Consumer complaint received 2018-11-30
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: WA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Trouble using your card
Sub-issue: Can't use card to make purchases

Complaint:
XX/XX/18 : I applied for the HSBC Platinum Rewards MasterCard and received an email response that they would review the application and respond within 7-10 days if they needed addition information. 

XX/XX/18 : I received an email from HSBC asking me to send in proof of my address in the form of a tuition bill, utility bill, or lease agreement and SSA benefits letter dated within 60 days. HSBC provided a link in the email to upload the documentation. I clicked the link and uploaded a copy of my utility bill which had the address that matched the address I put on my application. 

XX/XX/18 : I called HSBC to check the status of the application, was told by the representative that I needed to submit the documentation they requested. I told her I did, she put me on hold, then came back and said she did see that I submitted the utility bill, and I then received an email that I was approved for the HSBC Platinum Rewards MasterCard and that I would be receiving my card within 7-10 business days. 

XX/XX/18 : I received the HSBC Platinum Rewards MasterCard. I followed the link provided on a sticker on the front of the card to activate the card online. I followed the activation procedure and successfully activated the card. I then attempted to add the card as a form of payment for a monthly auto-billing and it was declined. I called the customer service phone number listed on the back of the card and after 2 different calls in which I was on hold for over 40 minutes, I finally reached an agent who looked into my account and told me that my account was blocked and the only department within the institution that could remove the block was closed and that I needed to call back between XXXX and XXXX EST the next day. 

XX/XX/18 : I made 2 different calls starting at XXXX EST to HSBC 's credit card customer service department. After spending just over 2 hours total time on hold, I got through to a representative who then transferred me to the department that could remove the block, which turns out to be their " Security Team ''. I was told by a representative of the Security Team that they could not verify that I own the phone number that I put on my original application and that was associated with my account, even though I was calling them from said phone number and they could see that. The representative said they would not remove the block until they could verify my phone number, and told me that the card had been blocked right after it was mailed out to me. I offered to email her a copy of my wireless phone bill to verify my phone number and the representative told me that that was unacceptable as proof of my phone number and that the bank would, " conduct its own investigation '' to verify my phone number and that this could take up to 24-48 business hours, or up to 6 business days. I told this woman that this situation was absolutely outrageous. That I had never even heard of a bank blocking a new card before the customer ever even received the card or had the chance to activate it, and then I asked her to please close the account. She said she would not close it because she could not verify my phone number. 

Following this conversation, I XXXX to @ HSBC_US about the situation and was told to email them at the provided customer service email address, which I promptly did. A couple of hours later, I received a phone call from an HSBC representative. I described the situation and she said she could verify my identity by me generating a security code through the HSBC mobile app on my phone and then logging into online banking on the computer with said code. I did as she requested, she verified this, and said she could remove the block. After being placed on hold a few times, she came back to tell me that she needed to contact the same Security Team to ask them to complete the removal of the block. After placing me on hold a couple more times, she said the hold time was long and asked if she could call me back. I said she could and about an hour later, I received a call back from her. She told me that because the Security Team originally said they needed to conduct their own investigation into my phone number that the block could not be entirely removed and that a representative from the Security team would absolutely be contacting me to finish the block removal process within 24-48 hours. 

XX/XX/18 : I decide to conduct some research into the HSBC Platinum Rewards MasterCard only to discover that a number of other people have experienced the same exact problem as I have. One individual had their card blocked right after it was sent out only to call in and be given the same exact excuse about their phone number not being able to be verified and this person has had the block on their account for almost 2 months now. There are a number of other individuals who have had the same exact problem and have been given the same exact excuse. I have come to find out that HSBC requires you to use the card within the first 3 months to trigger their 12 month 0 % interest promotion. I have come to the conclusion that it appears that HSBC is blocking new cards as they are sent out, and will not remove the block in order to prevent cardholders from using the card within the first 3 months in order to trigger the 0 % interest promotion. Essentially, they appear to be running a scam regarding the 0 % interest promotion in order to entice people to apply for the card, and once they are actually approved, HSBC then promptly blocks the card after its sent out and refuses to remove the block. This, in my opinion, and the opinion of a number of other cardholders, is fraud being conducted by HSBC and is causing undue harm to creditworthy individuals who can verify they own their phone numbers, yet HSBC will not accept proof of their phone number ownership from the customer. 

XX/XX/18 : It is now 96 hours after I was told I would receive a call back from the Security Team within 24-48 to complete the removal of the block on my card, and I still have received no such call and there is still a block on my card. I am now in possession of a card that was issued over 2 weeks ago, had a block placed on it while in transit to me, and that have not ever been able to use. The account showed up on my credit report about a week ago, and the new account along with the inquiry to open the account has dropped my credit score 41 points, and this is because of a credit card that HSBC refuses to close, and I still can not use. 

I would implore the CFPB to investigate this apparent HSBC Platinum Rewards MasterCard 0 % interest scam in which HSBC is approving customers for the card, then blocking the card when it is sent out, not allowing the customer to prove ownership of their phone number, and all in an apparent effort to keep the card blocked for the first 3 months the account is open in order to prevent the cardholder from using it and triggering access to the 12 month 0 % interest promotion. I am one of dozens, and possibly hundreds, if not thousands of new customers to be a victim of this apparent HSBC Platinum Rewards MasterCard scam, and I sincerely hope that other US applicants do not fall for this scam and get defrauded by HSBC as I, and many others, apparently have. The bank refuses to close my account per my request, and once again, I am left in possession of an HSBC Platinum Rewards MasterCard that I can not use and that has caused a level of damage to my credit report that will take months to recover from.

Company response to consumer: Closed with explanation