I co-signed for my daughter for a ford explorer on 5/7/2004, she traded in her 96 chevy cavalier for the vehicle through Household Auto Finance, aka HSBC Auto Finance.
When the second monthly payment came due, we started receiving phone calls repeatedly. My daughter had showed me the receipt of the money order, and they repeatedly continued to call. Til today, it is a year later, we are still receiving phone calls, in April or May 2005, HSBC sent the contract to a 3rd party collections, and repossessed the vehicle.
HSBC Auto Finance then sent a Modification agreement to me, stating, that if we want the vehicle back, it would take $625 and sign and fax the modification agreement. We sent $625 via western union, and faxed over the modification agreement as stated in the modification agreement. We had to drive to Kansas City a 3 hour drive to get the vehicle back into our possession.
The Repo Department at HSBC, and the modification agreement both stated that the $625 and signing the modification would bring the vehicle current and the new modification due date would not start until June 1, 2005.
My daughter had started sending the payment via Money Gram/Western Union so HSBC could not claim they were not receiving payment. We have paid on the vehicle for a year and 2 months now, and the amount owed on the vehicle is still up to $11,000. When the original amount after the trade in of the cavelier was only $10,722.50.
Today we are still receiving anywhere between 3-5 phone calls a day (sometimes more), stating that we are past due, remind you we have signed and went by the modification agreements terms. And paid the $625, and the payment was lowered from 312/mo to 209.48/mo.
We made payment in May, a month in advance of the new agreement, and they are continuously calling us stating that we are late.
We have informed them on each phone call we answer that they are being recorded due to the fact they are still calling, knowing they have received payments on time. We have 5-6 tapes front and back recorded messages between us and the company.
Today they (HSBC Auto Finance) called July 11, 2005, a Gentleman spoke to my daughter Dawn, and my daughter informed him that she was recording him, and he gave us some pretty interesting information.
He (Anad) a collection department rep., said there has been 3 payments that have not been going toward the principle nor the towing fees.It was going toward interest. Which he too found it very interesting, since we had signed and agreed to the modification terms.
The towing fees were to be placed on the remaining balance of the balance owed on the vehicle. Which was a verbal agreement between the Repo Rep (Tamiko Little) who was working our contract in the Repo Department, who was also in charge of the modification agreement.
We have called every department, been harrassed daily on the phone, and getting the run around when we call to get the matters fixed.
I hope that the people who read these ripoff reports will think twice before doing any dealings with this bank.
Also, around the time I co-signed for my daughter, someone has been fraudulently using my name and social security for cellular phones. I believe that somewhere along the line of my buying the vehicle, my identity has been stolen, from HSBC Auto Finance.
I reported the usage of my social security and called the company who was sending me bills, and the person using my identity was out of Colorado. Where some of the salesmen were from at the place I bought co-signed for my daughter.
So buyers Beware! Don't settle for just any company, do research, because its hard to find a lawyer to deal with cases like this!
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