HSBC credit card statement walkthrough

Transcription

1 HSBC credit card statement walkthrough A financial capability resource Walking through an HSBC credit card statement

2 This resource has been produced as part of Citizens Advice Financial Skills for Life Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, Citizens Advice assumes no responsibility. The user of the information agrees that the information is subject to change without notice. To the extent permitted by law, Citizens Advice excludes all liability for any claim, loss, demands or damages of any kind whatsoever (whether such claims, loss, demands or damages were foreseeable, known or otherwise) arising out of or in connection with the drafting, accuracy and/or its interpretation, including without limitation, indirect or consequential loss or damage and whether arising in tort (including negligence), contract or otherwise. Copyright 215 Citizens Advice All rights reserved. Any reproduction of part or all of the contents in any form is prohibited except with the express written permission of Citizens Advice. Citizens Advice is an operating name of the ational Association of Citizens Advice Bureaux, Charity registration number 27957, VAT number , Company Limited by Guarantee, Registered number England. Registered office: Citizens Advice, 3 rd Floor orth, 2 Aldersgate Street, London, EC1A 4HD. 217 Citizens Advice HSBC credit card statement walkthrough/dec17/v1

3 Introduction to a Walkthrough resource This walkthrough is to provide a resource that allows advisers to discuss a particular bill or contract with a client, using a real-world example provided for that specific purpose. Advisers are welcome to provide tailored information to the client at their own discretion, and are recommended to attend our separate training course integrating financial capability into advice. How to use this Walkthrough The walkthrough consists of a sample HSBC credit card statement taken from a real source and with advisers notes provided. Advisers can provide the full statement to their client attached at the end of this document and then discuss it with them in as much depth as they need. otes of points to discuss are highlighted in the adviser s notes. Your clients statement doesn t look like this one? Don t worry, there s nothing wrong with their statement or this walkthrough. Banks occasionally change the structure and layout of their statements. ot only that, they often do this in phases so that at any given time - customers in some parts of the country might have statements that look different to the statements for customers in other parts of the country. If your clients statement looks different to this one, you can still talk through the main points of it with them. Trainers are encouraged to feedback to the Financial Skills for Life team with any feedback about training materials or resources. If you have any comments, please contact: financial.skills@citizensadvice.org.uk 217 Citizens Advice HSBC credit card statement walkthrough/dec17/v1

4 HSBC credit card statement Walkthrough Page One HSBC put their logo here. HSBC keep their general contact details in this corner. The type of credit card is also stated here: in this case, it s a VISA card. This is where the clients name and address is. This is some legal text outlining why it s important to make payments on the balance, and the way different payments that are made on the card may accrue different levels of interest, and may be paid off differently. As well as that, it also states that sticking to minimum payments only will make paying off the balance take a lot longer. This is a summary of all the transactions on the card for the statement period: it includes the APR, all credits and debits, and the next minimum payment amount and due date. Here is the essence of the statement: the dates, the types of payments, the reasons for them, and the amounts, with a running total on the right. otice the payment towards the card balance on the 21 st July, and also the card number stated by the client name: keep this secure! 217 Citizens Advice HSBC credit card statement walkthrough/dec17/v1

5 HSBC credit card statement Walkthrough Page Two This page is full of various small print, as well terms and conditions. It can seem quite daunting, but unless the client has a specific need to go through it they should not let it worry them. Advisers can always go online to find more information to expand this if they wish. 217 Citizens Advice HSBC credit card statement walkthrough/dec17/v1

6 HSBC credit card statement Walkthrough Page Three HSBC put their logo here. Here is the clients card number again. Remember: keep this safe! The statement continues here: the dates, the types of payments, the reasons for them, and the amounts, with a running total on the right. As the card was paid off early on in the statement, there is no interest due yet: Thomas Sample is clearly on top of their card! However, if they only make a minimum payment next month, then the interest is laid out here. This Giro slip can be used to make a payment off the credit card using cash, either over the bank or Post Office counter. Some clients may prefer this to doing it online or over the phone. 217 Citizens Advice HSBC credit card statement walkthrough/dec17/v1

