HSBC Credit Card Account Closed - Without notice

Schubp

Hello Forum, 

I am looking for opinions regarding a dispute with HSBC. I could not find anything in the T/Cs which would clarify the situation on my end. 

My card expired in March 2020. Very unfortunately I missed the February repayment. This would have been due around Feb 24 and I did not notice until March 10th. So I immediately made a higher payment. Not thinking about it really, but knowing I would be charged a late fee -which is fine, I was late- I kept using the card for smaller purchases via ApplePay. 

In March the card expired and I was not sent a new one. Later I was told it had been in collection for 3 months, which I did not know, because I was not told. I just thought there would have been a little jam with COVID 19 related things.

At the start of this month, just after making my payment, I thought I just give them a call, as I still had not received a card. At this point they told me for the first time, that the card had been cancelled. I still have not receive a notification, which they said they have sent on July 7th. Over the phone I was told they had cancelled the card because of two missed payments in a 12 month period. Which would have been in Feb 2020 and August 2019, both due to me paying the card not by direct debit. 

Here are my two questions: 
-Would it be compliant with their T/Cs to cancel a card due to missed payments? 
-Would they not be required to sent out a proper notification before closing a account? 
-Is it normal for a credit card company to close an account only 5 months after the missed payment? 

The account exists since 2016, is a standard card that comes with an advanced account, utilization on the card has been high and is now at 80%. 

Best
D

adamp87

Do you have the terms & conditions to hand? Most likely there’s a clause there saying they can close the account.

Ideally they should have sent you a letter or notification in your online banking but I don’t know if that’s a definite.

[Deleted User]

Schubp said:

Here are my two questions: 
-Would it be compliant with their T/Cs to cancel a card due to missed payments? 
-Would they not be required to sent out a proper notification before closing a account? 
-Is it normal for a credit card company to close an account only 5 months after the missed payment? 

1.  Yes - that is compliant, as it can be cancelled for any reason.
2a)  Usually, though not always, depending on the circumstances.
2b) It's not abnormal.

Schubp

Thank you for the quick replies. 

I actually read, that they can NOT cancel cards for any reasons. While their terms say that, apparently there is a credit act, which says they cannot. 

Adamp87, yes in fact I do. And their T/Cs state: 

"Ending the agreement for breach If 10.2: (a) you repeatedly fail to pay minimum payments on

time or go over your credit limit; or"
[Loads of other reasons]
"but we will give you advance notice and the opportunity to fix the problem before taking any of these steps (unless the problem cannot be fixed)."

So now I am thinking. While there were 2 fails to pay the minimum, these are way to far apart to constitute: "repeatedly". 
Additionally, they have violated their own T/Cs, but not giving me "advance notice and the opportunity to fix the problem".

I would much rather sort this out with HSBC myself, not taking it to another institution, and just want to find out, if I have a point here. 

D3xt3r5L4b

No you don't.
You also have little hope of them reinstating the card account and limit etc.

Schubp

Hi all, 
this morning I had reply from HSBC, which was a text block letter, saying they are uncomfortable re-opening the card. Which did not answer any of my questions, how they could think it was ok to close it at first without notice. 

I have had a quick look at the credit act, which apparently also requires to either have a reason which needs to be "objectively justified." or they will need to give 30 days notice, if I read correctly. 

Is there someone who would know if these apply to credit cards? 

walkerscott1

I have had a Capital One Credit Card for 20 years with a 15K limit but have hardly used it over the last few years. I have a top 999 credit score with Experian and now without warning Cap1 tell me that they are closing down my account? It has annoyed me as I am a pensioner and ex veteran who has earned his credit worthiness ... 
Now today I hear from RBS with whom i have also been with for 20 years and use their card for shopping etc that they are reducing my limit from 14K to 10K to help me manage my account??? 
I am asset rich and have a guaranteed government income of £40K and find this all a little odd. Is it because I am now a pensioner and or a military veteran I wonder?

k12479

Schubp said:

So now I am thinking. While there were 2 fails to pay the minimum, these are way to far apart to constitute: "repeatedly".  

Two missed payments in the space of seven months, before COVID even disrupted anything, would certainly raise concerns to me.

[Deleted User]

walkerscott1 said:

I have had a Capital One Credit Card for 20 years with a 15K limit but have hardly used it over the last few years. I have a top 999 credit score with Experian and now without warning Cap1 tell me that they are closing down my account? It has annoyed me as I am a pensioner and ex veteran who has earned his credit worthiness ... 
Now today I hear from RBS with whom i have also been with for 20 years and use their card for shopping etc that they are reducing my limit from 14K to 10K to help me manage my account??? 
I am asset rich and have a guaranteed government income of £40K and find this all a little odd. Is it because I am now a pensioner and or a military veteran I wonder?

No. Participation in the armed forces and subsequent retirement from such isn't a part of anyone's lending criteria. Neither is your 999 Experian score.

Check your credit files to see what appears on each. But it sounds as if your Cap One card has been closed through dormancy and a 4k limit reduction is nothing out of the ordinary.

Shakin_Steve

walkerscott1 said:

I have had a Capital One Credit Card for 20 years with a 15K limit but have hardly used it over the last few years. I have a top 999 credit score with Experian and now without warning Cap1 tell me that they are closing down my account? It has annoyed me as I am a pensioner and ex veteran who has earned his credit worthiness ... 
Now today I hear from RBS with whom i have also been with for 20 years and use their card for shopping etc that they are reducing my limit from 14K to 10K to help me manage my account??? 
I am asset rich and have a guaranteed government income of £40K and find this all a little odd. Is it because I am now a pensioner and or a military veteran I wonder?

I'm afraid you can't earn creditworthiness. Lending decisions are based on several factors, including the fact that, if you're not using your £15K limit and, therefore, not making the bank any money, someone else might.

adamp87

k12479 said:

Schubp said:

So now I am thinking. While there were 2 fails to pay the minimum, these are way to far apart to constitute: "repeatedly".  

Two missed payments in the space of seven months, before COVID even disrupted anything, would certainly raise concerns to me.

I don’t know why you are trying to fight this Schubp they’ve decided to close your account & don’t want your custom. Look elsewhere. They aren’t going to change their mind based on the evidence suggested.