HSBC Horror Stories

As HSBC Finance begins to crumble people should understand the history of predatory lending with an emphasis on Household International and HSBC Finance. Our case study is found on eBay, and proceeds support the Household - HSBC Watch watchdog program and keep their volunteers busy instead of getting real jobs like being the greeter at WalMart. (Our volunteers are really old)

At Household International William F. (Bill) Aldinger III took a once-reputable company into the dark world of predatory lending. Up-selling, insurance packing, lack of statements, Shea v Household, and many other questionable tactics made Household International, and now HSBC, a highly questionable mortgage lender and equally questionable credit card processor. In every case Household, and later HSBC, settled without admitting any wrongdoing. Customers are limited by binding arbitration. Regulators hit stumbling blocks because of HSBC’s structure where holding companies have more holding companies. The Association of States Attorneys General was successful in a landmark $484 million nationwide predatory lending suit against Household International.

Analysts say Household International would have eventually crumbled had HSBC not purchased the troubled company. Employees of Household International were heavily invested in company stock as part of their retirement. Most were forbidden from selling their stock, in essence keeping the company privately controlled. In that regard one must be thankful that Aldinger didn’t ruin the company, as did Richard Scrushy, John Rigas, WorldCom CEO Bernie Ebbers, and participants in the Enron debacle.