High closing costs shock HSBC customer
SP in Florida says: “I refinanced my home thru Solstice Capital in May, so that I could pay off my husband’s bills. I was told by Benson Mugo that when I paid off my bills and straightened out my credit that I could come back to them in two months to acquire the additional $20,000 to correct the rest of my husbands bills. On that promise, I signed for the loan. The next day I called Solstice to talk to the person that handled my loan, Benson Mugo. I was told that he no longer worked there. I paid $12,000 in closing costs, which they never told me or warned me about.
When two months had passed and I straightened out my credit, I returned to them to apply for the additional money, to which I was told that I wouldn’t be approved, but if I wanted to put my new car that I just bought into a 20 year loan, I would get a lower payment and be able to get SOME additional cash. Since then, I have contacted MortgageBanq to go thru the refinancing again, as I still needed the cash. I have been working with them for over two months now. What would have been a $13,000 cash back has now been turned into a $3,000 cash back because I have to pay $10,000 penalty payment.
Because I can get no additional money from Solstice, I am screwed. I can’t even pay off my husbands bills as originally intended, and my daughter has to have braces which will cost us approximately $6,000. I wish I knew what to do to at least recoup some of the money that Solstice capital took from me. I am so frustrated and at the end of my rope!”
Editor’s note: How does this relate to HSBC? Solstice is part of HSBC. SOLSTICE CAPITAL HSBC Finance Corporation, a wholly-owned subsidiary of HSBC North America Holdings Inc., has reached agreement with the shareholders of Solstice Capital Group Inc. to acquire 100 per cent of the privately held US-based mortgage lender. (29 August 2006)
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This company lives on the edge of another big lawsuit. Just look at their track record. And in London, the headquarters of HSBC, predatory lending is dragging them down altogether. Shareholders are unhappy, just as Household International shareholders were unhappy. Scamming customers just to make a dime is giving HSBC a black eye.