Consumer complaint received 2016-06-01
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: NY
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
Beneficial continues to deny the assistance requested with our account and to compensate us for our time and the lack of customer service and the ongoing damage it has done to us. The following are the issues that have not been resolved : On XX/XX/XXXX Beneficial/HSBC erroneously sold our home mortgage to the XXXX XXXX XXXX Master Participation Trust by labeling our account as in default, and/or a distressed loan in trouble. Not only were we not behind in payments we were ahead. As soon as XXXX began servicing our loan we contacted them to let them know that false information had been provided on our account by Beneficial. When XXXX informed us in XXXX that we were behind in payments we called the customer service number and let them know this was not true and we lodged a complaint. They indicated at that time that Beneficial 's records were a mess and it would take time to sort things out. We had been trying to get Beneficial to correct their mistakes prior to them selling the loan to XXXX XXXX. They did not complete any work to address their mistakes. 

Question 1 : Why was our mortgage sold as a loan in default to XXXX XXXX in XX/XX/XXXX? 

Beneficial sent letters dated XX/XX/XXXX stating that we could lose our home because it was 30 days in default. They sent individual letters to both of us by regular mail and certified mail. They stated in these letters : " You can cure this default by making the payment of {$2200.00} dollars by XXXX/XXXX/XXXX. '' This is 15 days after they have sold the loan to XXXX. Clearly this is an bogus debt and an illegal collection. 
Question 2 : Why did Beneficial demand a payment of {$2200.00} after they sold the loan to XXXX XXXX? 

Question 3 : Where is this money applied to our account? 

In a letter dated XXXX/XXXX/XXXX XXXX XXXX of HSBC included records of our account that show the XXXX/XXXX/XXXX payment was made on XXXX/XXXX/XXXX. In a letter dated XXXX/XXXX/XXXX XXXX XXXX included a copy of a letter dated XXXX that states " There was a reconciliation completed on your account on XXXX/XXXX/XXXX. After the reconciliation was completed, your account was due for the XXXX/XXXX/XXXX payment and the remaining amount needed to complete this payment was {$1600.00}. The full payment for the XXXX/XXXX/XXXX due date was not received until XXXX/XXXX/XXXX. '' This is in direct conflict with the XX/XX/XXXX reconciliation, and the XXXX XXXX records referenced above that were sent post " XX/XX/XXXX reconciliation audit. '' Question 4 : Why was the XXXX payment erroneously applied to the wrong date in our account? 

Question 5 : Why were the reconciliations of our account ignored? 

Question 6 : Why did you tell the NYS Attorney General and the Bankruptcy Court that our payments were up to date and then tell us we were in default? 

At no time from XX/XX/XXXX to XX/XX/XXXX did anyone at Beneficial indicate that they had made an agreement with XXXX that XXXX would be responsible for all errors that Beneficial committed on our account. Finally in XX/XX/XXXX XXXX XXXX ( XXXX ) stated in a phone conversation that there was an agreement and that she would personally contact XXXX to make sure they held up their agreement. 

Question 7 : Why did Beneficial conceal the agreement they had made with XXXX from XX/XX/XXXX to XX/XX/XXXX? 

Question 8 : Please provide written documentation of the agreement made with XXXX XXXX and XXXX. 

A document is attached containing our payment history of our account with Beneficial. We need clarification on the following : Deferred Interest dates : XXXX/XXXX/XXXX, XXXX/XXXX/XXXX, XXXX/XXXX/XXXX, XXXX/XXXX/XXXX, XXXX/XXXX/XXXX, XXXX/XXXX/XXXX Deferred Interest sweep : XXXX/XXXX/XXXX, XXXX/XXXX/XXXX Further information in attached.

Company response to consumer: Closed with explanation