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04-20-2010 10:26 AM
I'll try to make a long story short: Husband and I are not behind on any payments but I have been unemployed for 15 months and receiving benefits for the last 9. He has a job but is about to be laid off as of June 15th. We're trying to get on a debt management plan to pay off $29K of CC debt over 9 cards.
Money Management International counseling said we won't qualify if we do the paperwork based on both of us receiving unemployment.
I called Chase who were great and offered a 5 year repayment at 6% interest, with significantly reduced monthly payments.
HSBC said they can't help until I'm past due on my 2 cards with them. The guy I spoke to was technically a "collector" with the Customer Assistance Team. They said I could only go on a 3rd party debt management progam but don't care that I've already been to counseling and was told I couldn't qualify. It was unclear to me if I missed a payment what my status would be. He said at that point they could look at options to help me but I don't want the account to be in "collection" as I'd like to try to keep my FICO score pretty good (right now it is about 720). He said to miss my next payment and call back 10 days later and they could help. This is going back to when mortgage companies wouldn't help until you'd missed a payment or two! It's ridiculous that they won't work with people who want to be proactive.
For the record, Citibank also said they couldn't help since I was current and Barclay's Bank wanted me to fax a letter to them requesting help - no human to actually talk to first!
(Sorry, that wasn't so short). So the question is, does anybody know how this would work with HSBC? If I'm 10 days past due and call for help it won't yet have been reported to the credit reporting agencies (since it won't be 30 days) but will they place me on a hardship program or would I be in collections? The guy I spoke with didn't want to give me any info because I'm not yet past due and he didn't want to get into trouble.
P.S. If you need to talk to HSBC about your OWN card here are some numbers:
800-633-9956 will give you the debt management dept. who are located, I believe, in India and ALL they can do is tell you to go to 3rd part credit card counselor to sign up for a program.
Customer Care cannot help you so call the Customer Assistance Team at 877-256-0561 / 800-434-4954. Again though, they can only help if you are already past due.
Chase Proactive Solutions are nice and friendly and respectful! 888-456-0935. They ask for lots of info on your budget for housing etc and other credit cards but they were able to really help me. The account will show Voluntary Closed; Pays as Agreed so no damage to my credit. Yay Chase!
11-05-2012 09:40 AM - edited 11-05-2012 10:27 AM
@songexperience - - - HSBC will help you internally if you tell them your other cards are on a hardship program already ( since they don't have resources to actually find that out) Also what works is calling in saying "I was speaking to someone previously, we're going over a budget sheet and we got disconnected" this works because a budget sheet is required before they can submit a 5yr hardship program. it's an expense to income sheet, and it's only a numbers game. Make sure that with all your bills paid, you can show you have less than $50 leftover each month. Anything more than $50 typically, the bank will say "you don't qualify" But I work as a credit card negotiator, and HSBC/GM/union plus/direct merchants....All HSBC and CITI bank creditcards, it is required for you to be at least a week late. The reason why is because, if you're not late....Clearly you're not in financial hardship If you're able to keep up with the minimum payment....Compared to those who are a week or more late( they'd be first in line over card holders current on the bill)
and second - if the first reason wasn't good enough, there's another element......Even if you weren't past due and the rep at HSBC was 100% on your side and wanted to help you.....Or lets say you had the rep @ hsbc hostage and you made him give you a 5 year hardship program OR ELSE!!!!.......That still wouldn't do you any good because, in order for a rep @ hash to activate this type of program it cannot be greyed out on their computer screen........And......In order for it to not be greyed out.........you MUST be past due at least 7 or more days...
hope this makes sense....for more information on getting into a 5yr program @ hsbc please e-mail me, and I will help you, free advice always helps. And BTW........when a client and myself decide to intentionally go late on HSBC, i'm successful 100% of the time on getting their 5yr deal @ 0% ( fixed)
p.s. - HSBC will NOT report negative to your credit unless you're over 30 days past due....which in this case you only need to be 7 days past due
07-10-2013 06:52 AM
I'm in a similar position - not late, but I'm suddenly and unexpectedly required to pay over $700/month in unexpected daycare expenses for my granddaughter (as well as any other expenses to keep her healthy, clothed, fed and safe). This was not factored into my budget - and at the same time, I now have less time available for my freelance writing, which means I've seen my income drop about $250/month as a result. Add in minimal costs for clothing, food, extra expenses associated with day care "field trips", and I'm in the hole at least $1,100 a month.
I wanted to be proactive and get my card (was HSBC, now becoming Capital One - GMcard services were transferred to Capital One) down to a lower interest rate.
I got the same story when I told the creditor that I've been through credit counseling and was told to request an internal hardship program: I don't qualify, because I'm not late. I asked for more information and was told that I would need to be at least several months delinquent before I could qualify for a hardship program. They wouldn't say how many months, but the implication was at least 3 or 4 months at a minimum.
Is the advice you gave still current, given that HSBC's servicing is being transferred to Capital One? Is there something I am missing on trying to get through to them?
I don't mind being a week late and having one late fee if that gets me from the 22.9% interest rate down to anything more manageable, but I need to find room in my monthly budget asap so that I can pay the daycare fees.
07-10-2013 07:54 AM
Okay, Here we go. I know the thought or suggestion of going late especially when you still have great credit despite where you are and then to top it off to have the bank you are trying to get help from tell you that can be scary or frustrating or seem like working the system.... and how ever you want to word it the fact is most of the employees, collectors, whoever they are actually just have this budget sheet as someone else mentioned and they ask, you answer, they type and submit and the computer spits back if you qualify or not and what you qualify for.... hard to believe that you could get a no, hang up and call back and say I looked at my budget again... blah blah and do it again... you every once in a while get someone that "knows" what needs to be inputed but it's like a bankruptcy attorney, they can tell you what they need HINT HINT but they can't make you give them those numbers or reach the same answer they need.
it's a pretty simple break down... POOR but in this case not in the red... in the red = no payment plan... yes I know again that makes no sense... I don't have enough money to pay so lets not help!!!
easy numbers.... you make $1000, rent is $500, car is $100, living is $200, other $50 = $850 which leaves $150 for debts including this one... DING DING you have enough for a small payment plan.... you find yourself with either a no interest 12 month or if your lucky something like chase offered just lock it in for good. (I know many of us have more than 4 expenses... NARROW IT DOWN... they don't care, they have a simple sheet, the more you talk, the more they have to type! keep it simple, you are only making it harder for yourself when trying to get a plan with them.
oh and back to that late thing... each bank considers it differently... they will usually tell you... USBank is 5 days, some are 30... I know you think 30... that means it will be on my credit!!! NO.... it's just 1 statement, so within 1-2 days usually of statement 2 posting and showing you missed a payment, that would be considered late and you could try to qualify... it would not report to credit as being 30 days late until you miss that 2nd statement posting bringing you into month 3 actually... your usually really 60 days late when they report 30 and so on (and no I don't need someone to chime in and tell me how I'm wrong... ive been here more than I care) MOST, especially the prime banks really don't want to put lates on your credit and will give you down to the days of when that will happen... it doesn't just pop up all of a sudden.
07-10-2013 12:56 PM
Can you apply for another card and do a balance transfer with 0%?
Just an idea