HSBC Watch News Release Forum Index
Forum Name: - HRS Account
Topic Title: Co-signed for Aqua water softener
Tue Aug 16, 2005 4:18 pm
My husband co-signed for my mother on an Aqua (water softener) purchase. My mother had financial difficulties and was unable to continue making payments on her account. The bank went after my husband to pay off the account, if not it would go into collections. We paid it off with another credit card.
This company never showed it as paid off and it showed up on my husbands credit report which made his credit score low. We recently purchased a home with a very high interest rate due to my husbands credit report. This mistake has cost us dearly. We are very, very upset.
Thu Aug 18, 2005 9:08 am
The predatory cycle you describe is one that Household International invoked for years. It is questionable regarding whether or not HSBC changed anything, but reading your report indicates they did not. The cycle is simple - mess with your account, mess with your payments, drop your credit score, and then give you a high interest rate on your home mortgage because of it.
I often said that Household International wanted to drive everyone's credit score down until people had no option on a mortgage except Household predators - HFC, Beneficial, Decision One. Having said that, keep in mind that Eliot Spitzer, the New York Attorney General, wants to know if people like you were given higher interest home loans when they actually qualified for lower interest non-predatory home loans. HSBC, because of Household International, is one of the targets of Spitzer's probe.
You said:
Quote:
We paid it off with another credit card. This company never showed it as paid off and it showed up on my husbands credit report which made his credit score low.
HSBC, and Household International before that, states that customers cannot pay accounts with balance transfers, credit cards, or debit cards. This includes making payments or doing a payoff. For the past ten years Household International, HSBC Finance Corporation and HSBC - including subsidiaries - tell you they will take your credit card, and then they don't process the transaction. It happened to you. That is also predatory. Then they add late fees, past due fees, higher interest, and it could effect your other credit card interest rates.
In your case it was a water softener. It was also a co-sign account. Your intent was wonderful but the merchant aligned you with predatory financing through HSBC - in actuality the former Household International - where their slick ways and desire for profit hurt your family. All of the merchants listed on the bottom of this page do the same thing to their customers. It was a learning experience for you. Hopefully you can get a lower interest rate in the future.
We monitor customer trends for possible violations of Regulation Z and other possible illegal actions.