Frequently Asked Questions
- What is this settlement about?
- How do I know if I am entitled to a benefit?
- What if I received a letter about a different Settlement?
- What benefits may I expect to receive?
- What do I need to do in order to receive any benefits to which I may be entitled?
- How and when will I receive my benefits?
- Is this payment reportable on my taxes?
- How do I obtain more information?
- What is this settlement about?
The United States Department of Justice made allegations that HSBC Finance Corporation (successor in interest to HSBC Auto Finance, Inc.) did not comply with certain provisions of the Servicemembers Civil Relief Act (“SCRA”) by repossessing motor vehicles owned by servicemembers during their military service. Although HSBC Finance Corporation neither admitted nor denied any of the allegations, it agreed to a settlement to resolve this matter and provide benefits to affected servicemembers.
Top - How do I know if I am entitled to a benefit?
HSBC Finance Corporation’s records reflect that you may be entitled to receive benefits. If you complete and return the declaration and release and are found to be eligible under the settlement, you will receive a payment.
Top - What if I received a letter about a different Settlement?
You may have received a similar letter from Santander Consumer USA, Inc. as part of a settlement that it entered into with the United States Department of Justice. You may participate in both settlements, but any payments made regarding each company’s settlement may be different.
Top - What benefits may I expect to receive?
Most eligible servicemembers who timely submit a completed and signed Declaration and Release upon the terms set forth in the Consent Order will receive a payment of $5,500. A few will receive a payment of $11,000.
For servicemembers eligible to receive a benefit, HSBC Finance Corporation also will request that all three major credit bureaus delete trade lines attributable specifically to the repossession for accounts belonging to them and any co-borrower.
Top - What do I need to do in order to receive any benefits to which I may be entitled?
Servicemembers wishing to receive payment must complete and sign the Declaration and Release, and return them in the provided postage paid envelope to:
HSBC Finance Corporation Settlement Administrator
c/o KCC Class Action Services
P.O. Box 8060
San Rafael, CA 94912-8060
Top - How and when will I receive my benefits?
Within 21 days after we receive your completed and signed Declaration and Release, we will send you either a check or a letter stating that you were not found to be eligible for benefits.
Top - Is this payment reportable on my taxes?
You should be aware that any money you receive may have consequences with respect to your federal, state, or local tax liability, as well as eligibility for any public assistance benefits you may receive. Neither HSBC Finance Corporation nor the Department of Justice can advise you on tax liability, your reporting obligations, or any effect on public assistance benefits. You may wish to consult with a qualified individual or organization about any possible tax or other consequences resulting from your receipt of this payment.
Top - How do I obtain more information?
If you have any questions concerning the declaration, release, or settlement, you can contact the Settlement Administrator by emailing info@HFC-SCRASettlement.com or by calling 1-888-254-9242.
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