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Violet Said:

HSBC Released the Lien but still wants payment?

We Answered:

Release of lien is just an agreement between a lender and a borrower under which the lender (lien holder) releases the mortgaged asset or property, although the debt obligation remains in force.

The debt is not your father's, you signed the paperwork on the loan, it is now, and has always been your responsibility to pay the loan.

Second, the debt collector has lied to you, there is nothing that can be done to remove the charge-off account from HSBC on your credit report, it will remain for the remainder of the 7.5 year reporting period.

If you pay, it will just update to "charge-off, settled for lesser amount" or "charge-off, paid". The only thing that Fortis can do is to remove the collection account from your credit report, they can not remove the charge-off.

They are pursuing you for the balance of the loan, because you borrowed $12,000 at a certain interest rate, your insurance paid $5946.88, this means that the balance of the loan is still due and payable by you.

That is why most places sell Gap Insurance.