United States of America, et al. v. HSBC North America Holdings Inc.; HSBC Bank USA, National Association; HSBC Finance Corporation; HSBC Mortgage Services Inc.
Published: Feb. 27, 2016 | Result Date: Feb. 4, 2015 | Filing Date: Jan. 1, 1900 |Case number: 1:16-cv-00199-RJL Settlement – $470,000,000
Court
USDC Washington, DC
Attorneys
Plaintiff
Tina Charoenpong
(Office of the Attorney General)
Brian P. Hudak
(U.S. Dept. of Justice)
Defendant
Facts
The federal government and 48 states filed a complaint against HSBC North America Holdings Inc. and its various entities, for allegedly violating the Unfair and Deceptive Acts and Practices laws of the respective states and other laws.
Contentions
PLAINTIFFS' CONTENTIONS:
Defendant allegedly violated various Unfair and Deceptive Acts and Practices laws of the plaintiff states as well as the False Claims Act, the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and the Bankruptcy Code and Federal Rules of Bankruptcy Procedure in connection with defendant's allegedly faulty mortgage servicing practices and foreclosure abuses.
Result
HSBC agreed to pay $100 million in cash settlement. Of the $100 million, nearly $60 million would go directly to the affected borrowers. California was set to recover 10 percent of that fund. In addition, HSBC also agreed to provide $370 million in consumer relief, such as loan modifications, loan refinancing, and principal reductions. HSBC was also required to implement certain changes to its practices.
Other Information
FILING DATE: Feb. 5, 2016.
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