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Report: #374545

Complaint Review: HFC HSBC - Mesa Arizona

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  • Reported By: Phoenix Arizona
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  • HFC HSBC 67 N. Dobson Rd. Suite 111, Mesa, AZ. 85201 Mesa, Arizona U.S.A.

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September 13, 2008


Arizona Department of Financial Institutions and all in CC list.
2910 North 44th Street, Suite 310
Phoenix, Arizona 85018

RE: Loan number: xxxxxxxxxxx HFC-HSBC
Predatory Lending Practices
Misrepresentation of lending programs
Failure to provide copy of credit report used as basis for refinance
Bad faith statements to secure mortgage loan
Failure to execute promised lending programs
Failure to credit charges for making on time online debit payments
Failure to return calls, avoiding contact


To Whom It May Concern:

Household Finance Corporation solicited a refinance loan to assist in paying my medical expenses from two major surgeries left after insurance. The representative and manager confirmed as a Household credit card holder, the program would get me a good loan, resolve my issues, and put me into a program that would reward me with automatic interest reduction of .25% each year if my payments were made on time. Further that my loan could be rewritten every couple months as my credit score increased until my loan was the lowest possible rate and payments around $600.00 to $700.00 per month, for a $150,000.00 loan which would allow me to keep my home, with payments I could afford on a retirement income. I purchased this Condominium in 2002 with an FHA loan.

Household Finance Corporation, a division of HSBC Bank USA, N.A. processed a loan based on a credit score from Equifax they cannot produce. HFC representative Gary Rushton claimed the document was shredded, when in fact they are able to produce subsequent credit reports and FICO scores since making the loan. The loan was made with HFC claiming of a credit score of 572 and I was a requested to NOT pull my own credit report as it would reduce the score. Within a few days of the loan closing, dated 7-25-2007, before any payoff checks were received by creditors, I pulled an Equifax score August 2007, which HFC claims they use exclusively, and my score was 656. See Exhibit A which displays my FICO, the dips are medical collection. Some medical were paid using credit cards, to keep my score up, the loan was not rewritten, the prepayment not released. I pulled my credit score on the recommendation by HFC that I monitor my credit score and notify them when the score increased to 660 whereby they stated they would reprocess the loan at minimal charges of a couple hundred dollars, and reduce my 10.785 % interest rate, lower my payments putting me into a preferred customer program and reducing me from a 40 year loan to a standard 30 year loan. Even when my score was near 700, a score that should have had a rate of 5-6%, there were more excuses.

Page 2 of 6

HFC also applied my equity to credit card account payoffs, when in fact I had requested medical bill payoff from two recent major emergency surgeries, with the remainder to credit cards. The representatives explained that paying off my credit cards would drive my FICO score higher, and faster. Of course with the new loan, and convenient side credit line of $1,800.00 they made at a very high rate of 29.09 % my credit score dropped by over 30 points. But I got it back up, and up, and up, so they would get me a rate and terms I could afford, not payments that exceeded 60 % of my NET income. Payments I told them I could not afford and they told me not to worry as the loan would be revisited and revised in a couple of months when my FICO score came up.

The side credit line loan was made of course predicated on the rewriting of the loan within a month or two that would pay that loan off, and release my $7,737.23 prepayment penalty to pay off my medical bills. I had stated that I would not accept a prepayment penalty when they solicited me for the refinance.

Upon seeing the prepayment penalty in the loan papers while signing, the interest rate 10.71 %, and term (40 years) I said NO and prepared to leave the office. The escrow person/notary asked me to wait while she brought the representative and office manager into the office. She left while they explained this was only temporary and would be released and the loan rewritten without the prepayment and at a lower rate and payments as soon as my score came up! The HFC representative and Manager said it was best to pay off the credit card and revolving debt to raise my score faster for the rewriting of the loan.

I believed in their sincerity, legitimacy and honesty, and continued to sign the papers when the escrow or title person returned to the room. It later became apparent HFC employees will say anything to make a loan and meet their monthly quotas, and after all it was the end of the month!

