Complaint / review text:
I too, am a recent victim of HSBC.in August of 2004, I refinanced my home with Homeowners Loan Corp, who immediately sold my loan to HSBC. I have heard Homeowners Loan Corp may be related to or a subsidiary of HSBC, but I don't know for a fact this is true.
Nearing 1 year of payments, HSBC told me there had been an shortage in my escrow acct. They continously blamed increases in either my county taxes and/or homeowners insurance. Research determined neither my taxes or insurance had been increased enough to substantiate the $250 per month increase in my house payment, which they demanded.
Further research indicated Homeowners Loan Corp (though I'm guessing it was really HSBC, after reading all the other Ripp-Off reports) had not included enough money in my escrow for my homeowners insurance payments. We had agreed to spread the additionally required escrow payment over a 3 year period to help ease my financial pain.
I sent them the required money to bring my escrow acct back up to the proper level, and hoping to lower my payment. But that did not work & the payment was not lowered. I have no idea why that didn't help.
For the last year I have been struggling to make approx. $900 house payments. (It takes me 3 paychecks to save enough money for my payment!)
Last week I received notice from HSBC that my fixed 2 yr arm is up on Oct. 1 and my payment will jump from the fixed 7.5% rate to an astounding 13% (my cap is at 13.6%) and my next payment due on Oct 1 will be in the amount of $1,018.00.
I am in a panic to refinance again with another company. But am stuck, because this has damaged my credit, due to the late payments during the last 6 months. No one else will touch me. I am very hesitant about talking to HSBC about refinancing again, but may have no other choice.
How can they do this? Obviously, there is not much I can do to fight the raise in the interest rate. Though I think the jump was horrendously unfair. But if someone truly screwed up the figuring of my escrow account. Why do I have to pay for the fact they don't know how to run a calculator or do their jobs accurately? (I don't employ idiots. Maybe they shouldn't either!) Why would HSBC buy a loan that they never ran the numbers on? Wouldn't they check the figures to verify accuracy?
I have lived in this same 20 yr. Old manufactured home for 12 years & its damn sure NOT worth $1018.00 per month! After reading all of the other Rip Off reports. I am also wondering if my appraisal was correct.
I also have problems dealing with people in India via phone, that barely speak English. They are rude & don't help the situation & get angry when I ask to speak to someone that speaks English. Whats up with that?
My original thoughts were that I just got caught up in a bad situation, by bad luck of the draw. But after reading all the other reports, I am convinced HSBC are money hungry scam artists. I will do everything possible to refinance elsewhere!
Someone needs to stop them!