Tuesday, September 2, 2008

HSBC - the bank that giveth, the bank that taketh away

Coop and I have two credit cards. One is from a warehouse type store where, when necessary we purchase major items at a significant savings, things such as tires for the car. The other is your basic all purpose major credit card we keep in case of emergencies. We use it occasionally to keep it active and then pay the bill in full immediately upon arrival. Let me rephrase that...we used to use it occasionally. Today when I tried to use it, my credit card was denied. I assumed it was just a glitch in the system and thought nothing more about...that is until the mail came. That is when I received the following notice telling me that I "no longer have access to any of my card benefits" and to "please discard any cards associated with this account". At least they said "please".

It seems the account has been closed because of inactivity. That more correctly should have read "inadequate activity according to our preconceived idea of what determines a credit worthy account holder." Obviously when they kept raising my limit and I didn't raise my spending level, they decided my account was not worth more than the paper this cancellation notice was written on.

We'll manage without the credit, we do a fine job of it already. It was just nice to have that shiny little card in my purse in the event of an emergency situation. I would even have been willing to pay an annual fee to keep it active since they weren't making much off my purchases and nothing off interest or finance charges. I get that. I wasn't given the option of an annual fee. In fact I wasn't given any option. Sorry Mrs. Cooper, you're just too darn responsible to have access to that kind of credit so we're just going to take it all away. How do you like those apples? They've left a somewhat sour taste in my mouth.


  1. How can thay do that. Doens't seem far.

    Hubs and I are trying to kick our credit card habit and paying off our debit.

  2. I'll see your credit card and raise you a savings account. For years I did all of my banking with Empire Credit Union, including my car loan. When my company decided to switch to direct deposit, I had to get an account at another bank because Empire didn't have a branch in Ashland. I left my savings account open with about $25 so I would remain a member with benefits of the credit union. A while ago, I got a letter similar to yours from them. Not only did they close the account, they kept the funds! No warning, no chance to withdraw, nothing. Who knew they could do that?!

    You know that you can always count on us if you need emergency help. You were there for us when we needed help, and we will always remember that!

  3. Wow, I've never heard of such a thing. We have a discover card that sits in a box in case of emergencies and have had it for years with no activity except when they send a new card because the old one expired. I don't have an annual fee either...

    Princess jenni - I don't think the bank can keep your money unless they can justify it with "bank fees" but I'd look at that closely.

  4. Hi, I just came over from technori and am loving looking around the blog.

    Bizarre about the credit card, I'm sure there are other offers out there if you want one for emergencies (like having to rent a car).

    Love the pictures of bottled fruit all lined up!

  5. Hmmm..we have only one for the same reason as you..emergency. I was told, however, a few years back, in order to keep it active, we needed to KEEP IT ACTIVE, so once a month, I buy our chicken feed with it. That's all.

  6. Carolyn - me thinks they can do pretty much as they please.

    Jenni - I remember you telling me about that. I do know that most banks have the right to keep your funds if the account is inactive according to their time frame and the amount is at or under a certain amount. Not right, but obviously lending institutions have a lot of leeway as to what they are by law allowed to do. Thanks for the reassurance sweetie.

    Kathie - I used to have cards like that, that they would continue to renew even if inactive. Obviously this wasn't one of them!

    verde - hey, thanks for visiting and leaving your two cents!
    Hope you'll visit often!

    Cowboys wife - hey, how ya doing? Yeah, I used the dang card now and then, but I guess not now and then enough.


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