CF in Connecticut said: “HSBC has attempted to commit fraud by padding a payoff statement by$2445.00. The reason I claim this is by their record supplied to me by HSBC in the form of an activity report demanded by me. As part of a bankruptcy filed and discharged in 2005, three (3) payments were to be moved the rear of the loan. In December 2005, as soon as regular payments commenced, HSBC began diverting money slated for principle and applied it to the 3 deferred payments.
When questioned they claimed that they were allowed to do this under the reaffirmation agreement. They in were allowed to. Here is where the fraud begins. In August 2006, I attempted to refinance. HSBC produced a payoff demand statement that included as part of the payoff the 3 payments. Up to this point HSBC had already collected $2445.00 of the $3996.00 deferred interest. On the statement they claimed the full amount. Secondly I found out that they had not applied any money to the principle balance since August of 2005.
The plot thickens. According to HSBC it is company policy not to report to any credit reporting agency for 1 year following a bankruptcy. As a result HSBC has not filed any reports to any credit reporting agency for over 14 months. At the refinance HSBC denied a request for a mortgage payment history and would only release the date of the last payment made. As a result of this, I refused to make any further payments and filed a RESPA complaint. As a result of the complaint and not paying they are attempting to foreclose, never having answered the complaint.
Within three days of filing the complaint I received two letters stating they would foreclose and 2 telephone calls demanding payment. So much for RESPA. I am in court now and have filed complaints with the White Collar Crime unit of the FBI claiming mortgage fraud, as well as the Attorney Generals office. I also filed the extended right to rescind as allowed under Title 15 USC. These people are bad news, and I pity anyone having to do business with these people.”
Related posts:
This is a follow up to my prior post. I sent my motgage to a paraleagal group to be be audited. As a result of the audit, it was discovered that the note was underdisclosed for $294,303.52. With this in hand I now plan a civil law suit to recover damages in the amount of $1.5 millon dollars. I also filed a right to rescind under regulation z 226.23 extended right to rescind. HSBC is clearly a major player in subprime mortgage area, is following closely the past practices and pollices of HFC.
This is a follow up. As allowed by law I filed my Right To Rescind. HSBC after receving the notice, sent me a letter in which they stated that the reviewed my loan papers and feel that there is no problem and as a result they choose not to accept the valid and legal right to rescind. Truth in Lending and RESPA clearly states a required procedure be followed by the lender upon receipt of a valid Right To Rescind. None of the requirements allow the lender to choose not to except. It is up to a court to decide wether the reson for rescinding is valid and legal. Not the lender. This cleary shows the HSBC could care less about following the law. It uses the law to place its demands upon its customers, but ignors it when it applies to them. I did file a lawsuit in CT courts, issued a summons to HSBC to answer and appear, but to date HSBC has failed to answer the summons. They also attempted to foreclose. To date the foreclosure has been stooped and a counter claim has been filed. HSBC Mortgage Services(ex) Household still thinks that the laws are a joke and don’t apply to them. This company needs to be reined in.
A new up date 10/7/2007. From the start of my many issues with HSBC has been that the loan was understated, under disclosed and the HUD mandated disclosure statement contained false and misleading information. My loan was audited by an independent 3rd party confirming and supporting my claim. HSBC has denied that no laws were broken and that the loan papers were correct and I had no basis for a complaint. Well today 10/07/2007 a letter sent to me by HSBC stating that the rate was scheduled for change on 11/01/2007. In the letter HSBC stated the amount of payment increase as well as the new interest rate. Well to make a long story short. The amount of increase was the amounts found missing from my actual loan papers. In effect HSBC has by thier own action in demanding the new payments proved my case. Using the figures supplied by HSBC my loan is in fact understated by $304,000 and under disclosed by $288,000. The payment schedules and dates are missing, the amount listed as the first payment change is $200.00 higher than the one listed on the loan documents. Again HSBC shows it contempt for the law. Knowing that the loan is in violation of law and then demanding the payment for an ilegal and invalid loan. I spoke with the CT AG today and his office has requested copies of all letters and communications with HSBC addressed to me. I was told if HSBC attempts to foreclose in the face of my legal actions, that his office would help me in stopping HSBC.
Great reading. Good luck to you. You are making the point many others are screaming to make. Keep it up.