HSBC shady practices?

[Runnin on empty]

So, just for kicks and giggles we decided to run our credit reports yesterday to see how badly we look post-BK. I was actually surprised, our credit doesn't look nearly as horrid as I expected it to be. There was one thing that I am very concerned about though.

We have our primary mortgage through HSBC, and have had so for over 5 years. We have NEVER, EVER missed a payment. I think that *maybe* once or twice my wife may have sent in a payment a few days late, using the "Late Payment" amount as stated directly on our monthly bill.

So anyway, I run our reports. Lo and behold, HSBC is showing our account as closed, that it is Included In Bankruptcy (IIB), and the following info:

Date of first delinquency - 12/07 - We haven't ever missed, and haven't been late in well over a year, if not longer.

Date major delinquency first reported - 3/08 - How in the heck could we have had a major delinquency if we've never, ever missed a payment, and never had a payment more than a few days late?

We've even filled out reaffirmation statements for both our primary and secondary mortgages so we wouldn't lose the house. I was adamant about it because we have a VA guaranteed loan, and I don't want to mess that up for a future potential home purchase.

I need to pull out the copy of my credit report before filing, I bet that will have all the correct information on it, they're just being jerks because we filed. Of course, there isn't a day that doesn't go by that we don't get a CC offer from them in the mail though!

I was so mad yesterday that I was ready to just walk away from the house. I mean, what good is it going to do our credit to keep paying as agreed to them each and every month if they are going to report it as "IIB" to the credit agencies?

Thanks for letting me vent. Any thoughts though? Do I have any grounds to argue this on?

[magyar123]

Did you call them in confront them?

[jerzey]

Ask for their Proof of the late then check it with you bank to see when the check was dated and when it was cashed

They may have gotten the check then for what ever reason didn't cash it till you were late and cause their credit dept to show it as a late

[uofaguy]

Runnin - please keep us posted if you find anything out or are able to get the date of first delinquency (DOFD) removed. I am in the same situation with my mortgage company & the financing company for the car I lease. I did a ride through (did not reaffirm either but continue to pay ontime as I always have) on both the house & car lease. Despite always being prompt on my payments both the mortgage and the car lease show a date of first delinquency & a major delinquency date.

My take (from another forum) is that the DOFD is the date the creditor believes you filed BK - and has nothing to do with your promptness/not having been late & that the major delinquency is when the creditor found out about the BK filing? However, if I am incorrect I would like to be set straight so I can further challenge this (the credit bureau claimed they verified my dispute with the creditor and the above DOFD remains on my credit report). Thanks.

[Runnin on empty]

I understand that some creditors will automatically place an "IIB" on a customer's file, whether they were officially included or not. That isn't what I have an issue with per se (that is another thread in and of itself), it is the fact that they have us down for delinquencies. Like I said, we *may* have made one or possibly two payments a few days (and when I'm saying a few days, I don't mean 20-30, I literally mean 2-3 days) late.

I know we filed. I know we were irresponsible and had to do the dirty deed, we will have the mark upon our foreheads for a long time to come, but why did HSBC have to do us like this, especially when they're still sending us CC offers in the mail every day from one of their subsidies?

This is the biggest reason why I never want to have to use credit again. I'm not naive enough to believe that we'll never need it, but if this is the way we're going to be treated, to heck with 'em. I've much preferred the 'cash only' lifestyle we've been living for over a year now, as opposed to the 'rob Peter to pay Paul' mode they wanted us to be in indefinitely.

I really wish we had a place to go other than this house, I really do, because nothing would satisfy me more than to call them up, give them a piece of my mind, and tell them that the property now belongs to them. I mean, seriously, other than keeping my standing good with the VA for a future loan, I have ZERO reason to repay this loan, as it will always show as an IIB on my credit report.

Okay, enough ranting. I'm going to do some sleuthing, I'll report back what we find.

[uofaguy]

Runnin - I may not have been clear in my first reply.

The explanation I received from the credit bureau is that even though I have never been late on my 2 accounts (home & car lease), they still put down a date of first delinquency - - just because I filed BK. I was/am upset, b/c it makes my credit report appear that I was late on a payment when the put a DOFD just for filing BK. Frustrating.

[Flamingo]

We ran into the same situation; first, your mortgagor is correct - your mortgage is included in your bankruptcy. You may or may not be able to get that removed from your credit reports. Dispute it anyway and advise that payments were made directly to the mortgage company before and after the filing and nothing was discharged in the BK as to the mortgage. You may get lucky and get it changed.

As to the date of the major first delinquency first reported horrid situation...We had those appear after our Chapter 13 discharge. Equifax was the only culprit. Dates were showing up in late 2007 even though were were discharged 8/2006. Took us a while but we finally had to write to each and every creditor directly about the situation (I also enclosed to each creditor a copy of the credit report section showing that information) and sent a copy of ALL the letters to Equifax. A few creditors got back to me and about 6 weeks later Equifax sent us new reports with all creditors removed advising us that those creditors were no longer reporting to Equifax. Now, prior to that, Equifax advised us that the creditors were reporting correctly....think about that one.

Anyway, dispute. It is not an overnight process so don't be impatient. You will eventually get rid of the first major dispute reported dates but your mortgage was a part of your BK (listed as a creditor in your filing) and you may not be able to get that changed.

[Runnin on empty]

Well, we called HSBC, and the lady there said the following:

1 - The account is not closed, it is very active (obviously, duh!).
2 - We've only ever been late once, back in fall of '04, and it was only by 2 days (chalk it up to the mail I guess).
3 - We weren't able to discern if it should be showing 'IIB' status on our credit report or not - Again, if it shows as IIB, I don't see what my motivation is to keep up with the loan, other than having to vacate the property of course.
4 - It definitely should not be showing any delinquencies at all.

We are sending in a copy of our report, along with a detailed letter to their "we're gonna check it out and find out what is going on and whup up on who is responsible" people (I forgot the department's name.

[halloweendmb1]

if you reaffirm the mtg do they still show it included in BK even 10 years later?

[Runnin on empty]

if you reaffirm the mtg do they still show it included in BK even 10 years later?

That is a very good question. It'll be a moot point for us, we're selling the house as soon as I finish with my schooling, which shouldn't be more than another 2-4 years max.

I'm hoping to be able to talk HSBC into removing the "IIB" status of our mortgage, assuming that they were the ones who initiated it. If it in fact was Equifax, I'll send them letters with proof until they fix it.