When I discovered my true credit score 656 a few days after the loan closed, and called to have the loan rewritten I was told it could not be rewritten as it would make no change in terms until my score reached 660 or higher. Understand that the payments to credit card companies had not posted to any credit reporting agency. From all the research I can find 80 90 points on a credit score makes a huge difference, not NO difference. Not getting return calls from the representative, Gary Rushton, I contacted the branch manager who helped to convince me to sign the papers, explaining my dilemma with the whole process, HFC deciding who to pay off, and no return calls. Further, I explained that they told me it was the best way only to have the branch manager make the statement we are not credit counselors.

I then began the process of monitoring my own credit, specifically Equifax, who HFC claim they, use exclusively. I also engaged an attorney to negotiate my medical bills and help keep my credit report clean and free from medical bill collection. In a couple months, when my Equifax score exceeded 680 and my other CRA scores were even higher, I again contacted the local office only to be informed the rate would still be over 10% and they would not release my prepayment penalty for use toward my medical bills. Upon asking why Mr. Rushton explained the company lending guidelines had changed, but I was not applying for a NEW loan, just a revision.

Page 3

I was then instructed by Mr. Gary Rushton to contact an independent mortgage broker and obtain a good faith loan offer and the underwriters would have to match that offer. I did and it came back in one day with a 686 credit score, my offer was 6.5% at 80% on the $160,000.00 appraisal from HFC, and 9 % on a 20% second mortgage both for the term of 30 years. See Exhibit B & B-1. Payments including my HOA dues, and my Property Taxes were almost $300.00 less a month then from HFC on the mortgage alone. At this time my credit cards were not maxing out either. I presented a printed copy of this loan offer to HFC to be told it was not the same because it contained a 2nd mortgage! I explained I was not asking for a 100% loan from HFC only for them to execute Good Faith rewrite the loan as they promised they would at a lower rate, lower payments, and release my prepayment penalty. HFC continued to stall until home prices dropped making my $160,000.00 appraisal obsolete.

I was then told to contact the parent company, HSBC and apply for a loan. Again doing what was asked of me, and spoke with a representative who said she would review my current loan and call me back, she never did. When I tried to call her I was told my account and information could not be found and no one could help me!

Going back to HFC was told to wait for their new HUD program coming in January. Calling every month was told still not available but coming. Meanwhile I am a 61 your old single man trying to live, making payments that exceed 60% of my net income, using credit to make ends meet, heading for disaster and my pleas for them to execute what they promised fall on deaf ears. I asked for the District Manager but they won't have him call me or tell me how to reach him.

It was never disclosed there was a charge of $10.00 to make an online payment on the due date or before. I was told this would be credited it was not, and never has been. This charge is for both payments to the main mortgage of $1,312.20, and my credit line payments of $75.00 to $85.00. I have a Household Finance credit card, and have had for years, make payments on line and have never been charged to make a payment! No company I have ever made online payments to has ever charged for online payments unless they are late. My belief is that HSBC and HFC wants the use of USPS mailed payments so they claim they did not receive it in time and charge the late charge. Paying on line is not posted for several days later so they can say you did not pay on time on their internal scoring system. I have proof of this in my bank statements and the on time payment internet receipts.

Upon investigative research it appears that Household and HSBC have continued their predatory lending practices but changed their strategy. This was noted in their DFI settlement of 2002 in Washington State, and several other lending practices lawsuits settled or pending.

When it comes to taxes, well of course the loan was to be rewritten and an escrow account would be set up to take care of those. I was hit with a delinquent tax bill I had to borrow from my 401K to pay. In a month the first half of another tax bill. The fact is there is no more money, no more credit to fall back on. I had to make a choice which I advised HFC of. My medicine and living needs, or a house payment, I chose to live, and get the medications I have been doing without, and those I needed to support my diabetes and high blood pressure, rather than pay my mortgage.

Page 4

I have had to use credit to get some medicine, pay outrageous gas prices to commute to work, and make ends meet. Now my credit is almost maxed, HFC said as long as I make enough money to make the payments they can't help me, even if I have to sacrifice medicine and basic living needs. I have exhausted my pleas to HFC and HSBC. Without a doubt they will take my home now, my security for retirement. Please stop them from doing it to someone else. I have missed my first payment since this HFC nightmare began. Every payment to this date has been made, on time. It is probably too late to help me, but for all that is right, and fair, stop them from hurting others, and taking their homes through deceit and fraudulent statements.

