I wrote a post back in November regarding an anomalous interest finance charge ($100) I got hit with midway through my 12 month 0% APR on my HSBC Credit Card.  It has now been almost three months and I have yet to adequately resolve this issue so I’m using the nuclear option and closing ALL my HSBC accounts.   I won’t be doing business with this bank anymore:  No mortgages, No Investment accounts, No High Yield Savings, No Checking, No Nothing.

Here are some of the key problems:

1. A bank should never spontaneously charge $100 in interest on a 12 month 0% APR.   Customer Service itself acknowledged that this was a “glitch” in their system and IMHO, banks shouldn’t have “glitches” like this that cost consumers hundred(s) of dollars.

2. Customer Service consists of a phone bank somewhere in India or Bangalore or somewhere way over there.  This itself isn’t an issue  but hearing nothing but static on the line half the time is ridiculous.  If you’re opening a call center in India, don’t try to save a couple of nickels by using Voice Over IP – shell out for a decent phone system and a decent connection.

3. Speaking of overseas call centers….the people there are 100% incapable of solving any issue.  The “customer service” reps are nothing more than glorified operators that answer the phone, say something to placate the customer, and solve nothing.  What exactly is the point of having this “service” center?
4. If repeated phone calls, e-mails, and ultimately certified letters are needed to resolve customer service issues then this isn’t a bank I want to do business with on any level.

5. I was flipping through the Sunday paper and saw ads from Chase, Citibank and a few other banks all now offering 5% high yield savings accounts and I’ve written about how Washington Mutual has been winning me over.   Hmmm…. local branches with local customer service, high yield savings, reward credit cards, local/free ATM  and much more; why do I need HSBC?

It’s pretty obvious now that these online high yield savings banks are all crashing and burning.  ING Direct has failed to keep up with other banks rates, HSBC can’t seem to handle customer service issues and other online banks are lowering their rates.   Call me crazy but I’m going local.