Complaint Review: GM Cardmember Services - HSBC Bank Nevada - Salinas California

We applied for the GM Extended Family Card due to their promise of 0% APR. Upon activating this card, the gentleman we spoke to offer to transfer our other credit card balances at 0%. We declined for the time being. When we received our 'Welcome Kit', we found 'convenience checks' and used one to pay off the balance of our other credit card, as it would have a 0%APR.

This weekend, I received my statement in the mail and noticed a $55.70 fee for a balance transfer. We called customer service were told that this charge is a 'one time' fee. I told her this was a scam and asked to speak to her supervisor. She told me 'she will only tell you the same thing I did' and did not transfer me to the supervisor.

After ending the call, I retrieved my current statement and 'terms and conditions'. After reading through the APR information, I found "other APR" information. Introductory Balance Transfer 0%...with a reference to 'see #2 below'.

#2 stated-The Introductory Balance Transfer APR applies to Balance Transfer Checks through the first 12 billing cycles.

There was NO mention of this 'one time' fee the woman told me about on the phone. Upon further scrutiny however, I did find information about a 3% charge for advances by Balance Transfers requested at the time of application by pone & Internet, if applicable, and on checks included in the Welcome Package. This information was located under CASH ADVANCE FEE.

Under this heading I found CASH ADVANCE FEE, LATE PAYMENT FEE, and OVERLIMIT FEE all in BOLD print. This Balance Transfer was obviously meant to go unnoticed by the consumer.

I immediately emailed GM Card Services stating this same information and requested a refund of their hidden fee.

Today, I received this email response:

____________________________

Please accept our apology for any inconvenience you may have experienced.

Our goal is to ensure that all contacts are handled in a courteous and professional manner. We value you as a customer and hope to be able to provide you with superior service in the future.

Our records indicate that the balance transfer that posted to your account on 04/27/07 is subject to an interest rate of 0% for 12 billing cycles from the

account open date with a one time cash transaction fee of 3% or a minimum of $10.00, whichever is greater or a maximum of $99.00. Therefore, cash fee finance charge in the amount of $55.70 was assessed.

Unfortunately, we are unable to comply with your request to remove the cash advance fee from your account. According to your Cardmember Agreement and

Disclosure Statement, you agree to pay a cash advance fee on the amount of each cash advance. Cash advances include all advances made by cash over the counter, through an ATM, by check or any other cash-like transactions which will be determined by us.

You are important to us and we appreciate your business.

______________________

"or any other cash-like transactions which will be determined by us".

So...they decide which transactions are cash-like?

I also informed them that I will be contacting my Attorney General, the BBB, and also informing my fellow GM co-workers about their scam.

Do not fall for their trap! DO NOT use their 0% convenience checks for balance transfers believing you will not be charged!

Cheryl

Burt, New York
U.S.A.

STOP! ..before you think about using the Better Business Bureau (BBB)... CLICK HERE to see how other consumers were victimized by the BBB's false or misleading information. Don't be fooled! It has been reported, when there are thousands of complaints and other investigations underway by authorities, the BBB has no choice but to finally give an UNsatisfactory rating to a BBB member business that is paying the BBB big membership fees every year. When a business is reported that is NOT a BBB member, BBB files WILL more likely show an UNsatisfactory rating, then reportedly shake down that company to become a member of the BBB. One positive thing about the BBB is, either way, if a business has an unsatisfactory rating with the BBB, you can be sure, the business is bad. But what about all those BBB member businesses that had complaints filed against them? Consumers never get to hear about them. What about the BBB advertising to the public? Is this a false and misleading perception they are giving about consumer confidence when dealing with a business? Click here to understand more of what consumers and business alike are saying about the BBB. You decide. ..Remember. The BBB membership is not earned, it's paid for!