Question about HSBC & Solo Cards.

[chrisdodd]

Hello Everyone!

I have some questions which have been troubling me for a while now, and I was wondering if any of you lot can shed some light onto it.

When I turned 18 HSBC sent me a shiny new Mastercard (which I was stupid enough to apply for), they upgraded my Solo card to a proper adult Switch Card and it took me about 6 months to get into a situation where HSBC were begging me to visit my local branch to sort out the debt I'd built up.

The way they'd worked my credit card was so the bill was payed by direct debit, therefore, my credit card bill was always payed on time, yet I was VERY overdrawn.

So I visited, they took away my shiny Mastercard, and payed off the rest of the bill along with my overdraft with a shiny new consolodation loan... with 5 years to pay it off.

They also took away my adult switch card, and replaced it with a sad Solo Card, they told me Mr Solo would keep me safe from getting into further debt as it will talk to the bank and ask permission before it spends any money.

Also they stated that I wasn't allowed to get overdrawn anymore, and had set up my account to prevent me from doing so.

Sadly, neither of there were the case, my card worked regardless of how much money I had in the bank.... which I have to say has left me confused and charged quite a bit.

Everything I've ever read about the solo card promises protection from getting into debt.

Solo was launched on 1st July 1997 by the Switch Card Scheme, then one of the world's leading domestic payment systems. Like its sister card Switch - which has now changed its name to Maestro, Solo is a fully electronic debit card and is just as convenient to use to pay for everyday goods & services. However, Solo offers a different level of financial control and reassurance: every transaction is authorised, so cardholders can only spend what is available in their account. This financial control with Switch-style convenience has brought sophisticated personal banking to new groups of customers.

- http://www.solocard.co.uk/about.asp

Now I just assumed that I was being thick, and obviously there was something somewhere that I'd missed that would have explained the whole story to me and would make everything ok.

However, last year I opened an account with Natwest (- I'd gotten far too p*ssed off / concerned about how HSBC deal with stuff.)

I curiously asked the nice lady about Solo Cards (as I was getting a brand new one with my Natwest Account) and she seemed shocked at what I was telling her about HSBC and their Solo Card.

- She did point out that on occassion a transaction will be autherised, but that the bank will take responsibility for that and to inform them streight away if this happens.

So after this conversation with the nice Natwest Lady, I'd popped into my HSBC brance, the ask them what was going on. Their only response was "We have a different agreement with the card issuer."

So basically, if anyone could explain to me how this should work, what the difference between switch and solo is - as with HSBC there appears to be NO difference, and any other information that could help end my confusion I would be most greatful!

Thanks to anyone who reads this, and further thanks for anyone who replies! - I should hopefully get my charges back soon anyways, I'm just about to make a DPA request for a statement of charges!

Chris

[overcharged_consumer]

Wow, small font!

 

Hi Chris,

 

Another difference is that Solo doesn't incorporate a cheque guarantee card.

 

Solo cards are indeed authorised on every transaction hence why some retailers don't accept it - because they don't have instant authorisation - they're systems log the card details and request payment in a bulk batch at the end of the day.

 

What I suspect has happened is that transactions have been authorised by HSBC even though you have no available funds. Why? Who knows but one could be sceptical about it - to make more money from you.

 

Either way you sound a bit like me - terrible at managing personal finances. All to frequently in the past I have just spent and spent and spent until I wasn't allowed to spend. It's only recently that I've learned to check my balance prior to spending if I'm not sure.

 

I assume you're going to raise a claim for the charges you've incurred in the past?

 

OC

[chrisdodd]

Either way you sound a bit like me - terrible at managing personal finances. All to frequently in the past I have just spent and spent and spent until I wasn't allowed to spend. It's only recently that I've learned to check my balance prior to spending if I'm not sure.

 

Checking my balance depresses me too much, it's vary rarely that I get a pleasent surprise through checking my balance!

 

- The small font was to make it seem like I wrote less...

 

And I'm definately going to try to claim back all the charges!

 

thanks for your reply

 

Chris

[overcharged_consumer]

Checking my balance depresses me too much, it's vary rarely that I get a pleasent surprise through checking my balance!

 

- The small font was to make it seem like I wrote less...