When looking up the definition of fraud, and deception, it appears that HFC and their representatives clearly have earned these two terms.

fraud
1 a: DECEIT, TRICKERY; specifically : intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right b: an act of deceiving or misrepresenting : TRICK2 a: a person who is not what he or she pretends to be : IMPOSTOR; also : one who defrauds : CHEAT b: one that is not what it seems or is represented to be
synonyms see DECEPTION, IMPOSTURE
deception
1 a: the act of deceiving b: the fact or condition of being deceived2: something that deceives : TRICK
deceptional \-sh?-n?l\ adjective
synonyms DECEPTION, FRAUD, DOUBLE-DEALING, SUBTERFUGE, TRICKERY mean the acts or practices of one who deliberately deceives. DECEPTION may or may not imply blameworthiness, since it may suggest cheating or merely tactical resource . FRAUD always implies guilt and often criminality in act or practice . DOUBLE-DEALING suggests treachery or at least action contrary to a professed attitude . SUBTERFUGE suggests the adoption of a stratagem or the telling of a lie in order to escape guilt or to gain an end . TRICKERY implies ingenious acts intended to dupe or cheat .

I want HFC-HSBC to execute the following, not only to me but everyone who is in the same situation their predatory practices have affected or ruined...

1. Rewrite the loan at a standard competitive rate, for a standard 30 year term, release my prepayment penalty based on my score as of this date of the loan or upon my request a few months later. Equifax 686, TransUnion 700.
2. Refund the excessive interest charged over what the standard rates were at the time of my loan based on my real credit score.

Page 5

3. Refund the $10.00 charges for making a payment on line that I use to provide proof of on time payments via their online payment confirmations.
4. Stop their predatory practices to consumers who trust in what they promise, and can't or will not provide.
5. Cease and desist their practice of coercing customers into signing agreements based on promises they do not intend to keep or can't keep, but as a representatives of the company are liable for. Fined by the DFI and Attorney General for continuing their predatory practices.
6. Provide a list of loans with contact information to the DFI, State Attorney General, or other enforcement agency so those poor consumers can be contacted and their loans rectified if they were taken advantage of, and victims of fraud by HFC-HSBC. Individuals involved with there predatory lending practices and fraud be reprimanded to the extent they will never do it again. Those that lost their homes are compensated so they can start again with a lender who respects the consumer and honestly cares about their welfare and future.

Finally in an attempt to find any help for me and others like me in this situation, I am contacting every government, regulatory agency, and news agencies. If you can help, if you can expose, if you can reprimand please do so. Yes, I have contacted HFC-HSBC again, see Exhibit C.

Sincerely,

MICHAEL D. xxxx

With hope and prayer that someone on this list will do something to help me and others like me, and protect others from these lending predators.

CC: Arizona Department of Financial Institutions
2910 North 44th Street, Suite 310
Phoenix, Arizona 85018

Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, N.W.
Washington DC 20580

HFC Branch
67 N Dobson Road Suite #11
Mesa, AZ. 85201

Corporate Headquarters
2700 Sanders Road
Prospect Heights, IL 60070

HSBC Bank USA, N.A.
One HSBC Center
Buffalo, NY 14203

Office of the Attorney General Terry Goddard
1275 West Washington Street
Phoenix, Arizona 85007



Page 6

Maricopa County Community Legal Services
305 S. 2nd Ave.
Phoenix, Arizona 85036-1538

Nhsphoenix, Inc.
1405 East McDowell, Suite 100
Phoenix, AZ 85006

Association of Community Organizations for Reform Now
1018 W. Roosevelt Street
Phoenix, Arizona 85007

Arizona Department of Corporations
1200 West Washington
Phoenix, Arizona 85007-2996

United States Department of Justice
Antitrust Division New Case Unit
950 Pennsylvania Avenue
Washington, D.C. 20530

Ted Downing State Representative
1700 W. Washington, Room 334
Phoenix, Arizona 85007

David Bradley State Representative
1700 W. Washington, Room 337
Phoenix, Arizona 85007

Gabriella Giffords State Senator
1700 W. Washington, Room 314
Phoenix, Arizona 85007

Arizona Republic Editor
200 E. Van Buren Street
Phoenix, Arizona 85004

Better Business Bureau
4428 N. 12th Street
Phoenix, Arizona 85014-4507

CNN Lou Dobbs Tonight
1 Time Warner Center
New York, New York 10019

Gary Harper 3 on Your Side
5555 N. 7th Avenue
Phoenix, Arizona 85013

Michael
Phoenix, Arizona
U.S.A.

