HSBC Watch News Release Forum Index
Forum Name: - Opinions
Topic Title: Oreck Signs New Contract With Predatory Lender
Wed Oct 27, 2004 10:31 pm
HSBC - North America announced that its retail services business has signed Oreck Corporation to another multi-year, private-label financing agreement in late October 2004.
HSBC North America's Retail Services is the new name of Household Retail Services, a subsidiary of troubled predatory lender Household International. No matter what the name is now, Oreck renewed their contract even after Household and HSBC was charged with crediting customer accounts one day late, earning millions for Household and Oreck. Other merchants also received ongoing compensation under the fraud outlined in Shea v Household.
While the Oreck name has become synonymous with its lightweight commercial and residential upright vacuum cleaner, the company is a leading manufacturer and marketer of premium products for a healthier home. The company has a full line of high-quality, easy-to-use home cleaning products including full size canisters, air purifiers, and steamers.
The new contract extends the nine-year relationship between HSBC Retail
Services and Oreck.
When you hear an Oreck commercial on TV or Radio, remember that Dave Oreck says you will be pleased, but perhaps not with the financing. Experts report that the average credit score was reduced by 70 FICO points when Household and HSBC decided to credit payments late. In many cases other creditors increased the borrowers interest rate on non-Household credit cards.
Finance an Oreck with an Oreck credit card and you might possibly, oh, wreck your credit score. Find financing elsewhere to be safe. Shame on Dave Oreck who, based on past legal actions against Household, should have known better. Perhaps the kickbacks (ongoing compensation) were too much to turn down?
Sun Oct 31, 2004 8:48 am
So another company has chosen Household to handle their accounts. What a surprise!
I have two questions: how does Household manage to lure so many merchants into their snare?
Secondly--Household provides the financing for so many merchants that one is hard pressed to find someone who doesn't use them. I thought that no one lender could have a monopoly on this service. Doesn't the huge amount of merchants Household services constitute a monopoly?
All I can envision is an octopus with its tentacles spread far and wide, engulfing all these stores in its grasp. How are they allowed to service so many businesses?
Thanks for any replies.
Tue Aug 02, 2005 2:42 pm
Call Oreck 1-800-989-3535, tell them you would consider buying their products if they were not using Household.
Before placing an order ask the sale person who they use for financing. Then promptly tell them you are not interested in their product or you will try to find financing elsewhere. Tell the sales person to inform management at Oreck why you have decided to look for alternative financing and perhaps a competitive product. I’m sure Dave’s smiley face as seen on his infomercials will not be smiling to long if enough of us do this and he may change his mind about who he does business with.
Wed Aug 03, 2005 6:19 am
Whenever financing is mentioned, I ask the store clerk who handles it. If they say Household, I walk out of the store, but not before telling them why.
It gives you that nice warm feeling inside.
We monitor customer trends for possible violations of Regulation Z and other possible illegal actions.