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HSBC Withdraws Settlement Offer. What Can We Do About It? – Scott

“Dear Steve,

My wife’s HSBC credit card balance was about $4,600.00. She received a letter in early February, 2010, saying that if she made a payment of $2721.00 (about 60%) they would write off the remaining $1900.00 (about 40%). The letter stated they needed the payment by February 17, 2010.

My wife called HSBC and told them she would like to take them up on their proposed settlement, but she could not authorize such a payment until February 28 when we were to receive our Federal Income Tax Return. The representative said that would be fine and made arrangements for the $2721 to be automatically withdrawn from our checking account on February 28, 2010.

A couple days before February 17 a letter arrived in the mail from HSBC informing my wife to make sure the funds were available in our account to be withdrawn on February 17th. In a panic, my wife called HSBC and the representative assured her that the date on the letter was a typo and that everything was set for the settlement to be withdrawn on February 28th as planned. On February 23 we received a confirmation letter from HSBC stating that the settlement amount would be withdrawn on February 28 as agreed upon.

Yesterday, March 17, 2010, my wife received a monthly statement from HSBC, thanking her for her payment of $2721.00, but instead of showing the account closed and with a zero balance as agreed upon, it shows the account closed with a remaining balance of about $1,900.00. My wife called HSBC and the first representative said there was nothing he could do(he claimed she had made a settlement for a withdraw on February 17th and since the payment was late the settlement is void), so my wife asked to speak with his supervisor. That lady said there was nothing she could do (despite she said, that there are notes on the account regarding my wife speaking with both representatives prior to the letter from February 23rd) and told my wife she would have to speak directly with the settlement department. She gave my wife the 800 number and said that the settlement departments hours are Monday thru Friday, 12-4PM (central time). My wife is an elementary school teacher and is going to have
to try and contact HSBC during her lunch hour today since the account is in her name and I’m not listed as an authorized person.

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We have the documentation that HSBC agreed to a settlement and now they are trying to renig on it…what is our best way of resolving this situation?


Dear Scott,

Do you have anything in writing from HSBC that the settlement offer had been modified for the 28th?

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

1 Comment

  • Hi, I was wondering if you have that 800 number to their settlement department? I need to contact them for a settlement. Thanks.

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