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This report was posted on Ripoff Report on 09/19/2008 08:50 PM and is a permanent record located here: https://www.ripoffreport.com/reports/hfc-hsbc/mesa-arizona-85201/hfc-hsbc-fighting-back-mesa-arizona-374545. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#3 REBUTTAL Individual responds

HSBC- Mesa - The whole story

AUTHOR: Gary - (U.S.A.)

POSTED: Thursday, June 18, 2009

Michael Rose, the consumer that filed this report is dillusional and now that HSBC has imploded I will explain why.

Desperate and seeking assistance I worked for months to secure a decent loan for this person. Due to his past credit experience, Mr Rose was difficult to get qualified and after several months a program that he AGREED to was selected by him. All RESPA and Truth in Lending procedures were followed. All documents were disclosed. All options were explained. All terms were fully explained- repeatedly.

After securing a loan and paying all the debt that was allowed, I did explain to him that he needed to watch his spending and work to repair his credit. He apparently was involved with many attorneys and litigating many "wrongs" that were not his fault.

When Mr Rose re-incurred his past debt and faced with a declining market, it became apparent that he would not be able to refinance. I still continued to assist him all that I could and gave him several avenues to pursue.

What Mr Rose failed to report is the following. In an effort to assist him and well before the decline of the banking industry, HSBC voluntarily wrote down his loan and provided him with several avenues to assist him. Of course he never reported that and in my opinion he didnt deserve it. HSBC gave him everything he wanted.

His allegations are false, misleading and at the very least insulting. One need only look at public records to see his activity. Sir - shame on you...

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#2 REBUTTAL Individual responds

HSBC- Mesa - The whole story

AUTHOR: Gary - (U.S.A.)

POSTED: Thursday, June 18, 2009

Michael Rose, the consumer that filed this report is dillusional and now that HSBC has imploded I will explain why.

Desperate and seeking assistance I worked for months to secure a decent loan for this person. Due to his past credit experience, Mr Rose was difficult to get qualified and after several months a program that he AGREED to was selected by him. All RESPA and Truth in Lending procedures were followed. All documents were disclosed. All options were explained. All terms were fully explained- repeatedly.

After securing a loan and paying all the debt that was allowed, I did explain to him that he needed to watch his spending and work to repair his credit. He apparently was involved with many attorneys and litigating many "wrongs" that were not his fault.

When Mr Rose re-incurred his past debt and faced with a declining market, it became apparent that he would not be able to refinance. I still continued to assist him all that I could and gave him several avenues to pursue.

What Mr Rose failed to report is the following. In an effort to assist him and well before the decline of the banking industry, HSBC voluntarily wrote down his loan and provided him with several avenues to assist him. Of course he never reported that and in my opinion he didnt deserve it. HSBC gave him everything he wanted.

His allegations are false, misleading and at the very least insulting. One need only look at public records to see his activity. Sir - shame on you...

Respond to this report!
What's this?

#1 REBUTTAL Individual responds

HSBC- Mesa - The whole story

AUTHOR: Gary - (U.S.A.)

POSTED: Thursday, June 18, 2009

Michael Rose, the consumer that filed this report is dillusional and now that HSBC has imploded I will explain why.

Desperate and seeking assistance I worked for months to secure a decent loan for this person. Due to his past credit experience, Mr Rose was difficult to get qualified and after several months a program that he AGREED to was selected by him. All RESPA and Truth in Lending procedures were followed. All documents were disclosed. All options were explained. All terms were fully explained- repeatedly.

After securing a loan and paying all the debt that was allowed, I did explain to him that he needed to watch his spending and work to repair his credit. He apparently was involved with many attorneys and litigating many "wrongs" that were not his fault.

When Mr Rose re-incurred his past debt and faced with a declining market, it became apparent that he would not be able to refinance. I still continued to assist him all that I could and gave him several avenues to pursue.

What Mr Rose failed to report is the following. In an effort to assist him and well before the decline of the banking industry, HSBC voluntarily wrote down his loan and provided him with several avenues to assist him. Of course he never reported that and in my opinion he didnt deserve it. HSBC gave him everything he wanted.

His allegations are false, misleading and at the very least insulting. One need only look at public records to see his activity. Sir - shame on you...

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