7 Further Information This walkthrough is designed to be used as a standalone resource, but was developed alongside the financial capability resource library found here. Advisers that want to cover more activities with their clients will find more activities here to discuss and go through, with factsheets and action plans included. Further resources and information can be found at: The Citizens Advice Consumer Service, providing clear and practical consumer advice over the phone and . They can be contacted here, or by calling ( for welsh language speakers) between 9-5pm Mon-Fri. Other resources and signposts The FCA (Financial Conduct Authority) is the conduct regulator for 56, financial services firms and financial markets in the UK and the prudential regulator for over 18, of those firms. They can be found here. The Financial Ombudsman (FOS) can be found here. They were set up by Parliament to resolve individual complaints between financial businesses and their customers. They can look into problems involving most types of money matters - from payday loans to pensions, pet insurance to PPI. If they decide someone's been treated unfairly, we have legal powers to put things right. They can be contacted on or Remember The Financial Services Compensation Scheme (FSCS) covers business conducted by firms authorised by the FCA and the Prudential Regulation Authority (PRA). FSCS protects consumers when financial services firms fail. It s the compensation scheme for customers of UK authorised financial services firms, and can be found here. Finally Don t forget to check our website for further clear practical guidance on common financial products for clients. 217 Citizens Advice HSBC credit card statement walkthrough/dec17/v1

8 HSBC Your Visa Card statement Contact tel From Overseas tel Lost and Stolen Cards (24 hrs) From Overseas tel (24 hrs) Mr Thomas Sample 123 Sample Street, Anytown AT1 B23 Text Phone used by deaf or speech impaired customers Credit Limit APR Previous Balance Debits Account Summary 9,, 2.9% :97.73 Credits Minimum payment Payment to be credited by Sep 17 If you do not pay off the full amount outstanding, we will allocate your payment to the outstanding balance in a specific order, which is set out on the reverse of this statement. The way in which payments are allocated can make a significant difference to the a mount of interest you will pay until the balance is cleared completely. Minimum payments If you make only the minimum payment each month, it will take you longer and cost you more to clear your balance. Statement Date 21 August 217 Card number Sheet number 1of 2 Mr Thomas Sample Jul 17 2 Jul 17 SMILES DETIST Jul Jul 17 PAYMET - THAK YOU 758.5CR 24 Jul Jul 17 TESCO STORES 613 AYTOW Jul Jul 17 KFC LTD AYTOW Jul Jul 17 SAISBURYS S/MKTS AYTOW CETRAL Jul Jul 17 BOOTS 323 AYTOW Jul Jul 17 PP* BURRITO AYTOW Jul Jul 17 SAISBURYS S/MKTS AYTOW CETRAL Jul Jul 17 GATEKEEPER AYTOW Jul Jul 17 SAISBURYS S/MKTS AYTOW Jul Jul 17 IRIE SHACK AYTOW Jul 17 3 Jul 17 TESCO STORES 613 AYTOW Jul 17 3 Jul 17 PLAYSTATIOETWORK ITERET Aug Jul 17 SA ISBURYS SMKTS AYTOW CETRAL Aug Jul 17 PRIMARK 683 AYTOW Aug 17 1 Aug 17 AMAZO.CO.UK AMAZO.CO.UK LU Aug 17 1 Aug 17 Amazon UK Marketplace LU Aug 17 1 Aug 17 OSTALGIA COMICS BIRMIGHAM Aug 17 1 Aug 17 FORBIDDE PLAET BIRMIGHAM 17.98

