Quick Answer: This consumer complaint against HSBC/HFC doesn’t establish whether the company is legitimate, but reveals serious customer service issues including failure to provide mortgage life insurance cancellation documentation after a 2009 death claim. The consumer stopped mortgage payments on legal advice to force foreclosure proceedings and obtain required documentation from HFC.
Consumer Statement:
Upon my husband’s death in March 2009 I contacted HFC for directions on filing a claim against our mortgage life insurance. HFC informed me that I had no mortgage life insurance policy. Over multiple calls to HFC over the next several months I was informed that my deceased husband had cancelled our mortgage life insurance policy & had the payment refunded shortly after the loan inception and I would need to continue to pay the mortgage off in its entirety. To date I have been unable to obtain proof of this claim or to have my name changed to my remarried name on mail from HFC. In addition, since HFC refuses to use my current name, but continues to address mail to my prior & deceased husband’s name & use my current address for only the past 2 years most mail from HFC has not been delivered to me but returned to HFC.
Consumer Action Taken:
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I have requested, by certified letter twice & in multiple phone calls over the 2 years after his death, to be provided with documents of proof of the cancellation of our mortgage life insurance policy. I also provided copies of my husband’s death certificate along with my name change, current marriage license & change of addresses. On the advice of my credit union’s loan officer & a local real estate attorney have ceased making mortgage payments to HFC & continue to await foreclosure proceedings in order to force HFC to provide documentation of the mortgage life insurance policy cancellation. I am still waiting even though it has now been four years since my first husband’s death. I am no longer able to live in the house safely or continue to see to its care and would like to resolve this issue and move on with my life.
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Date This Problem Happened: March 26, 2009
State You Live in: Michigan
Race/Ethnicity: White
Age Range: 51-65
Total Amount of Fee Paid:
Company Name: Beneficial – HSBC
Company Address:
PO Box 1231
Brandon, FL 33509-1231
Company Telephone Number: 800-365-0175
Website of Company: beneficial.com
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