HSBC incorrect interest charged

matUK

Please double check your HSBC credit card statements. The bank charged me interest on a purchase (I paid for my car insurance) which was paid off in full, while I have got another 12 months on a balance transfer. The money I paid covered the expense that month, plus I paid a little extra towards the outstanding balance transfer. Additionally HSBC have collected the minimum amount via direct debit. I messaged the bank stating they are wrong, got that incorrect interest credited back to my account and was promised my account would be monitored for another 3 months to make sure all payments I make are allocated properly. Sadly, their customer service is based in India!

tacpot12

Why is it sad that their customer service is based in India? You have received excellent service from their Indian customer service centre; you had a problem, they fixed it for you AND will keep any eye on the situation in case it happens again. I'd suggest that the fault was not with the customer service you received but with the IT system that incorrectly allocated the payments to the outstanding debts.

PeacefulWaters

If you didn't clear the full statement balance (made up of purchase AND balance transfer) then they were right to charge you interest.

The Indian call centre have been generous to you. Perhaps you should be more generous about them.

Marcio45

I have made the same mistake before.
If you have a balance transfer running in your card and you make a purchase, you dont get the 50 odd day interest free to pay.
This is because to avoid paying interest you have to pay the full balance on your next statement, and not only the purchase, which you wont do because you have a balance transfer.
Someone correct me if i am wrong.
There is only a card that i heard treats balance transfers and new purchases differently, think its nationwide.
Maybee the bank paid out of courtesy, or maybee the bank assistant wasnt aware of this.

Dobbibill

What was wrong with your minimum payment DD?

Is this not what you arranged with them when you made the BT?

HSBC have been generous to refund you the interest but if you read your T&Cs, you'll find that this is normal practice as the interest free period only applies if you pay your balance off in full. As you have a BT on the card, I guess you are not paying the full BT and purchase balance.

There is a good chance that there will be trailing interest next month too. Again, all normal for adding purchases on a card with an existing BT.

Strummer22

Moral of the story is: have separate cards for balance transfers and purchases. Makes sense as the cards with the best deals for 0% on BTs are not the same as cards that have best deals for 0% periods on purchases.

grumbler

matUK wrote: »

... to make sure all payments I make are allocated properly.

Don't rely on this and don't do the same mistake again.
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