Consumer complaint received 2018-05-31
Product: Debt collection — Mortgage debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: HSBC NORTH AMERICA HOLDINGS INC. (NJ)

Predatory lending is any lending practice that imposes unfair or abusive loan terms on a borrower. It is also any practice that convinces a borrower to accept unfair terms through deceptive, coercive, exploitative or unscrupulous actions for a loan that a borrower doesn't need, doesn't want or can't afford. This is exactly what XXXX XXXX XXXX XXXX ( Beneficial ) is guilty of in the case of my now deceased parents, XXXX and XXXX XXXX. CFPBs job is to protect consumers from this type of abuse when it is reported. I ask that CFPB hold Beneficial, XXXX XXXX XXXX XXXX ( XXXX ) and XXXX XXXX XXXX  XXXX by XXXX XXXX XXXX XXXX, XXXX accountable for their unconscionable actions. Although too late for my parents, I hope appropriate action by the authorities will prevent thousands of other consumers from being financially destroyed by these unscrupulous and repulsive financial and servicing institutions. Background : On XX/XX/XXXX loan # XXXX was established between XXXX XXXX XXXX XXXX in the principle amount of {$32000.00}. The term of the loan was for 180 months with an astonishing high interest rate of 17.895 % ( Risk Based Pricing ). After reviewing the documentation regarding this loan provided by Beneficial, I have discovered the following unethical, or even perhaps illegal discrepancies. Discrepancy # 1 : Beneficial states, Please note that we are unable to provide the origination Appraisal for loan # XXXX ( formerly XXXX ) as it is not available. Therefore, Beneficial unethically lent money to a consumer without an appraisal for a property they were seeking a security interest in? I constitute that as predatory, or at least negligent. Discrepancy # 2 : On the Loan Repayment and Security Agreement ( Page 1 of 3 ), the property address is listed as XXXX XXXX, XXXX, NY XXXX, with the loan number being XXXX. This is neither the correct loan number nor is the property address zip code for XXXX XXXX, its XXXX. Note Beneficial states, You are giving us a security interest in the real estate located at the above address. This cant be the case, as that address does not exist. Discrepancy # 3 : The Truth-In-Lending Disclosure ( Page 1 of 2 ) contains the wrong address and loan number. Also, the Annual Percentage rate is an astonishing 19.001 % ( predatory ). Discrepancy # 4 : Loan Summary page contains the wrong property address. Discrepancy # 5 : XXXX XXXX credit report contains the wrong birthdates of both my parents. They ran a report for my father as XXXX XXXX. His name is XXXX XXXX, not XXXX XXXX and wrong birth date. They even disregarded four ( 4 ) XXXX alerts on the report. Instead of running a credit report for my mother ( co-signer ), they erroneously ran a credit report for a XXXX XXXX. The report had wrong name, wrong SS #, wrong birthdate and wrong address. Discrepancy # 5 : The Good Faith Estimate ( Page 1 of 2 ) did not disclose all charges. In all, they were charged {$1800.00} of excessive fees. Discrepancy # 6 : Title report was ran by XXXX XXXX XXXX XXXX XXXX on property with Deed dated XX/XX/XXXX,  recorded XX/XX/XXXX, XXXX XXXX, Page 770. This is the legal description used in both the note and mortgage filed in XXXX County, NY. On XX/XX/XXXX loan # XXXX ( which is crossed out and replaced with XXXX ) was established between XXXX XXXX XXXX XXXX in the principle amount of {$62000.00}. The term of the loan was for 240 months with an astonishing high interest rate of 11.540 % ( Risk Based Pricing/Loan Flipping ), with the following discrepancies : Discrepancy # 1 : Loan Repayment and Security Agreement ( Page 1 of 3 ) contains the wrong property address. Again, they state, You are giving us a security interest in the real estate located at the above address. Thats impossible, because it is incorrect. Discrepancy # 2 : The Truth-In-Lending Disclosure ( Page 1 of 3 ) contains the wrong property address. Discrepancy # 3 : The Loan Summary contains the wrong property address. Discrepancy # 4 : The credit reports ran contain the wrong birthdates of my parents. XXXX alerts were discarded. Discrepancy # 5 : The Good Faith Estimate contains the wrong property address, as well as discloses misleading, repetitive and excessive fees that my parents were charged for just six months earlier. Discrepancy # 6 : The Settlement Statement contains the wrong property address and charges my parents an astonishing {$4100.00} in settlement charges. This totals a sum of {$6000.00} in charges over a six-month period. Discrepancy # 7 : Title report was ran by XXXX XXXX XXXX XXXX on property with Deed dated XX/XX/XXXX, recorded XX/XX/XXXX, XXXX XXXX, Page 770. This is the legal description used in both the note and mortgage filed in XXXX County, NY. Discrepancy # 8 : The Uniform Residential Appraisal Report does not match the legal description of the deed ran by the Title Company. Also, it only states the address as XXXX and later in the report as XXXX XXXX. XXXX. Discrepancy # 9 : The Mortgage and Consolidation Agreement attached contain the wrong property address. The zip code for XXXX is listed as XXXX. XXXX zip code is XXXX. Discrepancy # 10 : The Optional Credit Insurance Disclosure contains the wrong address. The loans listed above were then consolidated by Beneficial on XX/XX/XXXX in the sum of {$110000.00} and riddled with similar discrepancies and fraudulent behavior, which I have previously reported to no avail. After my parents passing, Beneficial fraudulently sold these deficient and unenforceable loans to XXXX XXXX XXXXt XXXX by XXXX XXXX XXXX XXXX, XXXX and transferred the serving to XXXX. XXXX and XXXX continue to try to enforce these unenforceable loans and threaten my parents estate with foreclosure. I would like to see the appropriate action taken against these institutions and for them to admit their wrongdoings and cease and desist their present actions. It is obvious Beneficial partook in predatory, unethical and fraudulent behavior and took advantage of my parents unsophisticated and uneducated financial literacy. Beneficial has the documentation I have cited, as they provided it to me. They need to be held accountable, cure the loans with XXXX and discharge the erroneous records filed in XXXX   County, NY Land Records. As such, on behalf of my parents estate, I continue to dispute all alleged debt associated with XXXX account XXXX. I am fully prepared to litigate this matter should it become necessary.