HSBC no longer paying out charge-backs until they have 'investigated'

Keebsdad

I don’t know if this has already been posted but HSBC have changed their policy on paying out chargebacks before they investigate. Back in April I raised a chargeback request against a Ryanair transaction and their stated policy on their website was to pay first and investigate with the proviso that a recharge may have to be made if the claim was invalid. It still took them two weeks and complaints from me before they paid but I got my money.

 

On July 1st I raised another claim because Ryanair still hadn’t refunded another flight and gave HSBC 2 weeks to pay out. On querying what was happening today it becomes apparent that HSBC have removed that policy from their website and I will have to wait 60 days before the investigation is completed. There seems little point in raising a chargeback request if that timescale is maintained.

 

Another case of HSBC protecting their interests and that of the merchant above those of their customers.

bonkersbonkers1

A chargeback is still the best and quickest way to get your money back even if you have to wait 60 days.
You chose to use in this instance Ryanair - why should HSBC stump up the money from its own funds when it is not at fault?
You could be accused of abusing the system because you know that Ryanair will refund you eventually.
(I was in the same boat waiting for refunds from airlines due to Covid 19 but I chose to wait for the refunds to come through - which they did).

MinuteNoodles

Keebsdad said:

Another case of HSBC protecting their interests and that of the merchant above those of their customers.

You owe me £1000 for that stuff I sent you. I want my £1000 now. I'll PM my bank details, I expect it by the end of the week.

Does that seem fair to you because that's basically what you're asking them and expecting them to do. Clearly it must be OK given you complaining about them not automatically giving you money back just on your say so, instead quite rightly deciding that they want to check it's a legitimate claim first.

gt94sss2

I imagine HSBC have got burned by the number of claims going through which then then turn out to be invalid and as a result honest customers suffer with the withdrawal of what I assume was a goodwill gesture on their part.

I'm also not sure what you mean by 'gave HSBC 2 weeks to pay out' as they will work to their own timescales not yours.

Keebsdad

My issue is that they have changed their policy in a manner which is detrimental to their customers

The_Fat_Controller

I think it entirely reasonable for an investigation to precede a payout.
I hope other institutions follow their lead and manage to weed out those who are making spurious claims and see this as a way to compensate themselves for not taking out insurance or allowing a reasonable time for the company to respond and repay.

Sandtree

Keebsdad said:

My issue is that they have changed their policy in a manner which is detrimental to their customers

But positive to their shareholders who they have a legal obligation to deliver best outcomes to.

If you have a legitimate claim you will still get your money back but it will take a little bit. If you don't have a legitimate claim or the claim cannot be fulfilled then HSBC don't have to try and recover money from you. Whilst their previous policy was friendlier with the inevitable fraud risk and bad debt situations its understandable why they no longer want to effectively give you an interest free loan

gt94sss2

Keebsdad said:

My issue is that they have changed their policy in a manner which is detrimental to their customers

You do actually expect Ryanair to refund the money, don't you?
If so, why raise a claim in the first place?

Migster

I'm surprised HSBC are even accepting this as a chargeback. It's not as though Ryanair is refusing you a refund.

MEM62

gt94sss2 said:

Keebsdad said:

My issue is that they have changed their policy in a manner which is detrimental to their customers

You do actually expect Ryanair to refund the money, don't you?
If so, why raise a claim in the first place?

Migster said:

I'm surprised HSBC are even accepting this as a chargeback. It's not as though Ryanair is refusing you a refund.

The answer to both your questions is simple.  Ryanair are flouting the rules, playing games and delaying payments as much as they can get away with.  In fact at one point I believe that they intimated that no refunds would be made.  The people that are owed money, understandably, do not want to play Ryanair's games, are getting impatient and therefore looking for alternative ways to recover their money.
Personally, I would never use them as this behaviour is to be expected based on how they have treated customers in the past.  I may pay a little more by using carriers such as BA but the trade off is better customer service.  I has no issues obtaining a refund when the flights I had booked to travel to Greece in May were cancelled.  You pay your money and make your choice.