no permanent solution to this.

Dogger69

It seems you do not understand how direct debits work - payment is taken on a specific date each month, for either the minimum payment or the full amount, whichever you specified when you took out the credit card. A lender would not be allowed to take random payments at other times, as you need to be aware first (through your monthly bill).

Yes, it is up to you to ensure you do not exceed your card limit.

I fail to see your complaint.

MamaMoo_2

What sort of millionaire would only have one card? They'd most likely have a charge card with very little in the way of a limit, rather than a credit card. And debit cards are always useful too.
I fail to see why, if there's so much in your current account, you don't just use your debit card whilst your credit card is blocked.
If you rely on your credit card, it's up to you to monitor what you're spending. It's not the credit card company's responsibility to baby you, you're responsible for what you spend. Perhaps you could look into whether you could set up text limit alerts?

Dogger69

bobwilson wrote: »

What happens if you're a multi-millionaire and don't have time to keep an eye on the pennies to make sure your credit cards don't go over their pathetic little limits? Think about it, a multi-millionaire running a business buys new stock and goes over his £6500 on his credit card, then HSBC suddenly cancel his card, he has to phone the up for an hour and wait 2 days to be able to use his card again. HSBC then tell him it could happen again unless he keeps his eye on the limit and keeps paying money from his bank account into the credit card manually online. Contrary to what HSBC says, I find it hard to believe there is no permanent solution to this.

I expect a multi millionaire would have staff to keep an eye on such matters!

maginot

I agree with you that it shouldn't be going to collections just for over spending on your card. That should only really be if you are unable to pay your debts when asked e.g. Statement date. Also your card shouldn't be cancelled straight away (although perhaps it helped as you shouldn't be spending on it)

However you don't really have any other complaint. Yes you should manage your spending and be able to keep within your limits. If this is not possible then you need to contact them and increase your limit so there is less chance of it happening.

In your example, if a business was spending £6500 regularly on their card they would have a credit limit of £8/9/10,000.

You went over your limit and agreed to pay £12 when you signed up to their credit card, you should really be a bit more humble and thank them for waiving this charge.

wealdroam

maginot wrote: »

I agree with you that it shouldn't be going to collections just for over spending on your card.

I read it that when the OP phoned HSBC, they transferred the call to 'Debt Collections' to explain the issue to the OP.

meer53

Your account, you spent more than you had available, your responsibility to make sure you manage it within it's limits. Why do you expect HSBC to monitor your account for you ?

A multi millionaire isn't going to have a card with a "pathetic little limit", they'll have a charge card with no limit.

Why was your phone cut off ?

You really should make yourself aware of how credit cards and direct debits work, maybe the whole banking thing too as you quite obviously don't understand the basics.

Hintza

In the old days the company would have called and said you this transaction will take you over your limit, what would you like to do about it. Then the OP would have the opportunity to transfer money or decline the transaction.

wealdroam

Something makes me think that it might be a little while before Bob Wilson becomes a multi-millionaire.

bobwilson

MamaMoo wrote: »

What sort of millionaire would only have one card? They'd most likely have a charge card with very little in the way of a limit, rather than a credit card. And debit cards are always useful too.
I fail to see why, if there's so much in your current account, you don't just use your debit card whilst your credit card is blocked.
If you rely on your credit card, it's up to you to monitor what you're spending. It's not the credit card company's responsibility to baby you, you're responsible for what you spend. Perhaps you could look into whether you could set up text limit alerts?

credit cards offer protection, debit cards don't. You should ALWAYS use a cc, especially when buying online.

what is a charge card?

bobwilson

Dogger69 wrote: »

I expect a multi millionaire would have staff to keep an eye on such matters!

you expect wrong!;)