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  1. #1

    Default "Opt Out" of Credit Card Change in Terms, Bank is Not Abiding by New Terms

    My question involves a banking matter in the State of: California (Bank is HSBC Bank Nevada, N.A. (Carol Stream, IL)

    On December 2nd I received a "Notice of Change in Terms" sent via regular first class mail, it is not dated anywhere. It stated that they are implementing changes and my APR, late / over limit fees etc. are all significantly going to increase on both my current account balance and future purchases.

    The notice specifically states, "The new terms will apply to all new and existing balances unless you notify us in writing that you do not accept this change. We must receive your notice within 30 days of your receipt of this notice. You must include your name, address and account number and mail it to..."

    I have multiple accounts with this bank, they did not indicate which account this was for, by including the last 4 digits or anything of that nature. So I started calling every number I could find related to my accounts asking if they had sent this to me, finally I was able to confirm which account it was regarding and therefor able to send my opt out letter with the information they requested.

    I sent them the letter, with every bit of information just as requested. I sent it Priority with delivery confirmation to prove it was sent and retained a copy.

    Today I received a letter from them, acknowledging that they received my request to opt out, however it was received "past the deadline" and for this reason my account will stay open and subject to the new terms.

    This reply letter was dated, exactly 3 weeks from when I received the notice.

    What do I do from here?

    They sent me the first letter, in an unidentifiable manner, not dated or even post marked (pre-paid postage printing) so I can't "prove" when I received it, but they also can't prove when they sent it. They deviously made it difficult to identify the account the notice was regarding and after jumping through every obstacle they had put in front of me, within the terms they stated, they are now saying my request was received past the deadline when it was absolutely not? Have they positioned themselves to where I can't prove that, by the ambiguous "30 days after receiving the letter" without a hard set date defined?

    please help.

  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: "Opt Out" of Credit Card Change in Terms, Bank is Not Abiding by New Terms

    Quote Quoting whenitrainsitpours
    View Post
    My question involves a banking matter in the State of: California (Bank is HSBC Bank Nevada, N.A. (Carol Stream, IL)

    On December 2nd I received a "Notice of Change in Terms" sent via regular first class mail, it is not dated anywhere. It stated that they are implementing changes and my APR, late / over limit fees etc. are all significantly going to increase on both my current account balance and future purchases.

    The notice specifically states, "The new terms will apply to all new and existing balances unless you notify us in writing that you do not accept this change. We must receive your notice within 30 days of your receipt of this notice. You must include your name, address and account number and mail it to..."

    I have multiple accounts with this bank, they did not indicate which account this was for, by including the last 4 digits or anything of that nature. So I started calling every number I could find related to my accounts asking if they had sent this to me, finally I was able to confirm which account it was regarding and therefor able to send my opt out letter with the information they requested.

    I sent them the letter, with every bit of information just as requested. I sent it Priority with delivery confirmation to prove it was sent and retained a copy.

    Today I received a letter from them, acknowledging that they received my request to opt out, however it was received "past the deadline" and for this reason my account will stay open and subject to the new terms.

    This reply letter was dated, exactly 3 weeks from when I received the notice.

    What do I do from here?

    They sent me the first letter, in an unidentifiable manner, not dated or even post marked (pre-paid postage printing) so I can't "prove" when I received it, but they also can't prove when they sent it. They deviously made it difficult to identify the account the notice was regarding and after jumping through every obstacle they had put in front of me, within the terms they stated, they are now saying my request was received past the deadline when it was absolutely not? Have they positioned themselves to where I can't prove that, by the ambiguous "30 days after receiving the letter" without a hard set date defined?

    please help.

    I am sorry to hear of your problem. This is a common problem in this credit market. Banks are counting the days from when they mail these letters out to stop you from the OPT OUT system.

    The only thing I can tell you is that in mid 2010 there will be new laws inplace to limit the amount of interest a bank can charge you. Right now they can charge you up to 45% as a default rate even if you never defaulted.

