Household HSBC Watch

HSBC Talking Point 2005 - How It Came Out

While 2004 proved interesting to analysts and regulators 2005 should be very interesting for consumers. A RICO suit stills hangs over H&R Block and Household International. Effective 15 December 2004, Household International is now called HSBC Finance Corporation. The Account 98 scandal hangs over HSBC, and Kofi Annan's Oil For Food investigation of Iraq looms over HSBC Plc.

HSBC Watch (this website) was told of thousands of attorney general complaints regarding Household - aka HSBC Finance Corporation. Documents suggest that between mandatory binding arbitration, wording in the $484 million nationwide predatory lending settlement, and wording in the $11 million Shea v Household settlement HSBC feels immune from further customer retribution and lawsuits.

Consumer reports filed with HSBC Watch (this website) indicate new trends, or a failure of compliance officers and training programs to stop old trends which already resulted in suits and settlements. Without admitting nor denying that certain incidents took place it is bold of HSBC to continue abusing the consumer in the same manner. To do so is not without legal precedent however, as seen in our document "The History of Predatory Lending With an Emphasis on Household International and HSBC Finance Corporation."

In 1998 California's Department of Corporations sued Household International to stop Household from charging excessive administration fees after the company admitted to 36,000 instances where it had violated state lending laws and violations. In 2001 California sued Household again after discovering that not only did Household fail to comply in 1998, but began even more abusive lending practices and passed these practices on to sister company Beneficial Finance.

Thus we have the precedent, current consumer reports, trend analysis and database analysis for 2005. Inner City Press, Community on the Move, Acorn, and Household - HSBC Watch continue to scrutinize HSBC every day, 24/7, because of Household International aka HSBC Finance Corporation. HSBC Watch (this website) continues to contact, help, and advise regulators and attorneys of consumer reports that are either disturbing, that show a trend, or that display some type of possible illegal activity.

Let us clarify the term "illegal activity." We use the term when something as simple as a violation of Regulation Z truth in lending is reported. HSBC staff should be well trained and competent in understanding Regulation Z. Some of our emails and phone calls indicate that customer service staff are very knowledgeable but supervisors may distort customer service issues. At times the term "illegal activity" may go well beyond truth in lending, but for legal reasons we neither imply nor suggest such on this website.

TALKING POINT 2005 - BEST BUY CREDIT CARD

HSBC Watch thinks someone will challenge the period of 10 years during which Household International perpetrated Shea v Household, and as such, someone will perhaps file a RICO suit against Best Buy, more than 60 other merchants, and HSBC Finance Corporation. The legal precedent is a RICO suit against H&R Block and Household. Since Household (aka HSBC Finance Corporation) paid a percentage of collected amounts to the merchants as ongoing compensation, each merchant benefitted from Shea v Household. Also to be considered is that if Shea v Household drastically reduced ongoing compensation it would effect merchant earnings. Conversly, if merchants knew of Shea and condoned it the merchant also knew why earning fell off. Another possibility exists - that Shea v Household did not deter or stop abusive predatory practices.

TALKING POINT 2005 - ANOTHER NATIONWIDE SETTLEMENT

HSBC Watch conducted interviews with state Attorney's General in 2004. An inordinate number of complaints exist in almost every state, many of which confirm reports sent to HSBC Watch by consumers. Trend analysis suggests that even though revenue is down at HSBC Finance Corporation aka formerly troubled predatory lender Household International, some practices may still exist which may cause problems for HSBC in 2005.

TALKING POINT 2005 - HSBC REPUTATION - DARFUR, OIL FOR FOOD, AND FUNDING OF SUICIDE BOMBERS

Although HSBC guards its reputation they did purchase Household International. Now called HSBC Finance Corporation, the troubled predatory lending subsidiary brought enough trouble to HSBC in 2004 including a huge drop in overall earnings. HSBC's purchase of Household International is what causes Americans to look closely at issues such a genocide in Darfur, HSBC's Account 98 link to suicide bombings and terrorism, and the United Nations Oil for Food investigation, which is also being followed closely by Bill O'Reilly and Fox News. In 2005 investigators will follow almost US$20 million from the Sadaam Hussein regime. In fairness to large worldwide banks HSBC Watch realizes it is difficult to monitor every bank account. It is because of Household International's disregard for the California Department of Corporation order, disregard for HSBC compliance officers while perpetrating Shea v Household, and other documented cases of total disregard for authority that investigators watch HSBC closely. It is part of the cost of doing business. Watch for startling developments in 2005.

If there is a proven link between between suicide bombings, Saddam Hussein, or terrorism, some consumer advocates will make an immediate and strong plea for termination of an agreement between UMUC (University of Maryland) and HSBC Finance Corporation underwhich Household claims to offer financial training for the United States military. UMUC has a government contract to provide college courses to the United States military.

TALKING POINT 2005 - RACKETEERING (RICO) WITH H&R BLOCK

Many believe 2005 will be the year the predator will become the prey. Now that profits are going to the United Kingdom, regulators and lawmakers will scrutinize how those profts are made. Others wait to see how Household and Block's RICO suit will effect both companies and what precedent will be set.

TALKING POINT 2005 - M&S MONEY, MARKS & SPENCER

Before HSBC acquired Household International many US consumer organizations opposed the acquisition on the grounds that they opposed the exportation of predatory lending practices to other countries. Advocates and opponents of predatory lending will watch the situation carefully with regard to credit card processing in the UK. If the same PREVIOUSLY-USED tactics witnessed in the US manifest themselves in the UK, and if HSBC Watch receives reports of a similar nature from consumers it will be reported immediately.

SUMMARY

We ask consumers to send trouble reports and consumer experiences in the years to come. Write your report in the appropriate forum. If your experience resulted in a bankruptcy consider writing a report in Google Groups under alt.bankruptcy and alt.consumers.experiences. These groups are monitored and pulled into websites. Don't disclose personal information, but do mention the name of the companies involved. Prevent other consumers from falling into the same trap and help regulators see trends. It's one way to turn a negative into a positive.

Household - HSBC Watch will continue our efforts for you in 2007 and beyond. We will watch our talking points for 2005 to see how the issues develop. New trends will be added as we see them.