HSBC Management Credibility Damaged, No Insurance Deal
HSBC has big ambitions to expand into insurance, but after the American sub-prime mortgage fiasco, management’s credibility is still too damaged to attempt a major deal. Eventually there might be such a moment. HSBC is set to repeat insurance problems which skyrocketed Household International to the top of predatory lending scrutiny.
In addition to insurance as most think of it, HSBC wants to get into insurance so they can self insure, at a cost, their loans which would include sub-prime and near-prime loans. Insurance packing, as it is known, was one reason for Household International’s US-wide $484 million (USD) lawsuit. If HSBC cannot process loan payments on time the thought of letting them sell insurance is frightening. We said ‘management’s credibility is still too damaged to attempt a major deal’ by which we mean HSBC Finance Corporation, HSBC North America, and complaints across the United States make it highly unlikely a deal would ever get regulatory approval.
If regulatory approval is received it will come at a cost, and HSBC would begin a process of forcing insurance on car buyers and mortgage holders, after claiming their payments were late, thus their loans are uninsured. That’s the same thing that got Household International in trouble. History repeats itself, but HSBC’s Household International deal stained HSBC to the point where selling insurance is highly unlikely in the near future.
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These thieves made my payment dues date on a sunday for a GM Card. Then, after a day of no mail for a snow storm, and in the height of holiday rush, my payment which was mailed in plenty of time was recieved 3 days late.
They put the rate in default and I told them to cancel the card.
They refuse to help people and admit they are wrong. How can they get a payment if there is no mail delivery? I will transfer their balance with the exception of the interest of 32.24 percent. . They can eat that. They will never EVER get that from me. I do not care what they do,. I own my home outright . The amount might only be $45.00 or so but screw them.
Dear Writer:
I am sure that HSBC knew about the troubles with Household when they purchased the portfolio. However, HSBC paid over $56B to retrain the Household Int. staff for compliant lending and develop a system of checks and balances to ensure that history would not repeat itself. They have created and fostered an environment that has allowed many HSBC affiliate customers the peace of mind that they understand and are aware of the different types of loans they have. I do admit that no company is perfect but some of these developments are now used as recommendations from government agencies for other lending institutions to keep “predatory lending” from current lending companies. HSBC has been on the “front line” of the lending industry to foster growth and change to better the relationships between the consumer and the lender. Not all of the bugs have been worked out, but developments have led to a better understanding of what the consumer wants of HSBC.
If the practices of HSBC seem unfair I would think that the company would recognize this and allow customers to persue an answer that would be both fair and beneficial to both the Corporation and the consumer. Perhaps as a customer you could speak with a manager to reason your case, because at the end of the day the consumer is always right. I would think that HSBC would see that the above listed difficulties could not be avoided, with the mail system, and provide a solution to make the customer happy.
I personally have dealt with HSBC and have found the customer service to be very professional and my issues were taken care of in a timely matter to my liking. I don’t think any company is out to make enemies of their customers, and although I had a misunderstanding I will continue to do business with HSBC because I felt it was resolved.
I also don’t think that you can paint all sub-prime mortgage companies with the same brush. Although there is a lot of controversy surrounding the sub prime mortgage industry, HSBC’s affiliate companies Household Finance and Beneficial Finance have helped many people with less than perfect credit, become better educated on loans and have provided smart options that most consumers would not have. The industry is plagued with option arm products that are either resetting at higher rates or will soon. This is the cause of the fallout of many sub prime mortgage companies. Many of these option arms were not available and never were available at the Household and Beneficial levels. We all know the reality of these loans resetting at the higher rates and the huge impact on foreclosures this will have. Household Finance and Beneficial Finance have been working very hard to help these people who have terrible loans either get out of them, if they have equity, or help them prepare for the reset.
I trust that HSBC will stay with their commitments to help clean up the lending institution in the USA and abroad. If you are still unsure, visit any Household and Beneficial branch and ask them about their CPP, Consumer Protection Plan, and see the changes they have made, due to the merger with HSBC.
Thank you,
Kevin
A lot of things have changed over ther years. IE rates ownership etc however I truley beleive that HSBC regardless of the size of the comapny has its problems but at the root of it all is the customer. There is no way that HSBC is trying to upset its customers but things happen I feel in my heart that the company is making progress and even though the learning curve takes time. I beleive that they will eventually get it right…..
The company is all about money with no heart.
No one cares unless you owe them money but when the shoe is on the other foot all of a sudden they don’t know your name or they will call you back!
Whatever!
If you decide to apply for a loan with anybody especially HFC & you are a minority, read every single word on that contract!!!
Regards,
Ernestina Vidales Chaires Sutton