HSBC Horror Stories

The following complaints about HSBC, received from individuals around the country, should be considered as allegations only. We make no effort to investigate the validity of complaints submitted by customers and non-customers. Instead we monitor complaints such as these for trends that can be verified, just as we did before Household International was charged with predatory lending. Similar complaints from different states, where the people are unknown to each other, often lead to discovery of trends.

It is obvious that most complaints refer to HSBC Finance Corporation, the entity formerly known as Household International, which was purchased by HSBC Plc in 2003. HSBC is headquartered in London. HSBC operations in the United States include HSBC USA.

Professionals should insist on investigating and reporting such incidents to a state and federal forum. A copy of this report was sent to the National Association of Attorney’s General. We did not send copies to the Office of the Comptroller of the Currency – the federal regulator for HSBC.

In a recent discussion HSBC Chairman Stephen Green said HSBC’s purchase of Household International has been disappointing. It is strictly the opinion of consumer advocates at Household – HSBC Watch that HSBC had an opportunity to change the mindset, leadership guidance, standards, and expectations of personnel at HSBC Finance Corporation (Household International) but failed to do so. As a ‘pay for performance’ company one might expect to see questionable actions that result in bigger employee paychecks. Some of the complaints that follow indicate that may be true. It is a leadership problem.

Statistical trend analysis should be contrasted with known suits and settlements. Did previous enforcement stop practices previously identified? Have new trends been identified based on the findings below? Possibilities include, but are not limited to, cases where the online payment website does not work, or where statements were not mailed to the consumer. Allegations of payments being credited late were referenced in previous suits covering the time period from 1994 through 2004. Was this practice discontinued or is it still happening today? The complaints shown below demonstrate a serious payment processing issue across the United States.

Late processing of payments, including payments sent by express mail, with proof of delivery, by certified mail, or by bank electronic deposit should be investigated. Often these payments are private label credit card payments for HSBC merchants like electronics retailer Best Buy Stores. Allegations should trigger racketeering, influence, and corruption (RICO) guidelines for investigators.

After reading the complaints below does one get the impression HSBC Finance Corporation employees will say and do anything to customers? With full knowledge that the customer is held to binding arbitration, employees can say and do whatever they desire. A complaint at the end of this report, published in its entirety, makes that very clear. What we find repulsive are deliberate, hate filled attacks. Here are three reports:

“…tried to collect the debt by calling me every name in the book and insulting my military career and my time in the service saying I was a disgrace to the Marine Corps, the country, and that I wasn’t a fit human being and degraded the American military in general.”

“…This company is a British owned company and the head of the company made the statement that how he runs his company is his business. He is not afraid of the FBI, Attorney Generals, American Courts, etc. and he will continue to operate as he pleases in our country and there is nothing they can do about it”

As watchdogs we are open to attack, although we rarely get hate mail. Recently we were told “…you are not retired military – you are cowards. I hope my taxes do not go to paying your retirement…”

Ethically repulsive to those who expect a degree of professionalism and fiduciary responsibility, these reports represent a small portion of what might really be happening. Statistically only 5 percent of people take the time to file a report with online websites. Real people, living in the states identified, sent the following complaints:

Alabama
Online payment complaint
Collection calls to non-HSBC customer
Account closed in 2001 still open in 2007
Letter results in collect calls

Alaska
No complaints

Arizona
Charged for disability insurance, never signed up
Payments posted one day late (August through October 2007)
No statement, next statement has late fees
No-interest promo negated

Arkansas
Predatory lending allegation

California
Cannot pay online through website
Person was told they cosigned but did not
Cannot pay online through website
Collection calls to non-HSBC customer
Predatory lending allegation involving disabled person
Rejected online bill-pay payments
No statements, said online statements are default option
No motorcycle lien release
No online payment option, late fees added
Identity theft not recognized, fraud protection not honored
Deferred finance charges
Customer was told they opted not to receive a statement
Credit report altered in 2007 with 2005 questionable late fees
Early payment results in late fee
No-interest promo negated with 2-cent balance
Statement arrived late, online payment fee assessed
Change of credit card terms, interest jumps from12 percent to 27 percent
No statements for financed motorcycle, charged late fees
Credit card account not closed per request, charged annual fee and late fees
Payment refused until customer updates contact information
Change of address ignored, calls to customer at 5 AM (military)
20 calls per day received in hardship case

