Complaint Review: HRS Household Retail Services - Wilmington Delaware

HRS, Household Retail Services is a large "Private Label" credit provider. This means that your store charge with Best Buy, Rooms to Go, CompUSA, and many purchases of appliances, carpet, exercise equipment, furniture, etc. is financed and reported by HRS. Generally the retailer is paid for the merchandise (at a significant discount) by HRS and all future payments made by the consumer are sent to the account and billing address provided by HRS. No payments can be made directly to the retailer. HRS is not a charitable organization, their profits come directly from late fees and interest charged to the consumer.

My past experience indicates that HRS will randomly withhold statements within an interest free promotion, delay making requested address changes, or change a mailing address in order to prevent statements from being received in a timely manner. HRS statements are routinely mailed too near the due date to be effective in making payments on time, plus they will delay posting payments to their accounts.

HRS "missed" mailing me my statement. The deadline for an interest free promotion was due to expire. The payment could not be accepted by the retailer. I was charged $10.00 for their pay by telephone option, fortunately saving myself $280.00 for interest that would have been charged to my account.

HRS reported my account with three different spellings of their name, with slight variations to their account number, and different credit limits to the credit reporting agencies. This showed as nearly $13,000.00 in available credit, not the amount for which I was approved.

Key Information (applies to all revolving credit):

1. Keep a copy of a previous statement to use if a statement does not arrive.

2. Use the statement (copy) and correct mailing address to make a payment, put your account number on the check.

3. Track the billing cycle carefully.

4. Payments should post within 24 hours of the date your bank "clears" the transaction.

5. Report infractions: to credit reporting agencies, attorney general general for your state, Federal Trade Commission, everywhere.

6. Follow up any telephone conversation with hard documentation. Letters must be kept on file and responded to by the creditor.

7. Attempt to be courteous to the Customer Service Reps. Give information clearly and accurately, ask questions and get names of contacts if possible.

8. If available, use online banking to make payments. Payments will not be lost in the mail. Your bank will be supportive and have documentation if posting of payments are delayed past the transaction date.

People lacking an understanding of the language used in contracts, and tactics used by predatory sales methods and credit providers will be victimized. Use caution when making high dollar purchases. Ask for the terms of the contract and name of the credit provider. Research their methods to help make an informed decision.

If you don't like the terms or reputation, DO NOT finance your purchase from that retailer. Due to competition, most retailers offer price matching, so the price isn't the real issue.

Interest free promotions are no bargain if the credit costs you hundreds of $$$ in late fees, higher interest rates, or a dubious payment history. All these factors lower your credit rating, making competetive rates on a mortgage or car loan virtually impossible in the future.