9 Summary Box The information contained in this table summarises key product features and is not intended to replace any terms and conditions. Interest free period Interest charging information Allocation of payments Up to 56 days for purchases when you pay your balance in full every month by the due date. You will not pay interest on purchases if you pay your balance in full and on time each month. Otherwise the period over which interest is charged will be as follows; Minimum If vou entered into A. 2.5% of the full amount you owe as monthly your agreement with shown on your monthly statement (including repayment us before 23 March interest and charges) 211 the minimum 8. 5 payment will be the higher of: Credit Limit Fees If you entered into A. The sum of (a) interest for the period from your agreement with the last statement, (b) any default charges, us from 23 March and (c) 1% of the full amount you owe as 211 onwards, the shown on your monthly statement (not minimum payment including interest and default charges) will be the higher of: B. 2.5% of the full amount you owe as shown on your monthly statement (including interest and charges) C. 5 Minimum credit limit E5, maximum credit limit subject to status o Annual Fee Charges Cash fee 2.99% of the cash advance or cash related payment. minimum 3 Balance 1.4% of each balance transferred within 6 days of transfers account opening, minimum 5 2.9% of the balance transferred after 6 days from account opening, minimum 5 Foreign usage Payment Rates can be found at Scheme global/currencyconversion/index.html or Exchange rate: king-payments/ Dependent upon the type of transaction you undertake one or more of the following charges will apply: on-sterling transaction fee Cash fee 2.99% of the amount of the sterling transaction value 2.99% of the cash advance or cash related payment, minimum 3 Default For paying late 12 charges For going over your credit limit 12 How to pay Purchases. balance From Until transfers. cash Date debited to your Paid in full advances and cash account related pavments If the amount you pay in a month is less than the full amount you owe. we will apply the amount you pay in the following order: (a) any unpaid arrears or amounts over the credit limit; (b) the amount you owe us and shown in your statement; {c) any transactions. interest or charges not yet included in a statement. We will apply your payment first to amounts on your account which we charge at the highest interest rate followed by amounts we charged at lower rates. In each case, interest and charges are paid off first. If some amounts are charged at the same interest rate, we will apply your payment to the o!dest amounts first. For payments which are returned unpaid 5 For enforcing repayment, including legal and tracing costs Our reasonable costs How interest is charged On purchases We don't charge interest on purchases if you pay your balance in full by the due date (and you've also paid the previous month's balance in full by that due date). If you do not pay the balance i n full, we charge interest on al! transactions from the date they were added to the account (not just on the unpaid balance). On cash transactions Cash transactions include cash advances, balance transfers, Direct Debits. standing orders, travellers cheques, foreign currency, gambling transactions and any cash substitutes. Interest will be charged from the date of each cash transaction, even if you pay the balance i n full each month, until the cash transaction (includ1ng interest) is paid in full. Estimated interest This is an estimate of the interest you'll have to pay next month. It assumes: 1) you only pay the minimum due, 2) you pav on the due date, 3) you have no more balance transfers or cash advances before your next statement, 4) you don't change your statement date. and 5) your interest rate doesn't change. Remember - If you make only the minimum payment each month it will take you longer and cost you more to clear vour balance. Daily interest Interest is charged on a daily basis, so the amount of interest payable will increase the longer payment is delayed, even if payment is made before the due date. Payments will take effect when they are actually received by us as cleared funds. Recurring transaction A recurring transaction, sometimes called a continuous payment a1jthority, is a series of payments collected with your agreement from your card by a retailer or supplier (for example, insurance cover). This i s an agreement between you and the retailer. The Direct Debit Guarantee does not cover these transactions. If you wish to cancel a recurring transaction, you can do this with the retailer or with us. If you contact the retailer you will also be able to deal with the agreement you have with them. This should ensure the retailer will not collect any further payments. If they do we will treat these as unauthorised. If we miss any of the cancelled transactions, please contact us. How much to pay and when You may pay any amount from the minimum payment to the full balance on your statement. Please ensure your payment reaches us by the due date, shown overleaf, or a charge may be made in accordance with your terms & conditions. Any amount overdue or overlimit must be paid immediately. All payments will only take effect when they are actually received by us as cleared funds. If you are experiencing financial difficulties and cannot meet your repayments, please call us on Checking your statement Please keep all vouchers and till receipts when you use your card(s) and check them against your monthly statement. The name and place description shown on your statement may not match what is on the voucher, so please remember items you've ordered by post, phone or the internet. If there 's a transaction on your statement which vou believe is incorrect. please notify us within 13 months of your statement date by calling Dispute resolution If you have a problem with your agreement. please try to resolve it with us first. If you are not happy with the way in which we handled your complaint or the result, you may be able to complain to the Financial Ombudsman Service. If you do not take up your problem with us first you will not be entitled to complain to the Ombudsman. We can provide details of how to contact the Ombudsman. *How to contact HSBC Bank pie Log on at: or call Customer Services: (Textphone ) or from overseas Lines open 8am - 1Opm 7 days a week (Except Christmas Day, Boxing Day and ew Years Day). Lost and Stolen or from overseas Lines open 24 hours a day, 7 days a week. Remember, if payments are made using the wrong card details. sort code or account number, they may be delayed or not applied. 'Working days' are any weekday other than Bank Holidays. All Customers Direct Debit Standing Order/ bill payment/ overseas payment HSBC Bank branches Post Contact Us* and select to pay the full, fixed or minimum amount due. Your payment will be automatically deducted from your current account by your due date each month. If the minimum payment due is more than your f ixed amount, we will claim the minimum payment. If your statement balance is lower than your fixed amount we will only claim the balance on your statement. Pay a fixed amount to your HSBC Bank Credit Card using the following information: Sort Code and Account umber (choose applicable numbers from table below) Reference: your 16 digit credit card number Type of Card Visa: HSBC and Welsh MasterCard: HSBC and Welsh Card no. begins Quote sortcode Quote account no If paying from overseas quote sortcode - ace no. for the corresponding Card no. IBA umber (International Bank Account umberl - Europe: GB15MIDL GB38MIDL Outside Europe: MIDLGB Gold Visa By cash or cheque: Please make cheques payable to HSBC Bank pie followed by your 16 digit Credit Card number. A charge rnay apply to payments made at banks other than HSBC Bank. Please make cheques pavable to HSBC Bank pie followed by vour 16 digit Credit Card number and send it to: HSBC Bank plc, Card Services. PO Box 728, Camberley GU15 3WU. Do not send cash or post dated cheques. Interest Calculations and available credit Payments credited the same working day. Payments from other banks can take up to three working days to reach us. Customers making a payment from a bank or building society that is participating in the Faster Payments Service will in normal circumstances be able to pay to your Credit Card and have the available credit updated within 2 hour s. All payments are credited for interest calculations the same working day. Cash payments credited tor interest calculations and available credit updated the same working day and for cheques available credit updated within 4 working days. Please allow at least 7 working days from posting for your account to be credited. Available credit will be updated within 4 working days of receipt. I (.

