Complaint Review: Household Bank - Prospect Heights Illinois

Mike, I've dealt with Household, now HSBC, in the past. You have to read every line in any contract and look for contradictions within the terms. Sometimes I wonder hhow anyone without a law degree and banking background even stands a chance. Fortunately, I was not "injured" only inconvenienced by the transaction I had regarding an interest free promotion. You know the ones, Interest free, with minimum montly payment, however any late charges voids the terms. During my IFP, they failed to mail me a statement. I track all my statements carefully, and when I knew the payment would be coming due, tried to pay at the store where I made my purchase. The store could not accept the payment, so two days before the promotion would would expire and the payment was due, I made a payment over the phone. That only cost $15 as opposed to the $250+ in interest charges and their late fee charge. I closed out my Best Buy account serviced by Household International and have since refused to open any private label (store accounts) serviced by Household/HSBC. when I first made that decision I didn't realize the extent of the Household presence in the retail community, and got as far as deciding on a purchase and walking when it was disclosed the fianancing was provided by Household. I know I irritated several sales people, that probably work on commission, when I stopped the transaction. Now I ask first, so I don't waste my time negotiating a purchase I know I won't accept. Houshold also had my credit report messed up by reporting the account with variations of the account numbers and credit level to all three credit reporting agencies. That made it look as if I had three accounts with available credit totalling $13,000, instead of one account for a third that amount. In my earlier rebuttal, I never indicated that the cosigners were not responsible for their part, or that personally I feel that their brother was a dead beat that took advantage of them. However, when the terms changed as dramatically as they did following the original loan, then Houshold increasing the credit line on a revolving line, was being deceptive. Did the original loan paperwork even indicate it was a revolving line, or that additional credit would be granted? Obviously Household doesn't care, the bottom line for them is the buck, and they don't care how they get it or report it. The revolving credit you described with the low minimum payments can go on for years. Using revolving credit in that manner, the purchase would be 70 years old before it was paid off, and depreciate faster than the balance. Was any of that disclosed? Absolutely not, because if it was properly disclosed there would be "NO SALE". Sales staff at the dealerships embrace the buyer beware motto, and are selling the glitz and glamour. They make the financing look competetive when in fact it is usorial interest and fees, and they get commissions on the financing as well as the sale. If the prospective buyers would do their own math, or go prepared with their own financing and stop the madness, then possibly things would change. In the meantime, it needs to be documented so at least a formal complaint can be filed with the proper government agencies reporting the abuse.

Nancy is on the right track but if you look closely it appears that Household complied with the law. First they almost certainly had the paragraph from (c) in there. That is deceptive because it talks about "this debt" suggesting that only the one ATV will be involved. But that's really Congress's fault for how they wrote the law. Also when they sent the card to the cosigner it probably satisfied the requirements of (a)(2) by notifying the cosigner before additional debt was incurred. But they don't have to get the cosigner to sign again on an additional purchase. The trend is toward financing everything except cars and real estate with revolving accounts. Finance companies love it because it allows deceptive practices like this one. The other big reason for going to revolving is that they don't have to tell the buyer the number of payments required to pay off the loan. They can set a very low minimum payment and trap the unwary in debt forever. If you are a cosigner on anything, check with the finance company every month to make sure the other signer is current with payments. Only in some states might the law require the company to notify you if not. Even if they do, by then your credit will have at least one late payment reported, so it's too late.

Your husband signed a loan for a non-essential recreational vehicle? If his brother's credit is that bad why would he (the brother) even think about getting a loan for an ATV (not 1 but 2)? Your husband was duped by his brother.

Your brother is the one who took advantage of you and your husband -- you should take him to small claims court and sue him. I dont understand why you think this was HHB's fault - it sounds like your brother needs to grow up and take some responsibility.

http://www.access.gpo.gov/nara /cfr/cfrhtml_00/Title_16/16cfr444_00.html Quote from Regulation Z Truth in Lending 444.3 Unfair or deceptive cosigner practices. (a) In connection with the extension of credit to consumers in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, it is: (1) A deceptive act or practice within the meaning of section 5 of that Act for a lender or retail installment seller, directly or indirectly, to misrepresent the nature or extent of cosigner liability to any person. (2) An unfair act or practice within the meaning of section 5 of that Act for a lender or retail installment seller, directly or indirectly, to obligate a cosigner unless the cosigner is informed prior to becoming obligated, which in the case of open end credit shall mean prior to the time that the agreement creating the cosigner's liability for future charges is executed, of the nature of his or her liability as cosigner. (b) Any lender or retail installment seller who complies with the preventive requirements in paragraph (c) of this section does not violate paragraph (a) of this section. (c) To prevent these unfair or deceptive acts or practices, a disclosure, consisting of a separate document that shall contain the following statement and no other, shall be given to the cosigner prior to becoming obligated, which in the case of open end credit shall mean prior to the time that the agreement creating the cosigner's liability for future charges is executed: Notice to Cosigner You are being asked to guarantee this debt. Think carefully before you do. If the borrower doesn't pay the debt, you will have to. Be sure you can afford to pay if you have to, and that you want to accept this responsibility. You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount. The creditor can collect this debt from you without first trying to collect from the borrower. The creditor can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may become a part of your credit record. This notice is not the contract that makes you liable for the debt." End of quote The person involved cosigned a loan in the belief that it was for a set value and term. Granting revolving credit to the brother and allowing the credit level to be raised, indicates that unfair and deceptive cosigner practices may have been committed by Household Bank. I would recommend reviewing the original loan application, disclosure statement, loan documents and contracts. If they are not completely satisfied with the integrity of the finance company, file a complaint with the Comptroller of the Currency in the address given in Regulation Z Truth in Lending.

Why do you feel that you got ripped off by this company? They were only doing their jobs.. getting money ,money, money. The blame is to fall within your brother! When your brother received the credit card with the credit line increase, the right thing that should have been done was to contact you or your husband to get approval for another purchase. He knew that he was a cosigner and that it would effect him,you and your credit. Be careful who you cosign for, even if it is for a family member.