HSBC Watch News Release Forum Index
Forum Name: - Best Buy
Topic Title: Best Buy pmt mailed 5 July, posted 30 July
Mon Aug 01, 2005 9:34 pm
I have had a Best Buy account for at least 5 years, I have not experienced any issues until today. However, what happened today / this month is truly unbelievable.
I had a large payment due on 7/26/05 to avoid almost $600 in deferred finance charges. I mailed my payment to Best Buy on Tuesday July 5th along with payments to 5 other creditors / utilities. Like every other month I mailed the payment and never thought about it again. Until today when I received my August statement showed a $35 late charge on 7/18 and no record of receiving my payment. I immediately checked my on-line bank account and realized that the check hasn't cleared yet. I then called Retail Services and the automated system stated that the payment was credited on 7/30. Clearly Retail Services is playing games. Some facts/thoughts:
1. The payments to the other creditors / utilities were all received and cashed on or before 7/15/05.
2. I find it very interesting that my payment shows posted at Retail Services on the 30th of the month just in time so they don't report a 30 day late on me, but 4 days after my promotional period expired meaning a charge of $566 in deferred interest to me.
3. Of course the Customer Service agent said they credit payments the same day received, my point mail rarely gets lost, but if it does it's lost not delivered 25 days later in time to be credited just before the end of the month and after the 7/26 promo expiration date.
4. I have never had a late payment on any credit account; I have a FICO score of well over 700. I don't make mistakes. Further, I work for a mortgage lender and understand how payments should be processed.
5. This statement arrived in the mail today exactly 8 days after the statement date. The envelop had not postmark to show when it was mailed. I live in a suburb of Dallas and mail delivery is not an issue. Interesting that the statement was delayed this month until it was too late for me to call put a stop payment on the check and pay the balance via credit card ahead of the 7/26 promo expiration date.
I plan to make a very big deal of this and will talk to Attorney's about another class action. I'll use your contact info and call the CEO tomorrow. Any further advice is appreciated.
Thu Aug 04, 2005 5:37 am
The most interesting thing about the Vision software system used by Household International (HSBC) is that its neural network components now promise benefits that even its developers didn't foresee. This is Vision's lasting value: As it learns, it helps the company make smarter decisions about Household customers.
For instance, say a credit card holder calls, irate about a late fee. He's not a profitable customer for the company: He carries a single card with little or no balance and has spurned Household offers for credit insurance products and equity loans. Why should the Household service rep cancel the late fee? Vision knows why. The system "takes into consideration the potential lifetime value of the customer," Harvey says.
Turns out this customer took out a school loan six years ago and a small auto finance deal for a used car three years ago from another company. His modest income has gone up significantly two years running. Considering these variables, Vision can recognize this late fee as a first offense by a recent college graduate who handles his finances well and may be in the market for significant new loans in the next year. Vision authorizes the service rep to waive the fee. Then the system can prompt the rep with suggestive selling for this now-happy customer—does he know that Household can pay off that old car loan and offer attractive terms on a loan for a newer vehicle?
Tue Sep 27, 2005 2:03 pm
The best bet for avoiding payment posting troubles is to utilize an ACH (automated clearinghouse) based electronic payment service, as these payments are handled by the Federal Reserve and cannot be delayed by manual processing that plagues check-based payments. Beware, however, that not all bill payment services provided by banks are ACH-based, so beware. Your best bet is one I have found is exclusively
Checkfree has a free service available at[url]https://mycheckfree.com/br/wps?sp=10001&rq=bfbl[/url] that has worked great for me. I use Checkfrees service over my bank's bill pay service because the payments post the next day, rather than a week or longer after making the payment. There are a limited number of merchants, but all who are listed will provide rapid posting of your payments.
We monitor customer trends for possible violations of Regulation Z and other possible illegal actions.