These HSBC UAE Flexi Instalment Plan Terms and Conditions (“FIP Terms”) apply if you have taken a Flexible Instalment Plan. Defined terms used in these FIP Terms shall have the same meaning as set out in the HSBC Credit Card Agreement Terms unless specified otherwise.
1. What is a Flexi Instalment Plan?
Flexi Instalment Plan is a feature which allows you to repay one or more of your purchases made in the current billing cycle or the last statement billing cycle from an eligible merchant in Equal Monthly Instalments (EMI) over a fixed term.
2. How are Equal Monthly Instalments (EMI) calculated?
Your EMI will be calculated based on the reducing balance method (see clause 6 of these FIP Terms for further details). The interest rate will remain fixed for the period of the FIP you have signed up for. The amount of interest you pay, as a proportion of your monthly instalment, will decrease over the period of the FIP as your outstanding balance reduces. The remainder of your EMI will be principal repayments.
3. How do I show that I agree to these FIP Terms governing a Flexi Installment Plan?
You may agree to these FIP Terms by:
- Verbally agreeing with our agents over the telephone on a recorded line;
- Online or via any other electronic channels (including E-mails, SMS, merchant website app, Personal Internet Banking or Mobile Banking); or
- By using the Flexi Instalment Plan (your use of the Flexi Instalment Plan is deemed acceptance of these Terms).
You agree that any electronic method of acceptance shall constitute your acceptance of our terms, and changes to our terms, as if you had accepted in writing and all relevant Laws and regulations applicable to acceptance of contracts via electronic methods will apply. By accepting these FIP Terms you also agree to our Schedule of Services and Tariffs (as amended from time-to-time, which is available at www.hsbc.ae.
4. Are there any other terms that also apply?
Yes. By accepting these FIP Terms you understand that you also agree to our HSBC Credit Card Agreement Terms, Personal Banking General Terms and Conditions and for any FIP applications submitted through our HSBC UAE Mobile Banking app, our Online Banking Terms and Conditions will also apply. If there is any conflict between these terms, then these FIP Terms will apply.
5. How do I apply for a Flexible Instalment Plan?
You may apply for a FIP by using our Mobile Banking app, calling us or by following the instructions provided in any communications we have sent to you in relation to this plan. We will evaluate your request based on the most up to date information we have on you in our records including data available on the Al Etihad Credit Bureau where applicable and contact you if you are eligible. Please note that the actual offering of a Flexi Instalment Plan will only apply to customers who we believe may be eligible (based on the information we hold and our internal policies) and/or subject to meeting any minimum amount threshold that might be applicable on a single or multiple transactions, from time to time.
6. Will I be charged any fees and/or interest?
We may charge you fees and/or interest but will communicate these to you via Personal Internet Banking, Mobile Banking, merchant website or app, emails or phone (depending on how you have applied), before you proceed with the Flexi Instalment Plan application. Please refer to our Schedule of Services and Tariffs for details of our latest fees and charges (as may be amended from time-to-time, available at www.hsbc.ae, or call us to find out more.
Any fee (if applicable) will be billed to the retail plan. This means the fee(s) will be treated as a regular retail purchase and will accrue interest as per the retail interest rate if not paid in full by your next payment due date.
If an interest rate applies to your FIP, we will charge this for the subsequent number of statement cycles for which it has been approved. For example, if you have taken a Flexi Instalment Plan for 6 months, the Flexi Instalment Plan interest rate applies on your outstanding Flexi Instalment Plan amount for the 6 subsequent statement cycles post approval. The interest rate will remain fixed for the period of your Flexi Instalment Plan. We will apply the interest rate on a monthly basis to your outstanding Flexi Instalment Plan balance as it reduces each month (i.e. as you pay each scheduled Equal Monthly Instalment). This means that the amount of interest that you pay, as a proportion of your Equal Monthly Instalment, will decrease over the period of the Flexi Instalment Plan as your outstanding balance reduces. This is known as a reducing balance method.
7. What else do I have to pay under the Flexible Instalment Plan?
We will let you know the amount and number of Equal Monthly Instalments due before you proceed with the Flexi Instalment Plan. You must ensure you pay these on time.
8. What if I miss a payment?
The Equal Monthly Instalment amount will form part of your monthly minimum payment due for your credit card. If you fail to pay your credit card minimum repayment amount by the due date in two consecutive months at any point during the term of the Flexi Instalment Plan, then:
- all of the outstanding Flexi Instalment Plan amount will become due in the following month’s Credit Card statement;
- all of the outstanding Flexi Instalment Plan amount at that time will be converted and treated and priced like a retail purchase and cannot be converted back to Flexi Instalment Plan. Interest will also be calculated based on your average daily balance; and
- you may also be charged a late payment fee and a higher amount of interest as set out in our Schedule of Services and Tariffs, available at www.hsbc.ae
9. How long will the Flexi Instalment Plan take to complete?
We will endeavor to process the Flexi Instalment Plan within 5 Business Days of your Flexi Instalment Plan being approved by us. We’re not responsible for any delays in processing your Flexi Instalment Plan, for example, where there are changes in your available credit limit since the time you have applied for a Flexi Installment Plan.
