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Old 22nd March 2010, 13:52   #391
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Red face HSBC - Credit card drastic drop in limit - reason internal policy

I have been a customer of HSBC for 5 years now and have a powervantage salary account, some FDs as well as a gold credit card with them. Recently when I had to make a transaction of 1.1 lacs, I checked the hsbc gold card and to my surprise the limit had been dropped to 1/10th of the original (from close to 3 lacs to 24k)

Now HSBC is the only cc I used, as I can easily pay through salary account, so I decided to check what happened.
When I emailed/called them, I explained to them that I was late in one payment (10k or so) when I was on international travel, but otherwise my spends are always 3k or so a month for fuel and payments always on time. They said this has nothing to do with my performance or past payments, this is purely an internal decision and the policy cannot be disclosed.

The option they gave me was that given my excellent performance, I can apply for an upgrade to platinum card, pay the 6k joining fee, however they still can't be sure how much limit I will get there. I said I was confident given accounts/FDs with them, the limit should not be low, so how long will this process take - they said 21 days.
Again no go for me, as I have to make my international transaction of 1lac+ this week.

I asked about a temporary increase in limit, they said for accounts where limit has been dropped they can't do anything for 6 months. They will review my limits after 6 months and increase or reduce or maintain based on internal policy!!

I am not sure what to make of this - why would they reduce my limit for no reason whatsover. Whats the point of banking with them for 5 years for all my needs, if this is how they treat me. When needed the most, the credit card limit is next to useless

I have not seen this happen with icici or sbi credit cards, which also I have been using for close to 8 years now. Unfortunately, I never upgraded these cards to gold, etc. and asked for higher limits, as I was always confident I have the hsbc gold card for a large transaction, if needed some day. Never wanted too many credit cards with too high values, and then not being able to repay.

Lesson learnt - don't depend on 1 bank's credit card, such changes can completely effect all your plans for travel or high value transactions.

Next steps - I don't think I can do anything, don't want to cancel the card or upgrade. Will try and use hsbc visa debt card or have to ask daddy for his card for my transaction, embarrassing after all these years of independence

Last edited by jassi : 22nd March 2010 at 13:58.
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Old 22nd March 2010, 16:03   #392
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I have been a customer of HSBC for 5 years now and have a powervantage salary account, some FDs as well as a gold credit card with them. Recently when I had to make a transaction of 1.1 lacs, I checked the hsbc gold card and to my surprise the limit had been dropped to 1/10th of the original (from close to 3 lacs to 24k)

....
You forgot the golden rule of talking to CC companies, threaten closure. Thats the only thing that works.
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Old 22nd March 2010, 16:26   #393
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You forgot the golden rule of talking to CC companies, threaten closure. Thats the only thing that works.
i mentioned that once or twice, but given my 2-3k per month and the occasional international travel (and resulting gadget buying spree ) i don't think they cared. The AGM (or so he said he was) on the call, did not react to me mentioning that I would cancel the card - maybe I wasn't threatening enough.
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Old 22nd March 2010, 16:29   #394
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Hi jassi,

Close that card, and get the HDFC Bank Platinum Plus card. The best one right now!
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Old 22nd March 2010, 16:42   #395
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At the moment many bank are on a cutting spree. Amro apparently are trying to wind up the card business, and as stage I are reducing all limits to 10%.

I for one ask for 100% auto debit, so they cannot blame any late payment on me.
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Old 22nd March 2010, 16:57   #396
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Hi jassi,

Close that card, and get the HDFC Bank Platinum Plus card. The best one right now!
Thanks Gansan - i just sent them a message from website indicating that they can cancel my card and also that I will urge other internal employees (in my company) to move to HDFC, which is also an approved bank for salary account in my company.

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At the moment many bank are on a cutting spree. Amro apparently are trying to wind up the card business, and as stage I are reducing all limits to 10%.

I for one ask for 100% auto debit, so they cannot blame any late payment on me.
possible - but I never expected this of HSBC, especially because I have a salary account with them which is linked to the CC.
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Old 22nd March 2010, 17:08   #397
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in 2006 ICICI overcharged me. I think it was a double charge my mistake which when bought to their notice, was reimbursed but not fully. They had not refunded around 1800/- odd. wrote numerous letters, e,ails but no avail. Now i get sms from the bank to pay the amount which has now become almost 10,000/- but i dont owe them. I have also recorded complaints on their website but no one gets back to me. I want this finished or they will spoil my credit. Whom should i speak to or contact. If anyone knows any senior ICICI personnel, im ready to show them the papers to prove this. Emailing does not work with banks i have seen, they just dont care.
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Old 22nd March 2010, 17:28   #398
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possible - but I never expected this of HSBC, especially because I have a salary account with them which is linked to the CC.
ok something is really wrong with the credit card market - i just checked with icici if they can temporary increase limit on credit card and they said at the moment they have stopped this facility till further notice - what happened to the cc market, there was a time when they would give a brand new card if they heard one wants to make a high value transaction and sales guys would be hovering around you forever!!
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Old 22nd March 2010, 17:53   #399
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@ V16: I think Netfreak should be able to help you with this. Or try Banks Obsbundem (or whatever it is called!).

