Debt Relief Industry Sued or Sanctioned

Is HSBC Screwing Consumers in Debt Settlement?

According to some of my debt settlement friends with the AACC, this HSBC dirty trick is real and they’ve seen evidence of it.

It is alleged that HSBC has been setting consumers up to fail on their debt settlement programs, including those put forward by lawyers. The complaint says HSBC agrees to a debt settlement in installments and then when just a few payments are left to be made, HSBC refuses the remaining payments and goes back after the consumer.

In January of 2010 the Plaintiff, Chastity Bradley, through her attorney, entered into a settlement agreement with HSBC. HSBC agreed to accept $481 as payment in full and Chastity began making payments. HSBC cashed all the other payments except for the last one which they are alleged to have returned, rejected. HSBC then demanded the full balance even though a settlement agreement was in place and payments made. – Source

This case was filed by Bruce Warren, Esq., Brent Vullings, Esq., Warren & Vullings, 93 Old York Road, Suite 333, Jenkintown, PA 19046. 215-745-9800.

Has anyone else run into a similar situation? If so, post your comments below.


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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.

4 Comments

  • My husband and I are going through exactly as stated above I even have a letter from them stating that after 6 months of making the payments they wanted with thier modification than HSBC would make it permanent once our six months is up they deny making it permanent. IT’S WHAT I CALLED A MORTGAGE GAME! This is the worse mortgage company I have ever had to deal with. Once I stop making payments they come back with a solution a SCAM is what they are doing. I am now at my six months and once again they have denied making the payment permanent. They want me to pay more then 9 percent interest.

  • My husband and I are going through exactly as stated above I even have a letter from them stating that after 6 months of making the payments they wanted with thier modification than HSBC would make it permanent once our six months is up they deny making it permanent. IT’S WHAT I CALLED A MORTGAGE GAME! This is the worse mortgage company I have ever had to deal with. Once I stop making payments they come back with a solution a SCAM is what they are doing. I am now at my six months and once again they have denied making the payment permanent. They want me to pay more then 9 percent interest.

  • Steve,
    Thank you for getting this information out. Consumers and consumer protection agencies, should take note of this, since it directly affects hard working people that are doing all they can to make good on the agreement to pay.
    Let’s all remember that if a client is working with a reputable Debt Settlement company, that company has helped the consumer achieve a “Mutually Acceptable Settlement” which means it needs to be honored.
    Alex V

  • Steve,
    Thank you for getting this information out. Consumers and consumer protection agencies, should take note of this, since it directly affects hard working people that are doing all they can to make good on the agreement to pay.
    Let’s all remember that if a client is working with a reputable Debt Settlement company, that company has helped the consumer achieve a “Mutually Acceptable Settlement” which means it needs to be honored.
    Alex V

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