Colorado
Balance is higher after three years of payments
HSBC auto alleged to consistently post payments one day late
Late fees on double payments
HSBC collections calls wrong person
HFC regional manager changes contract after customer TV interview

Connecticut
Allegations of padded payoff

Delaware
Allegations that appraiser fees cut, new appraiser benefits HSBC
Merchant complaint against Rainsoft

Florida
Collections calls to non-HSBC customer, violation of cease and desist
No answer at customer service toll free number
Settlement scam alleged
Statement arrives late, charged late fees
Repossession of paid off automobile
Gift card complaint, no customer service number provided, no card received
Home mortgage late fees turned over to attorney general
Home mortgage payments applied incorrectly
Account paid off in 1998 still shows as open account
Payment lost, balance transfer results in late fee
Bank bill pay shows audit trail but HSBC claims late payments
Balance transfer agreement not honored
Payments lost in HSBC system, classified as late
Statement arrives on due date, late fee assessed
Alleged predatory lending by Solstice Capital
Will not accept payments on the due date, extra $15 fee

Georgia
No help with adjustable mortgage
Did not (forgot) to pay mortgage escrow items
Charges added to zero balance card, collections called 7 days a week

Hawaii
Outrageous HSBC Mastercard security questions

Idaho
No-interest promo negated with one-dollar balance
HSBC Taxmasters did not update credit reports
Identity theft in 2003, discovered in 2007

Illinois
Collections calls to non-HSBC customer
Online payment complaint, late fee
Customer given payment address, payment returned “no such address”
Repossession with online payment difficulties
No first statement, $29 late fee on second statement
Questionable debt cancellation fee, never signed up for such service
Statements arrive late in billing cycle, excess fees

Indiana
HSBC Gateway no-interest plan not honored, negated
Same as cash plan forced insurance, credit card
Online payment problems
Constant calls to non-HSBC customer from collections

Iowa
Sliding due date causes late fees
No-interest negated, charged $1100 in interest, claimed check not received

Kansas
No-interest plan, received no statements, all interest due
HSBC credit card used overseas, put hold on payment, card unusable
Applied for Best Buy card, got Mastercard too, never applied
Late fee after payment mailed, claimed 9 days to process payment

Kentucky
Insurance upsell, insurance not honored

Louisiana
No complaints found

Maine
Online payment website does not work

Maryland
Payment mailed 12 days early, charged a late fee
Defunct Storehouse Furniture account never corrected by HSBC
No help from HSBC for adjustable rate mortgage loan
Best Buy, UPS lose shipment, no refund from HSBC
Late fee, rate raised to 31.46 percent

Massachusetts
Settlement not honored, settlement money taken – scammed
No live help on toll free customer service line
Payments mailed early, 14 day processing, late fees charged
No-interest deal not honored, negated, no statements sent

Michigan
Electronic statements ‘pay now’ button does not work
Statements arrive late
Payments applied late, fees charged
Telephone payment charge of $15 collected when online payment website does not work
Zero balance but no auto loan lien release
No reaffirmation letter after bankruptcy
Applied mortgage payment to credit card account balance
Settlement not honored, settlement money taken – scammed
Declined debt cancellation, charged fees for debt cancellation anyway

Minnesota
HSBC Union Platinum Mastercard – no statements
Finance charge, late charge, debt cancellation charge and prior cycle finance charges
Finance charges reflected as new purchases
Bank faxes error, takes responsibility, HSBC charges customer anyway
Online payment website does not work
Chargeoff and 199 from 2004 relisted on credit report
Identity theft

Mississippi
No statement received, online payment website not working, $15 telephone fee charged

Missouri
Beneficial Finance errors cause home sale to fall through
Repossession of auto but payments rejected
No-interest deal not honored, negated
Allegations of HSBC holding payments until after due date
Online payment website not working, late fees charged
Credit card contract modified but not agreed to