@ Jassi: Even I faced this from HSBC (Had 2 cards earlier), when I threatened to cancel one of the cards, they happily took my request and cancelled it! Not that I cared, but the point is, the lesser the card holders, lesser is the risk. They would be happy to cancel your card

Last edited by amtak : 22nd March 2010 at 17:55.
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Old 22nd March 2010, 18:02   #400
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in 2006 ICICI overcharged me.
just goto rbi ombudsman - i have had an issue with icici which lasted for a year - they did not recognize my payment. Finally an email to ombudsman and it was resolved in a 2-3 weeks.

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@ Jassi: Even I faced this from HSBC (Had 2 cards earlier), when I threatened to cancel one of the cards, they happily took my request and cancelled it! Not that I cared, but the point is, the lesser the card holders, lesser is the risk. They would be happy to cancel your card
yeah but they are also going to lose my salary bank account and multiple others not only in india but across apac - preparing an email for internal circulation
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Old 22nd March 2010, 18:05   #401
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Originally Posted by f1head View Post
You forgot the golden rule of talking to CC companies, threaten closure. Thats the only thing that works.
For some reason, this doesn't seem to be working these days

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Originally Posted by sgiitk View Post
At the moment many bank are on a cutting spree. Amro apparently are trying to wind up the card business, and as stage I are reducing all limits to 10%.
Cutting spree??? Well I should be lucky then, Amro has not cut on me since 2006 or so; Are you sure they're winding up? I thought RBS had bought them & I received some communication on them; ever since then I'm awaiting for a new card from RBS

Well, I'd a bad experience with ABN Amro & even had a written letter & apology from Amro stating that it was their mistake; As a matter of fact I could've easily walked to consumer forum & won the case, but being my first experience I was little skeptical walking there (worried about taking leaves from office just for this sake) so I'd left it apparently.

Last edited by aargee : 22nd March 2010 at 18:07.
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Old 22nd March 2010, 19:11   #402
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To all :

If your bank doesnt care that you are threatening to quit, then please do quit unless you are on some super awesome credit card program. These days HDFC and Kotak are giving good service and Free cards, so try with them. Especially those who keep balances of >2 lakhs, its very easy to get a good free card.
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Old 22nd March 2010, 19:20   #403
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I've held a HSBC card for about 7 years now and I can remember only 1 occasion in all these years where the payment was delayed (that too by 2 days). That said, my limits have been reduced from 1 lakh to 24k and there was no direct intimation to me on the reduced limits. I got to find out the hard way when I tried making a hospital payment of 20k and the transaction didnt go through. HSBC's response was that every statement carries the credit limit and I should have found out by looking at that. I was kind of taken aback by the response as this was so unlike HSBC whose warm customer service I've been enjoying all these years. My request for review of the card for an increase in limit was denied and by subsequent request for cancellation of the card was responded to instantly with a "Sure Sir ! I can help you with that right away" !!!

I work in the credit card industry and know for a fact that all banks have tightened screws on unsecured loans (credit cards being one of them). So basis recommendations from their risk teams, banks are undertaking various measures to cut down on the risk profile and thereby their delinquency rates. Just in case you didnt realize it, getting a credit card approved today is much much tougher than it was even a year ago and IS NOT the focus area for banks today.

However, its a pity that a lot of genuine customers with the true potential to spend and repay on time are being impacted as well and the banks are doing nothing to support such customers basis their past history.
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Old 22nd March 2010, 19:46   #404
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Originally Posted by amtak View Post
@ V16: I think Netfreak should be able to help you with this. Or try Banks Obsbundem (or whatever it is called!).
Quote:
Originally Posted by jassi View Post
just goto rbi ombudsman - i have had an issue with icici which lasted for a year - they did not recognize my payment. Finally an email to ombudsman and it was resolved in a 2-3 weeks.
Does anyone have the email of the Ombudsman? How do i contact them? I have an issue even with HSBC. I had two HSBC cards and they credited the account of one card while the other showed no payment. Their mistake entirely. after three years they settled. They tried everything, from cancelling my card to threatening calls etc etc. Till one person came to meet me and promised to resolve it asap. It did get resolved by me paying into th ecredit of the card it was meant to be paid again whilst having a credit balance in my other card account. But after that no letter of my credit being sorted, no apology, and even my cancelled credit card is not resumed. I wonder if i can still take them to the Ombudsman? Will need guidance on this one from all you guys.
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Old 22nd March 2010, 19:59   #405
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Originally Posted by V-16 View Post
Does anyone have the email of the Ombudsman?
Here you go on ombudsman on HSBC
IMHO, if you approach ombudsman, they will provide a compromise between you & HSBC; if you're seeking any compensation from HSBC, pls do not approach ombudsman.

EDIT - Looks like HSBC does not want to email their ombudsman & want to cut down trees (provide written letter); not sure how much the feedback/suggestion link is taken seriously. One level down to ombudsman is writing to Nodal officer for which they've provide the email - nodalofficerinm@hsbc.co.in

Last edited by Technocrat : 22nd March 2010 at 20:41. Reason: Removed color tag.
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