Household HSBC Watch

Facts about Mortgage Servicing, courtesy of the Federal Trade Commission

You usually must be notified at least 15 days before your loan servicing is transferred to a new servicer.

During a 60-day grace period, you cannot be charged a late fee if you mistakenly send your mortgage payment to the old servicer and the new servicer cannot report to a credit bureau that payments were late.

Write to the servicer if you think there are problems with your account. Mortgage servicers must respond promptly to written inquiries.

Do not subtract any disputed amount from your mortgage payment. The servicer may consider this different amount to be a partial payment and declare the mortgage in default.

If you believe the servicer has not responded appropriately to your written inquiry, contact your local or state consumer protection office. You also should contact the Department of Housing and Urban Development (HUD) to file a complaint under the National Affordable Housing Act. Write: Office of Single Family Housing, HUD, Room 9282, Washington, DC 20410.

You also can send your complaint to the FTC. Write: Correspondence Branch, Federal Trade Commission, Washington, DC 20580. Although the FTC generally does not intervene in individual cases, the information you provide may show a pattern of possible violations of laws that are enforced by the Commission.

You also may want to contact an attorney to advise you of your legal rights. Under the National Affordable Housing Act, consumers can initiate class action suits and obtain actual damages, plus additional damages, for a pattern or practice of noncompliance. In successful actions, consumers also may obtain court costs and attorneys fees.

If the government had similar regulations that made it easier when your credit card contract was transferred from GE to HSBC - Household retail services it would be greatly appreciated.