HSBC Slaughter Window by Opportunity, Not FICO

The following evolved into a dedicated page. Read “The HSBC Killzone” to see how this evolved.

A question often asked by those harmed and hurt by HSBC is how they determine who to hurt financially. Early in the investigation one could not determine if people were targeted by their credit scores. Common sense suggests those with lower credit scores and less disposable income were less likely to sue HSBC. Those with high credit scores and more disposable income were most likely to fight back. HSBC leveled the playing field with onerous binding arbitration, thus nobody is likely to sue. Still some fight back, although HSBC makes it very difficult.

If you have a merchant credit card such as a Best Buy card, or any HSBC credit card, you may find yourself at risk. The question is ‘Who Does HSBC Hurt Financially’. Worded another way people want to know how HSBC picks their targets. Which family gets a lower credit score after dealing with HSBC? Which people with HSBC credit cards head for financial ruin? The answer is that HSBC, through HSBC Finance Corporation, targets people by opportunity, not by their credit score. Trend analysis shows a ‘slaughter window’ which is defined as anything within one week of a balance due. Just like killing cows at the slaughter house HSBC Finance sends customers to the slaughter window by sending letters indicating when their interest free period is about to end. The shady part of these notifications is they DO NOT get to the customer until it is too late.

Keep in mind as we continue that HSBC Finance was once stained, sullied, embarrassed and bottom dwelling predatory lender Household International. Now the answers come into focus. In the past HSBC would quote a payoff, add $15 for a phone payment, take the payoff and the following month they would bill the customer for $15 plus all the interest due – a questionable and shady tactic at best. The customer did not know to add $15 more to the quoted payoff. Welcome to HSBC’s slaughter window. Today HSBC adds the $15 as a new purchase, further clouding the problem. Like leading customers to slaughter a combination of notices that arrive late and additional charges puts one at a disadvantage. Then consider the fine print of the HSBC Finance Corporation contract and there is little one can do.

A true definition of predatory lending is the lender adds fees, charges, unwarranted interest, etc., not because market imperatives drive the situation but because they found a way to get away with it. People once thought predatory lending targeted those with spotty credit. As you can see from our findings predatory lending by HSBC fits the definition, targets anyone with credit, and is based on opportunity. Do not give HSBC the opportunity to put you in the slaughter window. HSBC Bank USA, HSBC Finance, HSBC plc and their holding companies are truly still predatory lenders. For more see this actual customer report.

Additional: HSBC debtors, HSBC Collections, Binding arbitration, HSBC collateralized property, bankruptcy exemption, HSBC debtor, late fees

One thought on “HSBC Slaughter Window by Opportunity, Not FICO

  1. I am the person that wrote the complaint that inspired this article. I wanted to add new comments to my complaint, but I’m not sure what my user ID and password are, so I am commenting here with this:

    I called back as instructed yesterday. I got a hold of the person that was reviewing my wife’s records. She said management was reviewing it, and would contact me. No idea when though. I will give them the same daily courtesy calls they gave us, until this is resolved.

    The lady did for the first time, give us an amount she said the check should have been written for. The amount was for $32 more than we wrote the check. She said this was for additional charges and fees that were on the acocunt. I told her we had charged nothing else. She said correct, not since 2003. So I asked how there could be additional charges. The answer was very confusing. As every other conversation I have had with them has been.

    I told her I wanted management to call me because I wanted to get this resolved. I told her thanks for all her help, she has given me more information than anyone else ever has, yet I wanted to speak with someone that can make decisions.

    After I hung up, I got to reading the invoice again. I noticed the $32 was the monthly minimum charge. I also, for about the 30th time, read all the fine print under the payoff alert area on the bill. It states in there, reading through all the legal language, and after confusion translating, that the minimum payment must be made first, then the payoff amount.

    This is VERY VERY deceptive, and allows them to get most of their capital back for reinvestment, yet allows them to keep stacking charges and fees to the account, especially after someone believes they have paid off, and then starts to dispute the amount. It just buys them more time to keep stacking.

    I had an attorney look at the invoice, and pointed to the minimum payment area, and asked them, including the ripoff $15 check over phone fee, what I had to pay to clear my account. They said a total of $966.14, as I had paid. I asked them to re-read the bill, and all the fine print. It took them a few minutes to decipher the legal language, and they said they see why it took us so long to see and figure out.

    They agreed, it was very deceptive and poorly written. They said the bill should have been written clearly so a person knows exactly what to pay. They said this appeared to be purposely written this way, as to deceive customers and allow stacking.

    I plan on fighting this very hard because of this deceptive practice.

    Take your bill to an attorney before you pay it off. Make sure someone can actually read what it says, and can give you a correct payoff amount, because HSBC won’t. Even if you call HSBC, they won’t give you a correct amount. When they told us the $951.14 would pay the account off, they either didn’t know about the minimum monthly payment either, or flat out lied.

    At least when you go to a loan shark, they tell you “pay this exact dollar amount by this date, or we’ll break your legs.” HSBC says “pay us what you think you owe, and if it isn’t correct, we’ll bust your credit.”

    I’ll keep updating this as the saga unfolds 🙁

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