Montana
Nothing on file

Nebraska
Judge denies summary judgement, HSBC ignores the judge
Co-signer never received any information until account is late
Insurance not honored

Nevada
Bulk mail solicitation vulnerable to identity theft

New Hampshire
Foreclosure after HSBC error
Formal complaint to New Hampshire Banking Department

New Jersey
Telemarketing harassment reported
Zero interest statements say no payment due, monthly payment is due
Judgement shows up on credit report, customer had no business with HSBC

New Mexico
Constant calls to non-HSBC customer from collections

New York
Alleged that employees must work free overtime
Constant calls to non-HSBC customer from collections
HSBC claims car title department is closed on Wednesdays
Car title never received
Balloon loans have no information about end of term
Contractor’s payments unavailable when account was closed
Allegations of sexual harassment at Depew mortgage center
Account of social security recipient frozen
HSBC executive steals $30 million from unsuspecting customers
Payment said to be late, rate rises to 32 percent
Motorcycle loan contract modified by HSBC
Default judgement obtained through false affidavit of service
Late fee charged after using online payment website

North Carolina
Theft claim not paid, customer gets run-around
Alleged insurance packing results in court date
No lien release when vehicle paid off
Product insurance denied as filed late, postal service says otherwise
Unable to view mortgage account online
Credit granted, then HSBC immediately lowers available credit limit
Charge off from 2003 just reported to credit bureau in 2007
Fair Credit Act violation, ignores statute of limitations
HSBC’s HFC alleged overcharge from 1997
Alleged HFC insurance packing
Alleged FCRA violations
Opened 3 month CD, then told funds must come from outside HSBC
Credit card annual fee charged twice
Online payment website not working
Supervisor rude an unprofessional, RE Best Buy account

North Dakota
No complaints filed

Ohio
Alleged late posting of payment
Overpayment not correctly applied
High early payoff penalty for home mortgage
Automated calls from India, U.S. data center says no reason for calls
Constant calls with no past due balance
Title and lien release problems
Foreclosure avoidance problem
Online payment website, must take survey before customer can pay online
HSBC Auto warranty problems
Late fee and pay-by-phone fee complaint
Bank bill pay payment takes 10 days to post
Allegations of late payment posting
Payment by Western Union claimed never received by HSBC
Payment by express mail processed late

Oklahoma
HSBC claims payments not received, bank records show all payments
Payment processed two days late, interest rate jumps from 9.9 to 30 percent
Alleged $5 fee for HSBC to manage closed account
Allegedly approved for two auto loans, repossessed, garnished

Oregon
Same as cash final payment not credited, all interest called due
Two weeks since payment, payment not posted

Pennsylvania
Change of terms to mortgage purchased by HSBC

Rhode Island
Tried to pay online, gave up after 3 days

South Carolina
No complaints on file

South Dakota
No complaints on file

Tennessee
No reversal on fees although under hardship
Customer reported as deceased, no more bills, bad credit report
Did not provide payoff near end of no-interest deal, collects all interest
No vehicle lien release
HSBC cashes QVC payments but HSBC is not QVC servicer
HSBC fails to pay escrow for taxes, insurance

Texas
Alleged improper billing and application of payments
Customer did not receive statement(s)
First statement arrives late, has late fees
Payment confirmation number has no bearing on when payment might be applied
Missing statements, late fees
Told phone payment fee would be waived but charged the fee anyway
Claimed customer signed up for electronic bills
Said customer signed up for insurance but customer did not
Charged late fees and over-limit fees when paid on time
Alleged shady debt cancellation fee
HSBC allegedly careless and rude
Denied student loan after incorrect credit report entry
Security hold on new credit card humiliates customer

Utah
Cannot pay online, fee packing
Could not do wire transfer without arbitrary restrictions

Vermont
No complaints on file

Virginia
Alleged policy violations, no severance package, fired
Online website only has quick-pay option with extra $15 fee
$20,000 in fees packed into adjustable rate mortgage loan
Will not close Orchard Bank account
Paid entire balance in full, then got another bill and balance due
Mortgage collection calls, ARM has late fees, run-around

