Personal Finance

HSBC ???preapproved??? for LOC

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  • May 19th, 2019 3:46 pm
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[OP]
Newbie
Apr 27, 2019
16 posts
19 upvotes

HSBC ???preapproved??? for LOC

I received an email from HSBC (I have existing accounts with them) saying I was preapproved for a $20k line of credit with a link to accept offer.
I followed the link and it only asked for basic info like how much $ LOC do you want.
The next day I receive an email from an HSBC employee asking for all kinds of info (job salary assets liabilities, etc) and saying they need a 20min phone call with me to gather info.

What is wrong with HSBC? If I am preapproved I shouldn’t need to jump through hoops to accept an offer they sent me.
11 replies
Deal Addict
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Jan 16, 2007
1248 posts
1335 upvotes
Preapproved doesn't mean preapproved in all cases, and can still require an application.
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Deal Fanatic
Nov 22, 2015
5734 posts
5213 upvotes
Not all FIs do full pre-approvals, and some, not for all products.

For example, at CIBC, pre-approved PLCs require no additional info whatsoever. On the other hand, a pre-approved CIBC Visa, still requires a full application, same as anyone else off the street.
[OP]
Newbie
Apr 27, 2019
16 posts
19 upvotes
In my view, using the word “pre-approved” means they should just give you the product without asking for any further information. This is misleading at best and it is a dishonest marketing practice by a federally regulated financial institution.

I replied to HSBC that I’m not interested in providing any further information nor wasting 20min of my time on some phone call for something that is supposedly pre-approved.

Do you think I should start a complaint process over this dishonest practice of misleading customers?
Deal Fanatic
Nov 22, 2015
5734 posts
5213 upvotes
Triple3BBB wrote: In my view, using the word “pre-approved” means they should just give you the product without asking for any further information. This is misleading at best and it is a dishonest marketing practice by a federally regulated financial institution.

I replied to HSBC that I’m not interested in providing any further information nor wasting 20min of my time on some phone call for something that is supposedly pre-approved.

Do you think I should start a complaint process over this dishonest practice of misleading customers?
Although, to a typical consumer, "you're pre-approved" means "you already passed the approval process and therefore are guaranteed to be immediately granted the loan if you apply," the literal meaning is different. The literal meaning is "at a stage before approval." Thus, the term "pre-approved" is often used by advertisers to induce consumers to apply for the advertiser's offer.
https://en.wikipedia.org/wiki/Pre-approval

You could certainly initiate a complaint as many others in Canada and other countries have been doing
Sr. Member
Jun 13, 2018
633 posts
470 upvotes
Triple3BBB wrote: In my view, using the word “pre-approved” means they should just give you the product without asking for any further information. This is misleading at best and it is a dishonest marketing practice by a federally regulated financial institution.

I replied to HSBC that I’m not interested in providing any further information nor wasting 20min of my time on some phone call for something that is supposedly pre-approved.

Do you think I should start a complaint process over this dishonest practice of misleading customers?
That process you like is the same process that granted credits cards and house loans to dogs & cats back in the 80's. Now with online identity theft issues, where anyone could click a link and run with the cash, you want them to not bother you with confirming who you are? If you don't want the credit line then say no. If you do then a few minutes shouldn't be a deal breaker, you had the time to make this thread.
Jr. Member
Aug 27, 2018
172 posts
163 upvotes
Triple3BBB wrote: I received an email from HSBC (I have existing accounts with them) saying I was preapproved for a $20k line of credit with a link to accept offer.
I followed the link and it only asked for basic info like how much $ LOC do you want.
The next day I receive an email from an HSBC employee asking for all kinds of info (job salary assets liabilities, etc) and saying they need a 20min phone call with me to gather info.

What is wrong with HSBC? If I am preapproved I shouldn’t need to jump through hoops to accept an offer they sent me.
Are you new on planet earth? HSBC are criminals, convicted of laundering drug money. Banking regulators are at best asleep at the wheel, at worst doing a bad job and waiting for the revolving door.

Yeah, they lied to you.

https://www.theguardian.com/business/20 ... laundering

Here they are successfully silencing press coverage in the UK in a major newspaper: https://www.opendemocracy.net/en/opende ... telegraph/
Deal Guru
User avatar
Jan 9, 2011
10177 posts
12171 upvotes
Vancouver
Triple3BBB wrote: What is wrong with HSBC? If I am preapproved I shouldn’t need to jump through hoops to accept an offer they sent me.
Dude, "you're pre-approved for credit" almost never means what you think it means. It's a marketing term meaning little more than "you're invited to apply". You're still going to have to go through all of the same hoops as anyone else, including the hard hit on your credit file. And this isn't particular to HSBC, you'll find this from tons of lenders, including Tangerine who is notorious for this.
[OP]
Newbie
Apr 27, 2019
16 posts
19 upvotes
Hello? I have existing accounts with HSBC and they sent me a directed email. I had to login to my online banking to accept the offer. HSBC obviously knows who I am.

It sounds like you work for HSBC?
Deal Guru
User avatar
Mar 23, 2008
11906 posts
8170 upvotes
Edmonton
Triple3BBB wrote: Hello? I have existing accounts with HSBC and they sent me a directed email. I had to login to my online banking to accept the offer. HSBC obviously knows who I am.

It sounds like you work for HSBC?
Did you read the full email, including any fine print? In most cases, they spell out what “pre-approval” means to them in that case.

C
[OP]
Newbie
Apr 27, 2019
16 posts
19 upvotes
I think some people are missing the point. HSBC is a federally regulated financial institution. They should not be soliciting customers with misleading dishonest tactics.

If HSBC uses “you’re pre-approved” in an email to a customer, the plain and ordinary meaning of that language is all that is required. Customers should not be required to refer to some small print, page long definition that is completely different from the plain and ordinary meaning.

Federally regulated institutions are held to a higher standard.
Jr. Member
Aug 27, 2018
172 posts
163 upvotes
Triple3BBB wrote: I think some people are missing the point. HSBC is a federally regulated financial institution. They should not be soliciting customers with misleading dishonest tactics.

If HSBC uses “you’re pre-approved” in an email to a customer, the plain and ordinary meaning of that language is all that is required. Customers should not be required to refer to some small print, page long definition that is completely different from the plain and ordinary meaning.

Federally regulated institutions are held to a higher standard.
They were fined for washing drug money. Many other "regulated" banks are under investigation for billions in money laundering in BC. This is comical.

Yes, they should be better. But am I surprised when they are not? No.

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