HSBC Horror Stories

DD in Pennsylvania said: “Levitz Furniture / HSBC Retail Services has charged us for a debt cancellation fee that we never signed up for. Last month customer service said they removed the charge and issued a $44 credit, but they did not. Phone calls go on hold for hours. No reply to emails. I can’t find a Corporate Address! Please help!”

RE: Call them at their corporate number 847-564-5000. If they still play stupid call the OCC (HSBC’s federal regulator) at 800-613-6743.

Editor’s Note: HSBC Finance, referred to in the report as Retail Services, has found a way to pack insurace into loans, even though insurance packing is considered predatory. The new twist is to simply call it a “debt cancellation fee.” Since the start of the subprime crisis, which hit HSBC very hard, we have seen an increase in the number of complaints about debt cancellation fees. Is this a way to raise money to offset losses? Certainly some customers complain while others never notice that they’ve been scammed. In the case above Levitz might be getting a portion of the debt cancellation product profit. Some analysts consider this grounds for a racketeering suit.