Washington
HSBC reports closed paid off account as 120 days late
Alleged equity stripping
Disregarded disability status, knew fixed payment would be unmanageable
Alleged abuse of fixed income MS victim
Web address on back of credit cards does not work
Interest free promotion negated
Motorcycle financing no-interest negated, daily interest charged
Alleged threatening phone calls form mortgage collections after account already paid
Online payment website does not work

West Virginia
Paid entire balance in full, then got another bill and balance due

Wisconsin
Alleged live check fraud turned over to state attorney general

Wyoming
No complaints on file

Here is a complaint submitted by a customer in Tennessee. It is a fitting way to close our annual report, as it gives the reader clear insight into delaying tactics and the mindset at HSBC Finance Corporation. Here is the complaint, as it was received on December 11, 2007:

“I sent in an overnight auto payoff to the overnight address listed on my invoice. Included a letter requesting specific instructions be followed like; overpayment is included so please overnight my Title once it is prepared. Overnighted my payment on the 3rd and called on the 8th. They had no record of my payment.

The CSR assured us they would find it and post it as of the 6th, the day showed as received on our copy of the post return receipt. On the 9th they found and posted our payment but on the 8th, not the 6th as received. CSR nor managers would back date and post the payment to the 6th. Asked them to please follow our instructions and use the extra money we paid to overnight the title as soon as it was ready. On the 12 HSBC sent me a DHL shipment and 5 hours later cancelled it. I received these shipment and cancel notifications from DHL through e-mail. I suspect they were shipping my title overnight (as requested and paid for) and then cancelled for some reason. Several days later I made inquiry again and was told that my title was mailed by regular US mail with NO regard for my request. Decided to escalate the issue and asked for the CSR’s manager. Of-course his english was terrible but we were able to communicate.

I explained the entire issue as related above and when it was his turn he blamed it all on me. He stated the payment was never lost and was applied as supposed to be no matter what the previous CSR stated nor the fact that I had proof of payment to the proper address on the 6th. He said that I should have indicated on the envelope “Overnight Payoff Payment” even though the back of my invoice stated nothing about adding this information to the front of the envelope. Regarding my included written request to overnight my title when available and to use my overpayment of funds to overnight it, the manager stated that instead of sending a letter I should have called.

He says they are told to NOT pay any attention to written instructions included in payments. Not happy to be hearing his response to my complaints of service I asked him for the phone number to the customer complaint section. His response was that I could not telephone them but rather I had to write. Explaining to them that my written words seem to be ignored by HSBC, I again requested a phone number. He refused so I stated fine, I would call corporate instead. He then hung up on me.

I called HSBC corporate and spoke with a secretary who asked how my complaint should be directed, I stated it was with Finance, Titles, Customer Service and Payment Section. She then transferred me to HSBC auto that, of-course, did not answer and required a message be left. I left an urgent call back message without stating that it was a complaint request and of-course they never returned my call.

After about 25 days I started worrying about the refund they owed me since they did not utilize my refund monies as requested. I called on the 29th and was told my refund would be issued 30 days after final payment date. After all they had now put me through including a manger hanging up on me, I find they are adding insult to injury by keeping my money for 30 days with no interest payment. They do not mail a title until they have a complete payoff payment so why hang onto any overage money for 30 days? I called again the following month on the 5th. They said overage payment would be mailed on the 8th, exactly 30 days after last payment. I called again on the 11th and they said that it was mailed out on the 10th, 32 days after final payment. I am still awaiting my over payment.

The irony lies in their customer service phone number message that says they provide “World Class Service.” Yes, as you can see from this post, you will receive world class service from HSBC auto, but it will be service that is considered OUT of this world!”

Household – HSBC Watch thus concludes the compilation of HSBC complaints for 2007. While we recognize that all major banks receive complaints only two major lenders have been charged with predatory lending. They are Household International and Ameriquest. Household International is still in business as HSBC Finance Corporation, and thus deserves to be reported and monitored.

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