HSBC Calls Household a Disaster, Customers 80 Percent Dissatisfied Too
A whoppping 82 percent of cardholders report dissatifaction with their HSBC backed credit card. See the survey here. The link will open in a new window so you can take the survey easily. Over 600 people took the survey, thus the unsatisfactory rating for HSBC is not from a random small sample. Most appear dissatisfied with HSBC Finance Corporation - the predatory lending arm of HSBC in America formerly known as Household International.
In late breaking news of January 16, 2007, we also found this supporting documentation from one analyst, which seems to support dissatifaction by HSBC customers:
“The most recent high profile mortgage distress signal came from HSBC, the world’s third largest bank in marketcap size behind Citigroup and Bank of America. What an unmitigated disaster their acquisition was in 2003 of Household International, a lender to subprime borrowers. HSBC increased their loan loss reserves to $1.38 billion in Q3 from $1.25 billion in Q2, and reported a 3.99% delinquent rate (over two months past due) for mortgages, car loans, and credit cards. They admit not to doing their homework before the acquisition of Household, a financial firm specializing in deadly adjustable mortgages.” (published here - see full article) published on Wednesday, January 17, 2007
Advocates at Household - HSBC Watch cautioned HSBC back in 2003. Household International was headed for legal problems and bankruptcy. HSBC finally admitted in 2007 to failing to do their homework. At Household - HSBC Watch we were asking “What were they thinking” back in 2003. As William F. Aldinger lied to his employees and sold a cow’s ear as a silk purse to John Bond and HSBC the only winner in the entire scam was William F. Aldinger.
Disaster for HSBC? And a disaster for custoemrs? The bottom line is HSBC made no effort to stop predatory ways at their newly renamed HSBC Finance Corporation. The same shady tactics, the same customer service, the same answers, the same delays, and the same complaints. HSBC has a problem in that profits will only get worse if they do take some action like firing everyone at HSBC Finance Corporation, or processing payments on time in a professional manner. HSBC cannot afford Household International either way. Profits from predatory lending by HSBC in America came from lower cost of borrowing from HSBC USA, not from actual profits.
Another issue confronts HSBC. They want to make great strides in the United States as a reputable bank. The problem with their logic is that it would have worked had they not acquired Household International. With over 80 percent of customers already dissatisfied how will HSBC, HSBC USA, and HSBC London ever win the hearts and minds of consumers? The answer is they won’t.
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Relax -
These guys make huge fees from late fees, payment by phone, high rates, false statements, improper billing, and more. Such companies have fallen in the past. HSBC bought a predator and still allow it to run like a predator, staffed by predatory employees, and skirt the law. The masses must rise up, report predatory lending to their State Attorney General, and not rely on the good old boys in Washington for help when fighting HSBC. Look at Bob Ney as an example of an elected crook. Fight your battle at the state level.