Complaint / review text:
In 2006 I purchased a motorcycle for $150mo. @ 10%. HSBC was the lender.in 2007 I had a problem and admit that I fell 30 days behind. I made that payment and continued to pay on time for several months.in December I received a call from HSBC advising that my loan was in default and unless I paid over $1000 they would repo the bike. I reviewed my files and confirmed with the rep that I had not missed any payments since falling behind one month. The rep advised me that since I had gone 30 days late my interest rate increased from 10% to 21% and that my new payment was $300mo. I could not believe it. That's double the payment.
There was no notice sent so all the months I was paying only half the amount due. I paid the money due under protest and tried to get them to lower the rate and monthly payment, The rep. Sounding more like a robot every minute kept saying, That's our policy. I explained that the increased payment was not in my budget and asked again if they could lower the payment. One guess what the parrot said.
Of course I tried to stay current and long story short the vehicle was repo'd. I owed $11,000 (the original price) on the bkie because even though I made payments for two years the fees and interest did nothing to the balance.in fact I believe it actually increased. That's some scam! Has to be some sort of unfair credit practices going on there.
My only recourse was to pay off the entire balance. They would not accept any other payment. I averted their evil plan to sell the bike, force me to pay repo fees, storage fees and the balance and end up paying nearly the same price for the bike without actually having it. I hope karma is real. If there is a ray of light... The repo guys were really nice.
Repo, credit destruction, embarrassment, depression, despondency, stress, and all around genrally hurt feelings.