    Your only other choice right now that I can see is to pay off this balance ASAP. Can you transfer this balance to a lower rate credit card?

    HSBC strikes again, no surprise here.

  3. #3
    Join Date
    Jan 2009
    Location
    Ohio
    Posts
    7

    Default Re: "Opt Out" of Credit Card Change in Terms, Bank is Not Abiding by New Terms

    i would write them back stating your concerns and that they cannot prove the date you received the letter and threaten litigation against them and keep a very good track record of every conversation and log the dates you receive any letters from them.. just in case

  4. #4
    Join Date
    Jun 2009
    Location
    Orange County, California
    Posts
    3

    Default Re: "Opt Out" of Credit Card Change in Terms, Bank is Not Abiding by New Terms

    Quote Quoting OhMy
    View Post
    I am sorry to hear of your problem. This is a common problem in this credit market. Banks are counting the days from when they mail these letters out to stop you from the OPT OUT system.

    The only thing I can tell you is that in mid 2010 there will be new laws inplace to limit the amount of interest a bank can charge you. Right now they can charge you up to 45% as a default rate even if you never defaulted.

    Your only other choice right now that I can see is to pay off this balance ASAP. Can you transfer this balance to a lower rate credit card?

    HSBC strikes again, no surprise here.
    Only other choice???

    I disagree with this assessment. You have several options other than the choice that OhMy lists (paying off the debt in its entirety as soon as possible).

    First of all, you need to provide more information. You did not indicate what type of loan this was. I assume that it was either a credit card loan or a line-of-credit loan. However, if it was a home equity line of credit (HELOC) loan or other type of loan, my advice would be different.

    First, you should talk to an attorney about whether HSBC violated any state or federal consumer protection laws. There are provisions of the federal Truth-In-Lending law that regulate what lenders, including credit card lenders, can and can't do. Furthermore, if Chase did not give you a fair opportunity to respond to its attempt to unilaterally (one-sidedly) change the terms of your contract with it, then it may have violated its contract with you. Locate the user agreement that you signed with Chase to see if it is required to allow you sufficient time to respond to any attempt to change the contract.

    Second, if Chase did not violate the terms of its contract with you and it did not violate any state or federal laws, then you have to look at whether or not you can afford to pay Chase according to the newly modified terms of the contract. If you cannot pay Chase's bill according to the new terms, you may have to consider other options. One option, as OhMy indicated, is to transfer the balance of your debt to Chase to another credit card. Be prepared to pay a high interest rate. Even though many credit cards advertise low introductory rates such as the famous "0% rate" that you see on many solicitations, these introductory rates disappear with no warning at all. The bank simply finds an old delinquency or some other justification and raises your rate to 29% or higher. It is an old trick but people fall for it every day.

    If you can't afford the new bill, another option is to file for bankruptcy. To explore this option, look for an attorney in your area that handles a steady volume of bankruptcy cases. Don't talk to any lawyer that does not do bankruptcies everyday. An inexperienced lawyer could botch your bankruptcy and leave you holding the bag.

    Another option for people who can't afford to pay their credit card bills is to consult with a law firm that negotiates on behalf of clients who have large, unsecured debts. I am the managing partner of a firm that negotiates with banks on behalf of consumers who have at least $5k in unsecured (usually credit card, but sometimes medical or judgment) debt. You may call us at (800) 466-7507 if you would like to find out if we can help you.

    Good luck!

  5. #5
    Join Date
    Jun 2009
    Posts
    2

    Default Re: "Opt Out" of Credit Card Change in Terms, Bank is Not Abiding by New Terms

    It appears Chase is doing this across the board. Raising rates to make additional cash. I had a conversation last week with an advisor and told them why should I be paying for others defaulting. His comment was you are not paying for others we are raising rates to remain profitable. Speaking out both sides of his mouth because of the defaults we will all be paying higher rates.

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