HSBC finances Polaris products. Polaris has relationships with HSBC Bank (”HSBC”) and GE Money Bank (”GE”) to provide retail revolving and installment financing credit, respectively, to United States consumers to purchase Polaris products. According to a recent Polaris press release, availability of retail credit to Polaris consumers remains at acceptable levels as measured by approval and penetration rates. During the third quarter 2008, over 50 percent of consumer retail credit loan applications from Polaris customers were approved by either HSBC or GE, and 41 percent of Polaris retail customers in the United States financed their Polaris product purchases through HSBC or GE. Both the approval rate and penetration rate increased during the 2008 third quarter compared to the 2007 third quarter despite turbulent credit markets.
It is interesting to note that is hard to pay down the balance of a credit card with daily interest. Customers must have an assurance that payments will be processed in a timely manner. For the last five years customers complained that no such assurance is given. Lack of prompt payment processing is not limited to Polaris accounts, and has been reported with other merchant accounts.
In 2006 Polaris and GE Consumer Finance’s Retail Sales Finance Division agreed on a new, multi-year partnership that will provide Polaris customers with installment financing primarily for Victory motorcycles. (Dealers in the past worked with HSBC financing for Polaris products. Dealers can continue to use HSBC financing for all of Polaris’ other products.)
Since 2006 the dealer makes the decision. Is HSBC likely to approve deals turned down by GE? Think of it another way, if you will. How many customers complained about HSBC financing? How many returned to the dealership to threaten them when HSBC pulled shady deals and tactics? Use this link to see complaints about HSBC financing for Suzuki and Kawasaki.
To see how motorcycle financing works with an HSBC credit card see The Truth About Suzuki Financing
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