If you cannot hear chat when using that headset either, then the issue may be with the Settings or your Xbox Live membership.
Make sure your Xbox Live Gold Membership is active and configure the privacy settings: 1.
You should now hear the chat audio at the same volume or louder than the game audio, which you can adjust to your preference.
The right button labeled 'VOLUME' controls the overall volume on the HAC, which means it affects both the game and chat volume.
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