Today I received a notice from my insurance company that my homeowners policy was being canceled for non-payment. The thing is, my mortgage company, HSBC is supposed to take care of that, using funds I pay into escrow. I called HSBC and found out that they paid the bill, but they paid it late. They told me the check left their office on March 31.
Sure enough, when I called my insurance company I found out that they’d received payment on April 3 and that my policy won’t be canceled after all.
I’ve never had this problem before. Surely HSBC must know how to pay insurance bills on time.
I wonder whether HSBC was trying to preserve cash at the end of March to make its cash position look better at the end of Q1. Of course I could be wrong, but with all the trouble in the mortgage market it makes me wonder whether this is an isolated case or part of a broader strategy.
Anyone else have a similar experience?April 4, 2008