 

And I'm definately going to try to claim back all the charges!

 

thanks for your reply

 

Chris

 

You gotta grab your finances by the balls and deal with them otherwise you'll never get them back on track.

 

I'm trying hard to sort mine out but I've got more going out than I have coming in at the moment because of the charges that are being applied!

 

Keep up updated as you progress.

 

OC

[mechs]

 

- The small font was to make it seem like I wrote less...

 

 

that cracked me up!

[bram stoker]

This worries me, because my 13 year old daughter has a Natwest solo card. I might just run a little test with her over the weekend to find out, and show her how nasty and what liars banks are. A little lesson in controlling her own finances.

 

I'll let you know how we go on.

[LKJ]

I was told by HSBC the same aeons ago- i.e. that Solo authorised every transaction. (This was when they politley suggested I might need one, seeing as I had run up a fair debt with my Switch card, being young and irresponsible with it) I thought therefore that I couldn't go over my limit, and not being particularly good at maths I thought that if I was able to use my card I would have money in my account. If it was declined, I'd spent everything in there. Seemed logical to me.

 

This worked really well for a while (about 3 years) and I was pretty much on top of my finances. Didn't get charged much, when I did it was because I still couldn't add up and the odd direct debit would take me over my overdraft limit. But nothing scary that I was struggling with. I did also make a concerted effort to make sure I knew my balance on a daily basis though and this may have helped.

 

Until about 3 years ago, that is, when I started getting really big charges again for using my card and exceeding my overdraft limit- I called to query my charges and their solo policy and was told that Solo had never pre-authorised transactions, I even asked whether they used to and things had just changed but the answer was no, it had always been that way. The woman was quite unfriendly and I was left thinking I was really stupid and/or mad- I must have completely imagined the earlier arrangement, and feeling really embarrassed by the whole thing since I had been managing my finances so much better than before.

 

Until I saw your post....

 

They are really a nasty piece of work sometimes. I don't know whether to be glad that I was right in the first place or angry that they made me feel so silly! Either way, me and my husband have just issued two separate "Letter Before Action" to HSBC, in pursuit of just over £3k all together from our joint and individual accounts. If I can claim it back it will make me feel so much better, I will have the moral highground and I bet the view from there is great!

[barracad]

I have had this same argument with banks myself.

 

Their argument was that they will only authorise a transaction if there are funds available, but although the retailer gets instant authorisation it can take up to six months before the retailer actually 'completes' the transaction and requests the money from the bank.

 

So for example, you go shopping on a Saturday, think you have around £300 in your account, go and spend £100 in XYZ shop. On Sunday you check your balance, £200 available, and draw it out.

 

What you didn't realise was that you only actually had £200 in your account in the first place. Come Monday, XYZ shop process the transaction and ask your bank for the £100. Your bank can't say no as they've already authorised it, so you are now £100 overdrawn.

[chrisdodd]

Hey guys, thanks for all of the replies.

 

LKJ... I had the same "what planet are you from?" response from HSBC when I quizzed them about it.

 

The main issue I have is that Solo cards can be issued to people under the age of 18, I'm pretty sure banks wouldn't let an under 18 go into over draft due to solo purchases being delayed because they would be unable to legally claim the money back (as far as i know!).

 

Also, since I joined Natwest in September 04, I've had a Solo card with them and NEVER had the same issue with my Solo Card there, so this seems it really is just an issue with HSBC customers over the age of 18 - which can't be right at all... the same features should be available for a product regardless of the age of the person using it?! - Right?!

[Dydie]

Hi Everyone

 

I had massive arguments with HSBC over the Solo cards a few years ago and I ended up going to the banking ombudsman .... they were brilliant and HSBC soon buckled and refunded all the charges which had accumalated as a result of the Solo not doing what it said on the tin!!!

 

The bank themselves told me that as has already been said it can take months for a retailer to process the transaction even though it is authorised ... however another thing to know about is that every shop you go in to has their own "shop floor limit" so for example if you go into Tesco they have a floor limit of £60.00 if your transaction is less than this amount it WILL authorise without going through the computer system. So you do not have to have the money available which = charges!

 

but hey .... we dont worry about charges anymore ... do we

 

Dydie xxx