Consumer complaint received 2016-03-25
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: CO
Product: Debt collection
Sub-product: Credit card
Issue: Disclosure verification of debt
Sub-issue: Right to dispute notice not received

Complaint:
In XXXX I applied and was approved for my first credit card/line of credit which was issued by Household Bank on behalf of XXXX XXXX. After receiving the card in the mail I activated the card via the automated system and was surprised that my balance was far less than the actual approved limit. When I called customer service, they informed me that there was an annual fee and an activation fee which was automatically taken from the available balance when I activated the card. I was very unhappy with this information and was NEVER advised of this when I applied for the card. I instructed the credit card representative to cancel out the card account, as I was not willing to pay nearly half of the available credit limit before I had even used the card. I cut the card up and never used it, but was soon receiving notices that the account had not been closed and was delinquent. I realize now how these kinds of things can affect my credit history, but at that point I had no clue about how credit worked. I figured after a few years passed I would be cleared of this obligation due to the statute of limitations. Unfortunately, it appears that the debt was sold multiple times ( XXXX/XXXX/XXXX, XXXX/XXXX/XXXX and again on XXXX/XXXX/XXXX ). The current collector who purchased the paper on this debt on XXXX/XXXX/XXXX was granted a judgment on XXXX, XXXX XXXX in the amount of {$1400.00}. The documents filed with the court indicated that my brother, XXXX XXXX, had been served a Summons for me to appear in court on XXXX/XXXX/XXXX. I challenge the legality of that Summons as my brother was XXXX XXXX, in XXXX XXXX that entire week on high dosage of XXXX and passed away 2 days later on XXXX/XXXX/XXXX. I never received that Summons or had any clue there was a judgment hearing pending against me. Fast forward to XXXX XXXX and the creditor sent me a request for interrogatories. Since I had not ever received any notice of this judgment until that time, I assumed that the statute of limitations had already expired on the old XXXX XXXX account. At any rate, I filled out the interrogatories and sent them back to the creditor and thought I would hear something back with next steps from whoever was requesting that information. Instead a Notice to XXXX XXXX for Revival of Judgment was approved by the court on XXXX/XXXX/XXXX and I was not notified of that court decision until XXXX/XXXX/XXXX. On XXXX/XXXX/XXXX, my employer sent me notification that the court had again granted a judgment against me on XXXX/XXXX/XXXX. I was completely shocked, as I had never received ANY summons to appear in court which I thought was legally required. This whole process has been confusing and it seems extremely underhanded to serve a mentally XXXX person near death and never personally serve me at any point with a Summons to appear in court. I have grown a lot personally since XXXX and now realize how important it is to pay all creditors on time. I know I did n't handle the XXXX XXXX account properly initially and have no problem taking responsibility to paying an agreed amount to the original creditor. However, it seems predatory and fraudulent that the original debt could not have been for more than {$350.00} and now a creditor has been granted permission to garnish my wages for {$8600.00}. Please help me sort through the legality of this situation. Thank you in advance for your careful consideration in this matter.

Company response to consumer: Closed with explanation