10 HSBC Your Visa Card statement Statement Date 21 August 217 Card number Sheet number 2 of 2 3 Aug 17 2 Aug 17 SAISBURYS S/MKTS AYTOW Aug 17 2 Aug 17 Amazon UK Marketplace LU Aug 17 4 Aug 17 SAISBURYS S/MKTS AYTOW CETRAL Aug 17 5 Aug 17 ARRIVA TRAIS WALE AYTOW Aug 17 5 Aug 17 TORTILLA CARDIFF AYTOW Aug 17 6 Aug 17 TESCO STORES 636 AYTOW Aug 17 6 Aug 17 VIVA BRAZIL CARDIFF AYTOW Aug 17 9 Aug 17 SAISBURYS S/MKTS AYTOW CETRAL Aug 17 1 Aug 17 SAISBURYS S/MKTS AYTOW CETRAL Aug Aug 17 WILKO RETAIL LIMIT AYTOW Aug Aug 17 SAISBURYS S/MKTS AYTOW CETRAL 4.55 O'l 16 Aug Aug 17 DOMIO'S AYTOW 4.99 Ol O'l 16 Aug Aug 17 ETFLIX.COM L 5.99 lt l C') 17 Aug Aug 17 SAISBURYS S/MKTS AYTOW Ol 17 Aug Aug 17 OSTALGIA COMICS BIRMIGHAM Lr; 18 Aug Aug 17 Amazon UK Marketplace LU 2.99 c;:; 19 Aug Aug 17 DOMIO' S AYTOW Aug Aug 17 Amazon UK Marketplace LU Aug Aug 17 Amazon UK Marketplace LU 5.9 "::t 21 Aug Aug 17 FIVE GUYS CARDIFF AYTOW 33.2 C'S 21 Aug 17 2 Aug 17 TESCO STORES 613 AYTOW Aug 17 2 Aug 17 AMAZO.CO.UK AMAZO.CO.UK LU 14.9 '::ti ( O ITEREST CHARGED O THIS STATEMET Estimated interest - next month DETACH HERE AD KEEP STATEMET Receiving Cashier ' s stamp and initials DD Fee Items Bank Giro Credit Cheques should be made payable to: HSBC Bank pie Please enter amount in total box Pa id in by: Date: HSBC Bank plc HO Collection Account Please do not write below this line or fold this counterfoil otes Coins Total Cash Cheques > <> < < < < 73 x