10. How much of my credit limit will be used as part of the Flexi Instalment Plan?
Both the flexi instalment amount, any applicable fee and the total interest payable (whether or not this has been billed) as part of this plan will be deducted from your available credit limit. This means that at any time during the term of Flexi Instalment Plan, your available credit limit must be enough to cover the outstanding Flexi instalment amount, any applicable fee and the total interest payable. Your credit limit will be restored as each Equal Monthly Instalment is made.
11. What happens if I pay the Total Outstanding as shown on my Credit Card statement?
If you have taken any Flexi Instalment Plan and pay the ‘Total Outstanding’ amount each month reflecting on your credit card statement, then the payment in excess of the ‘Minimum Payment Due’ / ‘Equal Monthly Instalment’ on your statement will be treated as credit balance on your Credit Card. Hence you need to pay the amount appearing as ‘Total Amount Payable’ at the bottom of the list of transactions on your statement.
12. Can I cancel or early settle the Flexi Instalment Plan? Will I be charged any cancellation or early payment fees?
You can request a cancellation of the Flexi Instalment Plan within 7 Business Days of booking the plan. We will cancel the Flexi Instalment Plan and the amount of the plan will be treated as retail spend going forward, as if the Flexi Instalment Plan did not apply. You may be subject to cancelation fees. Please visit our Schedule of Services and Tariffs on www.hsbc.ae for all applicable fees and finance charges.
12.2 Early settlement
You can fully repay the Flexi Instalment Plan before the end of your plan by calling the number(s) at the back of your Card and making full payment towards your Flexi Instalment Plan outstanding balance. You may be subject to early settlement fees. Please visit our Schedule of Services and Tariffs on www.hsbc.ae for all applicable fees and finance charges.
To do this, you must:
- at least 7 Business Days before your next billing cycle: make the full payment towards your Flexi Instalment Plan outstanding balance to ensure you are not billed the instalment in the next billing cycle statement
- within 3 Business Days of making the full repayment: call us to let us know you’ve made the payment to early settle your plan. If you don’t, your payment will remain as a credit balance on your Credit Card account and you will continue to be billed the instalment amount each month until the end of your Flexi Instalment Plan term. You cannot partially pre-pay the Flexi Instalment Plan. You need to pay off the entire Flexi Instalment Plan outstanding amount if you wish to early settle the Flexi Instalment Plan.
13. What happens if I have a dispute with the merchant?
We’re not responsible for the goods or services you purchased under the Flexi Instalment Plan and any dispute about them should be resolved by you directly with the merchant. You are still responsible to repay your monthly instalments to us even where you make a claim against a merchant, or return or stop using the goods or services. The merchant does not have the authority to bind us or any member of the HSBC Group and we will not be liable for any statement made by them to you before or after your application for the Flexi Instalment Plan.
14. What happens if the purchase on which the Flexi Instalment Plan is booked is reversed?
In case you convert a purchase into instalments but subsequently cancel the purchase and get a credit for it from the merchant on your HSBC credit card, you will also need to contact us to cancel your Flexi Instalment Plan. If you don’t, your Flexi Instalment Plan with continue as originally agreed.
15. What if my card is cancelled or terminated before the Flexible Instalment Plan has been fully repaid?
The sum of all outstanding instalments will be immediately due and payable.
16. Can the Bank vary these Terms and Conditions?
We will only vary these Terms from time to time in accordance with our HSBC Credit Card Agreement Terms, the latest version of which is available at all times on our website at www.hsbc.ae. We will notify you, if necessary, as per the HSBC Credit Cards Agreement Terms.
17. What happens if we have a dispute?
Any dispute we may have under these Terms will be governed in accordance with the federal laws of the UAE and the laws of the Emirate of Dubai. Any dispute we may have arising out of, or in connection with, this Agreement (including any question regarding its existence, validity or termination) will be subject to the exclusive jurisdiction of the non DIFC Dubai Courts.
18. Electronic consent
By applying and signing-up for a Flexi Installment Plan you acknowledge and agree that:
- any electronic method of acceptance used by us in connection with our products and services (including, without limitation, use of digital or electronic signatures, indications of acceptance by ticking a check box on electronic forms or digital platforms) (“Electronic Consent”) shall constitute full and binding legal acceptance by you of any applicable terms and conditions as well as any future changes, amendments or supplements to such terms and conditions as may be applicable from time to time, as if you had accepted such terms and conditions in writing;
- all relevant laws and regulations applicable to acceptance of contracts via electronic methods will apply and you acknowledge that our records as to any such form of Electronic Consent shall be binding and shall not be challenged on the basis that they are available only in electronic or digital format;
- no certification authority or other third party verification is necessary to validate your Electronic Consent and that the lack of such certification or third party verification will not in any way affect the enforceability of your Electronic Consent or the validity of terms and conditions between us and you.
© Copyright HSBC Bank Middle East Limited 2021 ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Bank Middle East Limited. (CRN: TC022521)
Issued by HSBC Bank Middle East Limited U.A.E Branch, PO Box 66, Dubai, U.A.E, regulated by the Central Bank of the U.A.E and lead regulated by the Dubai Financial Services Authority. (Version FIPTNC00001)
Effective from: 1 June 2021