The tag line for HSBC reads’The Worlds LOCAL Bank’I absolutely, completely and wholeheartedly agree with this. HSBC is the worlds - LOCALEST, CHEAPEST Bank.
Words such as **International Standards, Process Excellence, Customer Service and World class are alien and unknown to them.
*This is what happened which made me adopt this stance.:-
I applied for an HSBC credit card after their sales agent called me and was eagerly looking forward to receiveing it. I had to rather since their agent told me that I would get a GOLD credit card which has a limit range of 50K to 1.5L and that I would easily get somewhere around 1 Lakh Limit. Also the RATE OF INTEREST ON THE CARD WOULD BE 1.5%. And I jumped at this.
So I gave my documents and signed the dotted line. The verification happened and around 20 days later I got my card and the shock of my life.
I had been provided with a CLASSIC card and the limit was a mere 53K. And the finance charges rate was a whopping 3.5%. To say the least I was bitterly disappointed and called thier customer care. A lady picked up the phone and I told her that I want to cancel the card I had received 15 Minutes back. She asked me the reason and then transferred the call to her senior colleague. I listed the reasons to her also . Specifically -
The Gold to Classic deception
the pecuniary credit limit
and the rate of interest.
This lady was very sweet and very smart. She said that Mr. Bhatnagar it seems that their has been some miscommunication but it is not an issue. You please use the card and in six months we would revise the limit on the card. I think I was asked to use the card a couple of times.
Sweet solution but a very smart move I must say. The moment I would have used my card I would have been bound by the Card User Agreement and then would have paid the exhorbitant rate of interest. So I asked what about the rate of interest. Since this is not what was promised to me. Well she had no answer to that and agreed on the card cancellation.
I also asked her how the limit had been determined on the card. I was told that this was based on my income documents which said my income is around 186, 000/- .[Doston mein bahut garin hoon! Agli baar udhar dene se mana mat karna]. For the life of me I cant understand how and from where they got this figure provided that I had not given them any Income Documents. The documents submitted were a copy of my PAN card, My DL License copy and a copy of my other CC statement. HOW IN THE WORLD WERE THEY ABLE TO FIGURE OUT MY ANNUAL INCOME FROM THIS IS A MYSTERY THAT MYSELF AND I AM SURE THE INCOME TAX DEPARTMENT WOULD DIE TO KNOW ABOUT. Maybe they have some mystical ritual involving algorithmic procedures to arrive at this information.
Now the interesting point on the Rate of Interest is that it was verbal so I can do two-hoots about it. You cant until u get it in writing and you will never get it in writing.
The idea is simple. Hook the person. Let him have the card and make him use it. Once he/she uses it the person is bound and helpless. Tell you what it is very simple for these banks to get away with this.
The banking ombudsman rules in India Promulgated by the RBI seem too lax to me. You have to write to your bank and then wait for a month of non reply before you approach the ombudsman. Who has got so much of time? And with e-communications that all of us use this is long and delayed. So resultantly, these guys can easily do whatever they please before any action istaken. For information sake I am marking a copy to the ombudsman also.
Now the bank, for the sake of it has a complaint redressal system and whatmore they have four levels of it. The only good they can do is give you some sugar coated replies and not much.
CAN THEY JUSTIFY THE BEHAVIOUR OF THEIR SALES AGENT AND CAN THEY DELIVER ON THE PROMISE THEY MADE? No they cant because the moment I raised the subject of rate of interest they willingly agreed to cancel the card.
SO MY FRIENDS THE MORAL OF THE STORY IS THAT BEWARE THE NEXT TIME YOU ARE CONTACTED BY THE WORLDS LOCAL BANK. Regards Pranab