HSBC / Costco Credit Cardquick trigger to tarnish credit

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I was late for a month in payment to HSBC/COSTCO credit card because of not receiving the email notification of the bill. I paid off the balance right away in addition to the exorbitant late fee upon receiving the notices, however, the late payment landed in my credit report nonetheless. This is unnecessarily harsh and a reflection of paranoia against regular consumers like me.

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  • Er
      Nov 29, 2008

    HSBC/Costco did the same thing to me. HSBC/Costco was almost never able to successfully deliver my e-bill, but for some strange reason was always able to sucessfully send the late notice, complete with finance and late charges. I didn't realize that I had a billing balance and had not received a bill. I paid the full amount due as soon as I received their late notice. but found that I had already been reported to the three credit reporting agencies as a bad debt. I notified HSBC/Costco customer service on four occasions over a two-year period of the problem with their billing service, but they refused to acknowledge a problem existed, and did not fix it. I will no longer use my Costco credit card, nor will I do business with anyone using HSBC in the future.

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  • Mi
      Jun 17, 2009

    Indeed, and as written above, HSBC/Costco did the same thing to me! I haven't purchased anything with the HSBC/Costco credit card for over two years, but a yearly membership fee exists to merely have the credit card. For two years now, an e-bill was supposedly sent to my e-mail address once a year about the annual fee, but I never saw it, and if it did arrive, went to my "trash" bin on Yahoo. In any case, they never sent a paper bill to my home or anything like that, and called me out of the blue to inform me that my account was past due, and that they reported me to the Credit Bureaus. As an attorney, and a person with good credit this is preposterous. I have now paid the full amount due as soon as I received their late notice via a phone call. I will no longer use my Costco credit card, nor will I do business with anyone using HSBC in the future.

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  • Li
      Jun 22, 2009

    I have had numerous issues and late fees when I have NO issues with any other cards and I always pay in full.
    HSBC's customer service is aweful and I am tempted to cancel my Costco membership to make my life easier and avoid unnecessary dings to my credit. I can't express my frustration enough.

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  • Jc
      Jan 15, 2010

    You're not alone. I can't believe Costco would allow a credit company like this to handle their credit accounts. If enough people cancel their memberships, they'll get the idea. I would definitely file a complaint with Costco headquarters in Issaquah. Don't even waste your time with HSBC. They don't care, and trying to explain anything to their service department personnel is an exercise in futility.

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  • No
      Feb 13, 2010

    Having suffered the ignominious attitude of this bank's customer service, I realized two things. First, it's not a bank, it's the MOB; ruthless, vindictive, greedy creeps. Informed by one such toad that not only was I to pay a penalty for placing my payment through a phone line (hello. If you web page does not work what shall we do?) a new policy reached into my pocket. My cost over my payment $50. Toads and shills. Second, service? Ha! There is no stinking service with these jerks. Had I gone into banking, I would be the fourth generation in my family to do so. It is greedy, evil, arrogant slogs such as these that reaffirms my decision to stay the hell away from such people and banks. Another instance, I was penalized because the due date was a holiday. I know of no other such banks which do this. The customer service whore said it with a laugh. I said, "You should be ashamed of yourself." Enough!

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  • Ra
      Dec 26, 2010

    Well, had the same problem. Moved to the area where there is no Costco and hadn't use the card. Membership landed on my card and I did not get an email of the balance (no option for autopay available). Got a notice from my credit monitoring that my score dropped from 770 to 650 next day after due date as account was reported past due for unpaid minimal balance of $10. Spend 3 hrs on the phone with HSBC (went to a second level manager), but I was able to prove that they did not send an email and late fees were reversed (which is so so), but most important they reversed reporting of late fees to credit all bureau and my score went back.

    I closed that card after all of that and no way in hell I am going back to HSBC.

    BTW, my wife also had a different card from HSBC and customer service was also very poor. We closed it as well.

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  • Gc
      Jan 17, 2011

    Had problems with overnight payment stated that they did not receive it, altho my bank had transaction number indicating that they had received it that night. Held payment for 4-days and then processed it late. They denied holding the payment and stated that they do not do that, bull. Anyway my bank guarantees the payment date, and paid the late fees. Have since learned that when this occurs and you speak to customer service at HSBC, you need to inform them you have tranactions numbers and all other evidence and you are reporting them to SEC or check with your federal overseer for that bank, and report them. They will immediately change their tune, because they know the are committing illegal acts, and don't want them investigated and face fines...They are the CRAPS, am switching to American Express...

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  • Bo
      Feb 11, 2011

    on 9 feb 2011 realized that i had not received an email for my costco bill, been doing this for a couple of years now, finally found the web site and guess what i had a late charge. Racky ( thats the way she spelled her name) reversed the late charge, did she reverse the ding to my credit report. I DON'T THINK SO. i decided to pay off my account and get rid of it. NOTICE THE DATE AT THE BEGINNIING OF THIS. today 10 feb 2011 GUESS WHAT i receive an email saying i have a bill due on 6 feb 2011. is there a problem or what? since it is now 7:00 pm and costco is closed i am going to stop, have a glass of wine and try to lower my blood pressure. trying to decide who to contact and bitc# to. i know its a big bank but it just ticks me off

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  • Li
      Mar 02, 2013

    I know this thread is old, but I was irked today about HSBC Retail Services/Costco credit card (suddenly can't download into Quicken) so I was searching online for answers and saw this. A few years ago I got hit with a couple late fees for the same reason, the e-alerts not working, but at the time I thought it was my fault somehow, then got angry when it happened again. They waived the late fee once. So I paid manually for a year or two then tried again. Bad idea! I guess I paid 2 or 3 late fees. Now the e-alerts are working. I wish it were something you could have a class action suit about! It was like a trap. They must have raked in the $$ in late fees!!! My husband just succumbed to Costco's discount deal if you get an Am.Express card...sigh. I wonder if they are replacing HSBC?

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  • Di
      Sep 28, 2013

    Same thing happened to us. Only thing on our Costco account was a membership fee, which didn't get to us until later due to a move. (Odd since our other creditors all managed to find us and all our mail was forwarded). Multiple late fees, 60 day overdue notice on all credit reports, ruining our credit scores and causing our other major creditors to slash our lines of credit, which have still not been restored, still pulling down our credit scores. We paid the member fee when we finally got a bill, complained through Consumer Finance Protection Board (govt agency) and got fairly quick response removing late fees and removing bad credit item. They cancelled our membership and good riddance. For their $55 membership fee (they couldn't have called us or emailed us? None of those contacts have changes in the last 15 years) we had to contact all credit reporting bureaus and other creditors multiple times, and we still have lost literally 10's of thousands in our credit lines. Why didn't they just cancel our membership???!! We closed out the credit card aspect of our Costco card years ago, paying with Amex instead. Note I believe they're with Capital One now not HSBC.

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