HSBC extended payment holds

A client got one of those $300 HSBC credit cards I recently recommended to rebuild credit.

After receiving his first statement, he first paid $25 and then the remaining $224 so that he would pay the balance in full and not pay any interest.  Both payments were scheduled at the HSBC Orchard website.

The $224 payment cleared his bank account on 9/27/11.   Today he wanted to use his card and he found out that he had only $77 available and there was a $223 “pending charge.”

WHAT???  He hadn’t used the card since paying it in full.

He finally figured out that the pending charge was a HOLD on his payment.

Apparently they cleared $1.

I suppose there’s nothing he can do but wait.

I wonder what would happen if the account went over the limit due to those extensive holds.  Would they charge an over limit fee?

So be aware and don’t expect to be able to actually USE these cards.

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