The HSBC Monitor

Companies are trying to make a profit on the backs of subprime lenders. A press release by one such company says “Officials at HSBC North America, parent of HSBC Bank USA, HSBC Mortgage Corp. and HSBC Finance Corp., say their average loss on sale at foreclosure is 20 percent to 25 percent of the loan’s value. With some of these larger banks like HSBC, Citibank and Chase looking at up to 500,000 problematic loans; the losses will reach the hundreds of billions if the proper steps are not taken immediately to hire the staff and/or outsource their Loss Mitigation services.”

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As we wrap up 2008 it is about time to close the office for the final time this year. Every year we reach this point, closing the books on another year with HSBC, and before that Household International. 2008 seems like a very bad year, when compared to the other ten years since we began.

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As I sit here reading a post I very quickly see that HSBC has a total disregard for the law, unless it works in the favor of HSBC. Here is an example:

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“It’s unfair” whined HSBC. “Just pay your damned bills” shouted HSBC employees to borrowers who also moaned “it’s unfair.” In China lawmakers tried to hold HSBC accountable for Lehman Brothers minibonds, while HSBC whined “It’s unfair.” Meanwhile Bernie Madoff got into HSBC’s knickers for $1 billion, so HSBC whined “It’s unfair.” HFC and Beneficial Finance branches of HSBC sold homeowners on the idea of adjustable rate mortgages, and borrowers later said it was unfair. Now it is HSBC’s turn again:

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At issue is a dispute over HSBC’s role in selling Kehman Brothers minbonds. Legislator Abraham Shek Lai-him openly wondered if HSBC had betrayed investors. “You made mud look like gold, and investors were lured,” Shek said. “You may not have been the designer of the plan, but you are an experienced bank, an international bank, you must have been aware that this was a product that could lead to the entrapment of retail investors.”

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Its clear that HSBC HATES the new “LEGIT” credit card rules that will take effect in 18 months. After all, the laws ban everything they do now.

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This report defines what happens inside HSBC, at HFC and Beneficial, as outlined in their branch policies and product line. This is how it is described by a potential customer: “This is the height of predatory lending. I am a customer of HFC. I made the mistake years ago and cashed a check they sent me at a rate of 25.6987. Not a real smart thing to do. After receiving about 50 calls to come into the office to get a “better rate” I told them to leave me alone and eventually the calls stopped. Now I am receiving almost daily calls to get a new loan for again a lower rate and lower monthly payment.

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I used to work for Household Finance. The live check is a way of Household Finance to identify that you are in financial trouble. If you cashed a check at 21% interest from an unknown bank in the mail, then you probably are having money problems. The process is then in effect to constantly upsell you, to a line of credit, an equity line, then eventually to get your first mortgage. Its done by playing with numbers showing monthly savings, saying if you consolidate your loans you’ll save money. Be wary because usually they include a proposal that consolidates your 4 year car loan over 25 to 30 years, which obviously shows a monthly savings. Its a company that preys on financially unintelligent poor people. By the way they will slip in insurance on top of their loans and credit offers, making the consumer think its not optional, when they are breaking the law with this deceit.

A reader sent this success story: “Lost mortgage due to HSBC Credit report - after a long fight - I WON and HSBC CHANGED.
Short story - HSBC Best Buy indicated they charged off my account in 1/05. I was never informed of this, brought the account up to date and it has been current for over two years. In 10/08 they reported to the credit bureaus that it was charged off. I called HSBC Best Buy and was told that they don’t have to inform consumers of what HSBC does.

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In this article you will learn about FFPM Carmel Holdings, or “How to lose a lawsuit by not showing up in court” combined with “Oh we did not have a license as a debt collector.”

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