I had taken a loan out in the fall of 2005. I was in the middle of a bad divorce [like any are good] and needed funds for the attorney and just living. The original amount was $3000 payable in monthly installments of $127.23 for 36 months. I knew this was a high interest rate but the loan would be paid as soon as my divorce was final.
My statement for the closing date of 12/04 showed a balance of $2951.87. I mailed a check for $2500.00. My next statment for the closing date of 01/04 credited me with the $2500.00 payment, with $119.99 applied in the column titled "Interest, Insurance & Other Charges" with $2380.01 applied to the balance with a new balance of $571.86.in the column entitled "Payment due date" the date of 07/26 which indicated no payment was due for 18 months.
In February of on the 20th I sent a check and paid $100.00 on the account; an early payment since no payment was due until 07/26.
In March, statement date 03/04, my statement showed a balance due of $490.60 with no payment due until 08/26. Nothin was listed under the column entitled "Interest, Insurance & Other Charges".
Since my statements for the following months continued to show a balance due of $490.60 and no payment due until 08/26 I wasn't worried about making a payment until that time. At no time in the 18 month period did any statement I received showed any interest accruing, any penalties, any late fees etc.
On March 25, I decided to take care of what I owed and paid the account over the internet. HSBC was in the process of approving my online payment and I was informed I would be charged $10.00 Service Fee for the online payment. This pissed me off. No other company that I have done business over the internet has ever charged me a fee for an online payment.in fact, I believe, Companies prefer the online payment. I cancelled my payment and emailed them stating that I felt that it was just a "gouge" to the comsumer. Because of that, I decided to just wait until the payment was due.
In September of I realized I needed to pay this account. Not paying regularly, I did forget the August 26 payment. I was contacted by them and I explained that since I didn't have a payment due for such a long period of time that it was an oversight and wanted to pay off the account. I was prepared to pay the $490.60 and a late fee for the August 26th payment.
I was informed by the person (in fact I was like the other report and was speaking to someone from somewhere other that the US that spoke with a heavy accent) and was informed the total due was $720.34.
I asked how a balance of $490.60 grew by over $200 and was informed of penalties and fees. I was infuriated! No statment ever reflected fees or interest or anything, just the $490.60 balance due.
On September 21, the next morning after I received the collection call, I sent a payment of $208.78. When I recieved my next statement nothing was applied to the principal. The payment was refleced in the "Interest, Insurance & Other Charges" column.
Collections continued to call because they stated I was "Past Due". I refused to pay any more than $281.82. $208.78 $281.82=$490.60. My next statement showed of the $281.82 payment, $70.65 applied to fees and a balance of $279.43.
I know that is a long story but what it boils down to is this. How can a company for 18 months never show penalties. Fees, or anything additional being assessed to your account, and then when the payment is due, decide to charge you for what you were never informed of? If I had be informed as they were accrueing I would have paid much sooner! Their own statements stated I only owed $490.60.
It is unfair and poor business practice to not inform customers that these charges are accruing and that practice is illegal. I am disappointed in HSBC. This is a prime example of what is wrong in Corporate America.
I refuse to pay these fees, yet the foriegners with their heavy accent call every night. I always ask if they read their notes that the person who called last night left. The response from them is that it was noted that I have stated that I do not owe them anymore. I reply that no I don't and to have a good night.
Frankly, I will never pay. It is unfair! I probably would have paid the complete amount they wanted if only they had informed me they were charging such!
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