Do you really want a credit card from an HSBC merchant? According to a lawsuit filed in Illinois, HSBC found customers by scanning lists of people who held mortgages and also had high credit card balances with K-Mart, Best Buy, Costco and other retailers affiliated with HSBC that provided the lists.
After aggressive mailings and phone calls, HSBC would “trick” the homeowners into providing their Social Security numbers, which allowed HSBC to gain access to their complete credit histories, and use the information to talk people into high-interest consolidation loans, the suit says.
The loan amounts were so high - and with interest up to 20 percent - that they often far exceeded the value of the homes, and made it impossible for the family to ever refinance with a competitor, according to the lawsuit.
HSBC settled that lawsuit, denying any wrongdoing.
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