One of my fellow bloggers and a regular commenter on this site asked me to share this with you. What a nightmare!
Household Bank is ruining my wife’s credit
By Will Profit: My wife and I do not need nor deserve the hassle involved in straightening this out AGAIN! Household Bank, what are you going to do to correct this?
I will be sending this post, including our real names, to HSBC (Household Bank) and JPM investor relations department. This story begins with HSBC. My wife has had an HSBC issued Visa card in her name since 2006. She also had a JPMorgan Chase and Co. issued Visa card. Both cards had a decent interest rate and no annual fee. She was NEVER late making a payment and ALWAYS paid more than the minimum. We are fanatical about our credit.
In late 2008 the interest rate on both cards was arbitrarily raised DRAMATICALLY due to the global credit implosion. My wife decided to pay the balance in full on both cards. Plain and simple. She was not going to be robbed of money by the higher interest rates on the cards. Both cards had low, four figure balances. Not wanting to damage our GREAT credit score, we sought advice on closing these accounts. Our local bank (not HSBC or JPM) where we have our checking and savings, suggested that we first pay off the balances, wait 30-60 days to make sure all transactions were cleared, then write a letter to the three biggies in the credit score business, and state that she was closing out the two accounts along with proof that both accounts were paid in full. Then contact HSBC and JPM and close the accounts. SIMPLE.
In February of 2009 my wife paid off the JPM account in full. No problems. That same day, she attempted to pay off the HSBC card balance in full, online. The transaction was denied. She called HSBC and was told this is what she needed to do in order to pay off the balance in full:
(1) Pay half the balance online
(2) Pay half by cashiers check or money order
Strange, but ok, she did what they asked. The online payment was posted immediately. Three days later she attempted to log on to her account to see if the cashier check had been received and posted. She was denied access and was not allowed to access her account from that point forward.
She called HSBC and it was confirmed they had received the cashiers check. She was told that she had overpaid the balance by $36.00 and HSBC would send her a check for that amount. Great! This account balance was now at ZERO.
Soon thereafter HSBC sent her a letter stating her credit limit was being RAISED! Technically she was eligible for this because the account was still open even with a zero balance, and she was a member in good standing. See, I read the small print and have the originals of all the correspondence.
Approximately 45 days later she received her $36.00 refund check. YAY! Approximately 15 days after that she received this letter from HSBC:
[excerpt of letter]
[Dear SYDNEY *******,
We are writing to you regarding your account issued by HSBC Bank Nevada, N. A.
Unfortunately, after careful review of your account, we have decreased your credit limit to $******. This change , which will take affect immediately, was made because you are seriously delinquent in making the payment due on your account. Please do not make any new charges until you make a payment.]
My wife called HSBC and was told she had an outstanding balance of $4.58
She asked why a bill had not been sent, and was told that a bill had been sent. Now remember, THIS IS APPROX 60 DAYS AFTER THIS ACCOUNT HAD BEEN PAID IN FULL, HSBC HAD CONFIRMED THAT IT WAS PAID IN FULL, AND MY WIFE HAD RECEIVED A $36.00 REFUND CHECK FOR OVERPAYING THE BALANCE!!!!!!!!!!!
During this call, a supervisor assured my wife that HSBC would correct these errors. The $4.58 would be erased. Her account would be FULLY reinstated with her full credit line, and then they would let her close it out with no credit score damage. GREAT! THANK YOU!
On May 29,2009 My wife received this letter from HSBC:
[excerpt from letter]
Dear Sydney *******,
[ We have received your credit bureau dispute regarding your Household account. Thank you for your inquiry regarding the status of your Household account. This letter is confirmation that we are currently reporting your account to the consumer-reporting agencies as follows:
Account closed by consumer witha zero balance as of the date of this letter.]
So, she paid off the JPM account and let it sit dormant while attempting to straighten out the HSBC account. On July 29, 2009 she received this letter from JPM:
NOTE: (1) Remember, this account has a zero balance.
(2) I DON”T UNDERSTAND THE GOBBLETYGOOK LANGUAGE CONTAINED IN THIS LETTER!
[Dear Sydney *******,
After careful consideration, we have decided to closethe above-noted account for the following principal reason(s):
To few accounts paid as agreed compared to total accounts
Average length of time since bankcard(s) opening is to short
Too few open accounts with time on file greater than 24 months
This decision was based in whole or in part.....from this reporting agency:
Experian (TRW)]
My wife called JPM regarding this letter. She was told we had a knock against our credit score from HSBC. The rest of the JPM letter is smoke and mirrors. We have a long credit history involving loans/credit cards and our credit score reflects our dedication in keeping our credit good. Now we have two black marks on our credit score and it is not fair to us.
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