HSBC Watch News Release Forum Index
Forum Name: - Scams
Topic Title: Looks Like The Live Check Scam Is On-Going
Wed Dec 07, 2005 10:01 am
I was browsing a credit message board and there was a question from a member about a $5000 "live" check she received in the mail from Household Finance. She was wondering if it was real and upon looking closely, noticed the high-above 20%-interest rate that went along to it.
I was under the impression that one of the terms of the horrendous settlement with Household was that they were not allowed to issue these types of checks.
Does anyone have any further info on this? Thanks...
Thu Mar 09, 2006 8:28 pm
Hi, I found this forum thru Google, while looking up info on HFC & loans.
I am one of the naive MORONS who fell for the "live check" thing.
They kinda timed it perfectly, few weeks before x-mas & I was considering opening a line of credit somewhere...
They sent me a live check for $8K.
So what did I do?
Instead of tearing it up, like I'd normally do, i deposited it...
Knowing the interest rate wouldn't be that great, but the payments appeared within my range ($200), plus, I had been looking for ways to build up my credit.. So figured this would be another way to show 'steady payments' for 6 mos to a year on my credit report & in turn, boost my score...
I figured, I'll pay the minimum payments for a few months then start sending in 1K or more a month to pay it off quickly (i planned to have it paid off within a year)...
Well doesn't look like it will be that easy to get out of this damn loan now that I look at it...
So I'm about 4 months into this loan & have been sending in about 20-30 extra on top of the minimum payment due (which turned out to be around $240).
I have been looking at the statements & now notice that out of the $270 I sent in last month, only $36 was applied towards my balance !!!!
Now I am realizing, that it's much WORSE than I originally thought.
At this rate, I will NEVER pay this loan off...
And sending in EXTRA money doesn't even help !!!
I thought I had it figured it out, but now not sure how to pay this off without getting screwed even further..
I don't have the entire balance in cash, so I cant ask for a "pay off balance" right now.
I thought that by sending in large chunks every month, I could have it paid off within the year & boost my score in the process...
Well now I know they don't apply all my money to the principal. DUH!
I knew some would go to interest/fees, but JEEEZ damn near all of it !!
So it's like I am literally GIVING THEM money each month, and they toss a few cents towards my prinicipal..
What a SCAM.
Any suggestions for getting rid of this via payments?
Only thing I have in mind now is, keep paying for a couple more months so my credit at least hopefully will show the steady pattern...
Then apply for a personal loan at my credit union to pay the HFC scam off, of course I have to cross my fingers & PRAY my bank/credit union will loan me the money...
And if they don't.. man, I guess am screwed?
I don't want to refi my house just to get rid of this.
LEARNED MY LESSON !!!!
Never again will I deal with these SHARKS !
And they even have the nerve to KEEP calling me trying t ogive me MORE money or get me to sign up for there HELOC !!!
Grrrrr !!!
Thu Mar 09, 2006 11:26 pm
What you describe is EXACTLY how we became ensnared in Household's clutches!
It was my impression that the famous class-action lawsuit settlement (one of the biggest jokes ever pulled by a bunch of people who should have known better, including the States' Attorney Generals) that Household was to cease and desist sending "live" checks. I could be wrong; someone please correct me if I am.
This company is soooo slick when it comes to casting out their net. We ended up with a HELOC that would have paid off only about $900 of a $36000 balance after 15 years! So you are right to be concerned and I applaud you for having picked up on the way they post payments. They won't tell you how their unique system works and usually only an accountant can figure out what is really going on.
You are correct in that the only way to get rid of this loan is to somehow pay it off. What ever you do, do not accept anything else from them. Above all else, do not get yourself wrapped up in another loan or credit card from them. You will only sink deeper into the mire.
Is there a credit union you can join where, after a time, you can get an honest, upfront and decent loan to pay Household off? That would be about your best option. If you are fortunate enough to obtain financing with someone honest, be sure when you pay Household off that you send the payoff amount certified, receipt sent back to you--make it ironclad that you have proof that they received the payment.
I cannot believe that this company is still using the same tactics it did before the settlement. That is why class-action lawsuits are a joke! Please do not respond to any offers they make, and if you do speak on the phone with them, do not take the word of the person you are speaking to. If you don't have it in writing from them, you will never be able to prove whatever it is that they tell you. Please, DO NOT call and try to re-negotiate this loan; you will never, ever be able to get a truly better deal and the hole you are in will get deeper.
Don't blame yourself for falling for this. A lot of people do, and as stated it would take a certified accountant to figure out the way their payment system works. We trust businesses to be honest and upright. After my experiences, to tell the truth I trust none of them now. Which is sad, there probably are still some honest ones out there (that is why I recommend a credit union, if you can join one).
Just be glad that you probably caught on soon enough to ward off any future troubles. BTW, take a note of the stores listed here (in particular, Best Buy) that use Household for their financing. Also, watch out for those mail-in rebate tricks. I never buy anything that requires a mail in to get a rebate. The only reason they exist is so that Household or others of their ilk can get consumers' names and addresses and start trying to lure them into their web.
Good luck to you. Remember, it could have been worse but you caught on to what was afoot. My question is why is this company STILL in business??
Fri Mar 10, 2006 11:20 am
Thanks for reply...
Are there any rules or laws on the books that let the consumer make seperate payments towards the principal?
I am in California by the way...
You know, I wouldn't mind it as much if my payments were actually making the balance go down.
But it's obvious, it really is *not* going down.
So it is completely ridiculous.
Just wondering if there is a way to use the system & satisfy my financial obligation without getting screwed so hard.
thanks for your input!
Fri Mar 10, 2006 2:26 pm
Thanks for reply...
Are there any rules or laws on the books that let the consumer make seperate payments towards the principal?
I am in California by the way...
I'm afraid there isn't :( And if you tried to set up such an arrangement with Household I would be shocked if it were credited properly. If you do try to reason with them, however, remember: always get everything IN WRITING. I can't emphasize that enough. It is the one thing that will stand up in court. Household will promise you the moon and then deny everything.
You know, I wouldn't mind it as much if my payments were actually making the balance go down.
But it's obvious, it really is *not* going down.
So it is completely ridiculous.
That's what really bothered me. Then I found a document where an accountant actually did the work on a loan from Household with almost the same characteristics as mine and the "Home Equity Line of Credit", if only the minimum were paid each month (and the minimum was $725!), at the end of 15 years the amount of credit available to reuse was something aruond $900. Where oh where does the money go once it reaches Household?
Just wondering if there is a way to use the system & satisfy my financial obligation without getting screwed so hard.
Are you aware of any ACORN offices near you? I am ambivalent about them but they were instrumental in bringing the class action lawsuit against Household to the forefront and then the Attorney Generals got involved. If nothing else, they may be able to tell you if Household was allowed to even send these live checks out. I bet Household used the excuse that the deal was made with HFC, and not HSBC, which purchased Household right after the settlement was made (talk about sneaky!). You know, I would rather have dealt with the Mafia.
BTW, you don't have a balloon payment at the end, do you? That is the worst of the worst.
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