Best Buy HSBC complaint and debt cancellation fee scam

Black Friday resulted in great sales figures for electronics retailer Best Buy. We shudder when thinking of how many people used a Best Buy credit card or opened a Best Buy credit card account. Hint – the bank is HSBC, and the card is issued by HSBC NV. Here is a complaint from MK in Nevada that explains why those of us at Lender Watch are concerned about HSBC and Best Buy:

My wife and I were living in Wisconsin at this time when we signed up for a Best Buy credit card to buy a TV. We signed the form and submitted the same day thus approving us for an amount of possibly $1000. We signed up for the credit card around the year 2003 or so, I also don’t remember signing up for the debt cancellation program either, but we probably checked it not thinking about if we ever needed.

I was also in the Marine Corps during that time as well, but I left the Corps in 2006. We made our payments and eventually did pay off the card at one time, then we later bought some other things with the card as well.

In the later part of 2009, my wife lost her job and bills were piling up, especially the Best Buy credit card. I noticed that on our bill there was a charge for debt cancellation and a phone number to contact them. I called repeatedly several times, but I never actually spoke with any department eventually being hung up on. So I tried calling the Customer Service Dept and they told me that the debt cancellation could only be used if the payments were up to date.

During this time, we have been behind on our payments hoping that we could use this service, seeing how we have been getting billed every time by the debt cancellation for every bill we received which probably totaled at least half or more of the entire amount due which was $6800, half being about $3400 or so.

I then proceeded to ask for a copy of the contract for the bill and they told me that I couldn’t get a copy unless a payment was made to make the account current which was probably around $800 or so, which I didn’t have at the time.

Then I asked to speak with a manager and they told me the same. I told them I would contact the FTC and BBB, which they seemed to then say that they would send me a copy of the contract which would take about 4 weeks or so to get. I said ok, then 4 weeks later no contract.

My wife Wendy and I are in such a terrible financial situation right now, our only choice is a Chapter 7 bankruptcy. We feel that we were taken advantage of and now feel that they won.

The debt cancellation fee scam probably warrants a spot on our Settlement Scams website, and you can read more about problems with debt cancellation, people who opted out but were signed up for it anyway, and many other issues by clicking over to our HSBC Watch website.

Both websites – Settlement Scams and Household HSBC Watch – are part of the Lender Watch network