Random Ideas

As of 2/27/2009, HSBC chose to “reduce risk” by cutting credit limits across the board on an entire line of credit cards. They made this choice without any connection to the credit rating of the customers or their payment history. On top of that, they are not allowing any apeals to this punishing of their own customers. The reduction has been by as much as 90% in some cases.

This move is one that stinks of desperation. Considered along with increasing cuts in service and interest rates on accounts with them, and truly astounding layoffs, it makes me feel like I need to find a safer place for my accounts. Let’s face it, if they are willing to do something this stupid and revenue limiting, they must truly be close to the brink of disaster. Other cards have lowered limits and increased fees and rates on cards, but HSBC is the only one I have seen reduce a limit by 90% on a customer with a credit rating above 700 who had a spotless payment record and multiple accounts with the bank. Far be it from me to give financial advice, but I know I am looking for a bank that is not headed for the drink to put my accounts at.