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Borrowers Involved in HSBC Settlement May File Claims Beginning Aug. 24

Borrowers Involved in HSBC Settlement May File Claims Beginning Aug. 24 - The Beacon


By: Jackie

Borrowers Involved in HSBC Settlement May File Claims Beginning Aug. 24

Earlier this week, your BBB® received an email alert from the Indiana Attorney General (AG) Greg Zoeller about a settlement for Indiana residents who used mortgage lender and servicer HSBC and who lost their homes during the period from Jan. 1, 2008 through Dec. 31, 2012 due to HSBC servicing abuses. The Kentucky Attorney General Andy Beshear also issued an email announcement to the media to inform Kentucky residents of the settlement. We would like to help get the word out.

The $470 million federal-state settlement with HSBC was announced in February of this year, and beginning August 24, 2016, eligible residents may begin filing claims for reimbursements. Under the terms of the settlement, Indiana receives $2 million and Kentucky receives $59 million. The Illinois Attorney General has not yet issued a Press Release, but Illinois residents who have a question about the settlement may call the Illinois AG office at 312.814.3000.

According to the news from the Indiana and Kentucky AGs, 2,810 Indiana borrowers and nearly 1,400 Kentucky borrowers are eligible for relief. In Indiana individual payments will start at $780. The actual amount each individual receives depends on how many people file claims. The third-party administrator selected to administer the claims, Rust Consulting, will begin mailing instruction packets to eligible borrowers on August 24, 2016. The deadline to submit claims is November 15, 2016, and payments will be mailed in February and March of 2017. According to settlement information at, borrowers who believe they are eligible but have not received a packet by September 2016 may contact the administrator toll free by calling 1-888-538-5792, Monday through Friday between 7:00 a.m. and 7:00 p.m. Central Time.

In addition to the monetary settlement, HSBC will now be subjected to stricter mortgage servicing standards which are designed to deter “foreclosure abuses such as robo-signing, improper documentation and lost paperwork” according to AG Zoeller’s office.

Struggling homeowners may seek help from the following agencies:

Illinois – 312.836.5200 or

Indiana 877.438.4673 or

Kentucky 502.582.6074 or

For more information you can trust, visit

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Jackie is the Operations and Education Foundation Assistant with the BBB. She assists consumers with business inquiries, and does presentations to senior groups and high school students. She is a regular contributor to the blog.