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  • Report:  #218994

Complaint Review: Beneficial Finance - East Hartford Connecticut

Reported By:
- manchester, Connecticut,
Submitted:
Updated:

Beneficial Finance
926 Main Street East Hartford, 06108 Connecticut, U.S.A.
Phone:
860-289-3371
Web:
N/A
Categories:
Tell us has your experience with this business or person been good? What's this?
I want to set some background information so as to make it clear. I have had a loan with the company for two years.

In the two years not one payment was ever late and the account is current and up to date. But having had to deal with HSBC and having many issues with them, I decided to ask for a detailed report of all activity on my account. Here is where the plot thickens.

HSBC/HFC/Beneficial all one in the same. The life insurance and disability insurance offered to customers is Household Life out of New Jersey. It is also owned by HSBC.

I went to my local branch office and requested the report. A girl I can assume to be a an administrator and not a loan officer, hit print on her computer and out came the report. I went home and began reading it. The report was not for my eyes or that of any customer. It was a report intended for internal use. Its detail to say the least was impressive.

The report listed every activity on my account. Listed all interest applied to my loan. Interest shortages, deferred interest, payments, rate changes, amounts applied to principal etc.

This is were the problem begins.

1. It showed that over the entire course of the loan, not one payment was ever posted to account on its due date or before. Being an simple interest loan, every month had a deferred interest charge. So far over $549.00 in additional interest has been applied in 22 months.

2. Around the 12th payment they created a rate change. This rate change was done without my knowledge or permission. Under stand that this a 30 year fixed loan. In creating this rate change they also added a charge of $187.00 as a rate change fee. They also at this time doubled up the payment for both life and disability insurance.

3. In cross checking the interest rates against actual deferred interest charged, we could not come up with the same results , again using their figures.

4. For 14 months an over payment of $100.00 was sent in. Instead of applying the additional to principal they used it up in interest payments. The more sent in the more in interest they took. Example( the pay was $294.36. $406 was sent in. $244 went to interest and $129 went to principal.). In a simple interest loan I=PRT which means that if your principal remains high so does the deferred interest per day remain high.

5. In a simple interest loan , the per day deferred interest rate declines as the loan matures. They charge the same deferred interest rate for 20 months, with no decline in the deferred interest. It should decline progressively if by only a few cents per increment.

6. Having had my account for several months I was

forced into a permanent disability. I contacted the insurance, filed out the form and was accepted. The insurance began making payments. Knowing my due date and being owned and operated by the same company every payment was sent in 1 to 2 days past the due date. It did not make the loan late but added the deferred interest charge to the account.

Other also need to be addressed but that is for another time. I contacted home office personal and after making some threats regarding RESPA, Truth in Lending the individual to whom I spoke basically told be that I was too dumb to understand the report I was given and at the same time indicated that the branch should not have given it to me. She stated that the report would only confuse me, and they would send me a less detailed and complicated one explaining how my loan worked. She was more concerned with who gave me the report than what the report contained.

Curtis

manchester, Connecticut
U.S.A.


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