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HSBC ignores TILA recission causing federal court action


As I sit here reading a post I very quickly see that HSBC has a total disregard for the law,
unless it works in the favor of HSBC. Here is an example:

I had my mortgage audited to see if it complied with the law. That is to see if are
documents, figures, dates and charges conformed with Truth in Lending, RESPA and
Hopa. The audit clearly showed that the mortgage was completely in violation of the law.
In fact it was nuder stated by $288,000.00, under disclosed by $294,000.00 contains false
or misleading payment schedules, payment amounts and interest rates. I did as is allowed
by law, I rescinded my mortgage. I sent not one but 3 notices to HSBC Mortgage
Services in Brandon Fl. HSBC replied in writing by one of their many Customer Service
Managers “That HSBC has checked my loan, found nothing wrong and as such refuses to
accept the rescind notice.” They did this for each notice, signed by a different manager.

Sending this information to OCC, FTC and the Federal Board of Governors the
following was the official reply.

The Truth-in-Lending law empower Mr. Curtis xxxxxxx , to exercise his right in writing
by notifying creditors of his cancellation by mail to rescind the mortgage loan
transactions per (Reg. Z §§ 226.15(a)(2), 226.23(a)(2), Official Staff Commentary §
226.23(a)(2)-1) and 15 U.S.C. § 1635(b).

The statute and regulation specify that the security interest, promissory note or lien
arising by operation of law on the property becomes automatically void. (15 U.S.C. §
1635(b); Reg. Z §§ 226.15(d)(1), 226.23(d)(1). As noted by the Official Staff
Commentary, the creditor’s interest in the property is “automatically negated regardless
of its status and whether or not it was recorded or perfected.” (Official Staff Commentary
§§ 226.15(d)(1)-1, 226.23(d)(1)-1.).

Also, the security interest is void and of no legal effect irrespective of whether the
creditor makes any affirmative response to the notice. Also, strict construction of
Regulation Z would dictate that the voiding be considered absolute and not subject to
judicial modification. This requires HSBC Mortgage Services to submit canceling
documents creating the security interest and filing release or termination statements in the
public record. (Official Staff Commentary §§ 226.15(d)(2)-3, 226.23(d)(2)-

TILA, as neither cases nor statute give courts equitable discretion to alter TILA’s
substantive provisions. Since the rescission process was intended to be self-enforcing,
failure to comply with the rescission obligations subjects HSBC Mortgage Services Inc.
to potential liability. Non-compliance is a violation of the act which gives rise to a claim
for actual and statutory damages under 15 USC 1640. TILA rescission does not only
cancel a security interest in the property but it also cancels any liability for Mr. Curtis
xxxxxxxx , to pay finance and other charges, including accrued interest, points, broker
fees, closing costs and that the lender must refund to Mr. Curtis xxxxxxxx , all finance
charges and fees paid.

OCC replied as such:

Where, as here, if, a creditor does not respond to a properly served and ignores a duly
issued TILA notice of rescission, an Entry of default, is the appropriate and, indeed, just
and only recourse. According to The Office of the Comptroller of the Currency, “a
consumer’s right to rescind is not affected by the sequence of the rescission procedures or
a court order modifying those procedures in both open and closed-end credit
(Comptroller of Currency, OCC Bulletin 2004-19 (May 7, 2004)).

Since the Creditors do not appear disposed to follow and to abide by the rule of law
of the Federal Truth-In-Lending Law, this Court has as the only avenue available to
conclude this matter, the entry of default against Creditors for failure to comply by
illegally proceeding with a foreclosure action despite having received the TILA
rescission notice that automatically void the security interest as described in 15 USC

AS you can see the law is very clear that the lender must comply with the actions
described under the law and within the required time frame. HSBC’s reponse — THEY
WILL NOT COMPLY!!! Their answer TOO BAD!!!

Since they did not comply we are now going into federal court. We intend to sue HSBC
PLC, HSBC Finance and HSBC Mortgage Services. We are asking for all the fines, legal
fees, statutory penalties and punitive damages. Baring the punitive damages, fees and
fines exceed $640,000.00.

So you see by the above that HSBC and its employees think that the law should only
apply to us and that HSBC is free and clear to do what ever it pleases. Its time is
coming. I have in contact with every member of the Senate Banking Committee and the
House Finance Committee, faxed my loan documents to the US Attorney General in
Washington alone with all letters, forms, statements connected with this loan.

These same documents have been sent to the US Attorney in New Haven Ct. and have by
by that office forwarded to a Supervisory Special Agent of the FBI. The US Attorney in
Hartford, after reviewing my documents, informed me of the violations and instructed me
to be civil action in federal court. I thank this site for its assistance in posting information
helping us determine the direction in which we would be best able to confront this
corrupt company.

As a foot note in researching various complaints against HSBC Mortgage, the national
BBB has on record over 9400 complaints, of which 3600 were reported in the last 12
months. The above complaints were registered in the last 36 months. I hope the
employees of HSBC are proud of their record.

Editor’s Note: I know many of our readers are watching this to see if a legal precedent
will be established. Perhaps 2009 will bring good news to many homeowners.