Jim
Anaheim,#2Consumer Comment
Thu, July 14, 2011
I would try to negotiate a final payment that would result in a payment in full for all outstanding issues. I mean a lot of this is your fault; you may have an understanding as to what the terms are, but what you described is NOT how secured credit cards by anyone, including HSBC work. They won't generally go after your savings account to settle the final payment because it will never end up getting settled. I suspect your savings account may actually be gone due to the amount of bank fees; you need to check that out too.
I think the $2000 is more than just interest; HSBC is notorious for issuing credit cards with heavy fees. If you're in a position to pay, I would offer the $537 only and tell them you'll pay this amount right now IF they settle the entire debt in full. If you don't have the money to pay, then you have nothing to negotiate with them. Now, it's going to cost them more in labor to go after you for the interest even in a small claims situation and they won't get the entire amount of interest anyway, but they will get more than $537 and worse....is that you'll have a judgment against you which is hard to get around when you need to repair your credit. Speaking of credit, I think your credit score is going to get dinged as well as a charge-off, but if you're an HSBC secured credit card customer, you already have really bad credit, so no loss there.
I would avoid court because the judge will assign you some of the interest cost. Next time, don't default on your card, no matter what. In fact, the way in which you referred to your default of a credit card...tells me you should not have a card - period. Sorry....best of luck to you.