HSBC Horror Stories

NP in Tennessee said: “Several years ago, I bought a satellite receiver system. This was before the digital satellite systems we have now. The financing was arranged through EchoStar and GMAC. The original principle was $2800 for the system and installation, and the monthly payments were guaranteed to be under $70. It was my understanding that this a straight amortization loan.

The account was purchased by an outfit called Household Retail Services, Inc, which I later found to be a part of Household International and affiliated with about 2 dozen financial companies in as many states.

I soon found out that these guys wrote the manual for predatory lending.

First, one of their affiliates in a different state issued a credit card in my name, with a credit limit of $2700. The $2800 purchase was charged to this card and the card was then canceled by the company. This allowed the issuing company to charge a penalty interest rate of 34% on a revolving credit plan. The account was then sold to HRSI as a collection account.

I would send the $60 payment in and the account would first incur finance charges, and additional charges for late fees (the check was always held until at least one day after the due date), and credit life insurance (which was underwritten by another subsidiary of Household International, and which I did not request). As a result of these and other creative bookkeeping tactics, with each payment, the principle remained the same.

I called the customer service line and told them that I did not want or need the credit life coverage, and was told that it was taken off the account. Next statement the Credit life premium was still there. So I notified them in writing, and they swore that they did not receive a letter. So I sent them another letter by registered mail. The next statement still included the credit life premium. I called again and the CSR claimed that no letter had been received, so I gave the CSR the name of the person who had signed the mail receipt, and suddenly the rep said “Oh” and then informed me that the credit life insurance was dropped from the account. The Credit Life premium was replaced by some “Fees” that totaled to slightly more than the premium, and I could never get any explanation of the fees.

At times when I had extra money, I would send in $120 or $180 instead of the $60 minimum amount. In spite of this, the balance went up.

Finally after a few years of being ripped off, I got a debt consolidation loan from a reputable financial firm, and paid off this bunch of crooks. The financial firm contacted HRSI for the payoff amount, and issued the payment the next day.

HSRI then claimed that I owed them an addition payment for finance charges after the payoff quote. An additional $60 after they had screwed me out of thousands.

Since that time, I have been very careful avoid them. They started calling me regularly trying to get my money again. One of their sales people was even threatening me on the phone and calling at late hours. I taped one call, played it back to the sales guy and said “I have no intention of doing business in any way shape or form with Household International, or its subsidiaries or affiliates, and if you call me again, I will refer this matter, along with the taped conversation to the FBI.” “

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