Consumer complaint received 2017-02-27
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: FL
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Settlement process and costs

Complaint:
Approximately 20 years ago, I took out a second mortgage with HSBC for {$42000.00}. In an attempt to eliminate this long-standing debt, I reached out to HSBC to try to negotiate a settlement. HSBC responded with the following options which were very unfavorable to me which included a : 1. Hardship settlement 2. Short Sale 3. Deed-In-Lieu Consumer Resolution Attempts : I called HSBC and informed them that this loan was not a first mortgage but was a second mortgage. The customer service representative was extremely rude and told me that I would have to sell my house and pay HSBC. 
I then asked HSBC for a loan payoff and was shocked to learned that the loan balance after 20 years of payments, all made on time, was {$39000.00}. See Attachment II. 
This meant that in 20 years of payments that the loan principle balance had only been reduced by {$3200.00} or 8 % of the original principle balance. I was outraged to say the least. I called HSBC to ask them " how could it be that my loan balance was still so high after 20 years of payments ''? I also asked for an amortization schedule which I have not received. In total, I have spoken with the XXXX-following individuals with HSBC and neither of them had any answers for me. 
1. XXXX XXXX XXXX - Mortgage Service Specialist - XXXX, ext. XXXX 2. XXXX XXXX XXXX - Mortgage Services Specialist - XXXX 3. XXXX XXXX - Mortgage Service Specialist - XXXX Each of these individuals have been mediocre at best in terms of helping to understand what is going on with this loan with absolutely no ability to bring resolution to this issue. 
XXXX XXXX said, " that it 's out of his hands and is in the hands of the research department '' and that someone in the research department would be reaching out to me soon. I asked XXXX XXXX for the name and number of the contact person in the research department and was put on a brief hold. Upon XXXX XXXX ' return to the phone, " he said that he did n't have that information although he clearly stated moments before that someone from the research department would be calling me ''. 
XXXX XXXX called me a few days later as a follow up to my call to XXXX XXXX. I specifically asked XXXX XXXX about the status of my loan amortization request. XXXX XXXX stated, " HSBC does n't provide loan amortization schedules ''. I was outraged. XXXX XXXX acknowledged receipt of my request for a loan amortization schedule in HSBC 's system and then stated, " we do n't provide those ''. 
My last call from HSBC was from XXXX XXXX on yesterday, Friday, XXXX XXXX, 2017. She said that a manager would be calling me on Tuesday, XXXX XXXX, 2017, but could not or would not provide me with any further details regarding my request for information on this loan. 
HSBC Violations : As a consumer, under Regulation XXXX XXXX Code of Federal Regulations - XXXX - Request for Information, I am entitled to an amortization schedule regarding this loan which HSBC has refused to provide. The Code specifically states that a servicer must " timely '' comply with the borrower 's request for written information, which HSBC has refused to. I submitted a request for a loan amortization on XXXX XXXX, 2017 which I have not received. ( See Attachment XXXX ). 
In addition, HSBC is also in violation of XXXX XXXX XXXX XXXX XXXX regarding the way this loan was structured which does not allow for reasonable reduction of the principle amount borrowed over time and artificially keeps the borrower in debt where payments made are credited towards interest with no significant reduction in the principle amount borrowed over time. Once again, I 've been in this loan for 20 years with only an 8 % reduction in the principle amount borrowed.

Company response to consumer: Closed with explanation