HSBC Watch News Release Forum Index
Forum Name: - Opinions
Topic Title: Helzberg Diamonds Credit Card from Predatory Lender
Fri Oct 22, 2004 4:29 pm
HSBC - North America announced on October 20,2004 that its retail services business has launched a private label credit card program for Helzberg Diamonds, a recognized name in the fine jewelry business for more than 80 years. The new private label credit program claims it will complement Helzberg's current sales strategies by providing quick and efficient processing, as well as personalized customer service for a positive customer and sales associate experience.
Consumer advocacy organization Household Watch stated that Helzberg had time to perform due diligence. Should HSBC - Household come under scrutiny for RICO charges relative to late application of payments and other charges Helzberg may escape scrutiny depending upon they way their contract is written and the type of "on-going compensation" they receive.
Helzberg Diamonds is a subsidiary of Berkshire Hathaway. Previous experience with HSBC - Household during the period covered by Shea v Household was through RC Wiley, which was acquired by Berkshire Hathaway. At that time Household Watch stated "Warren Buffet's Bershire Hathaway and a company like Household International are not even in the same league." They may be in bed now.
One of the largest national jewelry chains, the company operates more than 250 stores in 35 states. Helzberg Diamonds was founded in 1915 by Morris Helzberg and remained in his family until 1995, when it was acquired by investment guru Warren Buffett's Berkshire Hathaway. Long a mall-based chain, the company opened more than 45 freestanding locations in the 1990s. Helzberg Diamonds offers a 100-day return or exchange option and free jewelry repairs for 12 months after purchase.
Household - HSBC Watch states that most likely problems will revolve around the 100 day return policy, proper application of payments, and potential failure to apply credits.
We monitor customer trends for possible violations of Regulation Z and other possible illegal actions.