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HSBC Payment Protection Plan Class Action Lawsuit
By Kimberly Mirando

HSBC credit cardHSBC Card Services “slams” its credit-card holders by enrolling them in  “virtually worthless” payment protection plans without notice, says a federal class action lawsuit. What’s worse, the suit continues, is that HSBC solicits retirees, the disabled and other people they know don’t qualify for the plan’s benefits, allowing the credit card company to reap millions of dollars in profits.


According to the HSBC Card Services class action lawsuit, HSBC enrolls consumers into the payment protection plan without their knowledge, does not disclose the terms of the plan until after a customer is enrolled, and pitches it to people they know do not qualify for benefits.


“HSBC does not make any effort to determine whether a subscriber is eligible for Payment Protection benefits at the time of sale. As a consequence, HSBC bills thousands of retired persons (many of whom are senior citizens), along with the unemployed, self-employed, part-time or seasonal Illinois residents, as well as disabled individuals, for Payment Protection coverage, even though their employment or health status prevents them from receiving benefits under the plan,” the HSBC class action lawsuit states.


“HSBC knows that for those subscribers who choose to pay for Payment Protection, few will ever receive benefits under the plan and even for those that do, the amounts paid in ‘premiums’ will usually exceed any benefits paid out,” the class action continues, adding that HSBC’s Payment Protection plan is a “dense maze of limitations, exclusions and restrictions, making it impossible for customers to determine what Payment Protection covers and whether it is a sound financial choice.”


Customers that try to cancel HSBC’s payment protection are led through a customer service system designed to make canceling the plan difficult, if not impossible.


similar class action lawsuit against Discover Card’s Payment Protection plan is currently pending, and Capital One recently reached a class action settlement concerning its deceptive marketing tactics for its payment protection plan several months ago.


A copy of the HSBC Payment Protection Plan Class Action Lawsuit can be read here. 


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Updated February 11th, 2010


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  • Anonymous June 10, 2011

    HSBC Payment Protection Plan Class Action Lawsuit
    >:oI purchased the HSBC Payment Protection Plan. I did not see the addendum until I researched it on the internet and found out the reason they would not cancel my credit card debt. When I lost my job, I did not file for unemployment benefits because I did not feel I qualified for unemployment benefits but later when I filed, I qualified to receive emergency benefits. when I filed on the protection plan, HSBC refused to pay although I sent them the documents they requested. Then I checked with the state agency , they informed me that I would have initially qualified if I had filed. But HSBC claims they would not cancel the debt because I did not initially qualified for unemployment so therefore they would not reverse their decision. I had spent countless hours acquiring the documents and mailing them several times. The term “Loss of Job” did not include “must initially qualify for unemployment benefits”.

  • Anonymous October 4, 2012

    I purchased the HSBC payment protection plan and when I needed to use it I could not. They said I was not eligible .

  • Anonymous October 7, 2012

    I felt I had done everything asked of me as well a well and still suffered the same fate.

  • mary March 26, 2013

    i also had it and it did me know good at the time i need it.

  • Terrie Baker November 6, 2013

    I had to change my E-mail address. I believe at that time it was

  • Terrie Baker November 6, 2013

    If the settlement is for the amt show why is the check so small

  • Donna Fabio February 2, 2016

    I am happy to see that someone is challenging HSBC. Although I did not have one of their credit cards, I did have a checking account with them and was charged fees for overdraft AFTER I closed my account. I had to close my account 3 separate times in person and the last fee I was charged, I refused to pay. I had already paid about $400 in illegal fees. I am a senior citizen.

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