Urgent: HSBC Issued Me Live+ Credit Card Then Closed It Abruptly! What should be my further steps?

[devanshdalmia1]

I’ve been an HSBC customer for over a year with a Platinum LTF credit card (₹2 lakh limit). Recently, I applied for the HSBC Live+ card due to its cashback and lounge benefits. The card was issued with a ₹1.47 lakh limit.

After receiving the card, an address verification call was conducted. Since I work remotely, I provided my HR-provided office address, but it was marked as “not verified” without explanation. I wasn’t informed of any implications at the time.

I activated the card and made purchases totaling ₹32,000 (wedding shopping, flight bookings for Vietnam, groceries, and the joining fee). However, I later noticed the card was missing from my account. On contacting customer care, I learned it had been closed, with no reason provided. I only found an email in my spam folder stating HSBC was “unable to commence the card relationship.”

Questions:

1. Can the card relationship be restarted? I value its benefits.
2. Why was it closed, and is there any recourse?
3. The joining fee was charged; do I still have to pay it?
4. Can I escalate this to the RBI Ombudsman for resolution or compensation?
5. Is visiting the HSBC Central Delhi branch worth it, given the time involved?
6. What happens to the cashback I earned?

Please advise!

 

[arjungoyal12]

You might request to start card relationship again. It might be not possible to recover previous card. If the card was closed, how you still were able to buy things from that same card? Even if the card restarts, they might issue you a new one. In that case, you won't be able to get the cashback earned. If the same card if enabled and shows in your account then only you can get back the cashback again

 

[abhimarda]

Questions:

1. Can the card relationship be restarted? I value its benefits.
2. Why was it closed, and is there any recourse?
3. The joining fee was charged; do I still have to pay it?
4. Can I escalate this to the RBI Ombudsman for resolution or compensation?
5. Is visiting the HSBC Central Delhi branch worth it, given the time involved?
6. What happens to the cashback I earned?

1. Need to mail them checking for explanation.
2. Looks like your office verification (part of KYC) failed. Depending on what response was provided by the contact person in your office or was it said that non one works from office or something of that sort.
3. Ideally joining fee should not be charged as the mail says the relationship cannot commence. Without commencement of relationship, one can't charge either logically, so that should be refunded ideally.
4. If the bank does not provide a satisfactory resolution then you can go to RBI Ombudsman however it seems that they are not able to do KYC and that will be their defence.
5. It may not be however written complaint on email will be totally worth.
6. Until and unless your relationship restarts, I don't think you are getting any cashback.

Meanwhile I would suggest to take HDFC Swiggy (LTF till 31Dec'24) and SBI Cashback card instead, which in total should serve the purpose.

 

[SJtemp]

Someone just got 30000 as compensation after complaining to ombudsman about abrupt closure