Best Buy Stores and the HSBC Best Buy card

Many americans are glad credit card statements are easier to read. New credit card laws greatly diminished abuses by banks. One such offender was (is) HSBC and HSBC merchants.

HSBC is the third-largest issuer of private label credit cards in the United States, including cards for more than 70 active merchant relationships, including Best Buy, GM, Yamaha, Kawasaki, Neiman Marcus, Polaris and Saks Fifth Avenue.

Earlier this week, the Office of the Comptroller of the Currency (OCC) announced the recommencement of the comment period on Capital One Financial Corp.’s (NYSE:COF) proposed deal to acquire HSBC Holdings Plc’s (NYSE:HBC) U.S. credit-card business. This decision was taken following consumer and housing advocates’ opposition to the agreement.

After years of abuses against holders of Best Buy Stores credit cards, only new laws stopped the abuse. But today – in spite of HSBC’s desire to sell all of its credit card business – the Bestbuy.com website says this:

Offer valid only on BestBuy.com. On approved purchases on the Best Buy consumer credit cards offered by HSBC Bank Nevada, N.A. Certain rules apply to the allocation of payments and Interest Charges on your promotional purchase, if you make more than one purchase on your credit card. Call 1-888-367-4310 or review your cardholder agreement for info.

All APRs are variable, based on creditworthiness and accurate as of 11/01/2011. Reward Zone program Card: Standard APRs: 24.24% – 27.99%; Penalty APRs: 29.24% – 29.99%; Min. interest charge: $2; Reward Zone program MasterCard: Purchase and Balance Transfer APRs: 17.99% – 22.99%; balance transfer fee is the greater of $15 or 3% of the amount of each transfer; Cash APR: 25.99%; cash advance fee is the greater of $10 or 5% of the amount of each cash advance, cash advances via ATM or over the counter; or the greater of $20 or 5% of the amount of each cash advance for all other cash advances; Penalty APR: 29.99%; Foreign Transaction Fee: 3% of each transaction in US dollars; Min. interest charge: $1; Annual Fee: $59.

Fines, punishments, huge losses, threats by attorney’s general in most states, reports of abuse by employees, and other alleged crimes against Best Buy customers never stopped HSBC abuse.

Years ago I cautioned my children against a Best Buy card from HSBC. In a financial managemnt class for active duty military reports of HSBC and Best Buy financial abuse were reported by many servicemembers.

The bottom line is that HSBC and Best Buy still have a credit card agreement. Only new financial rules and regulations stopped most HSBC abuses, such as crediting payments one day late when payments were mailed ten days early, or released through online banking.