Household HSBC Watch

By TIMOTHY J. GIBBONS
timothy.gibbonsjacksonville.com, (904) 359-4103
The Times-Union

Household International Inc. is shutting down its automotive finance division in Jacksonville, laying off the 119 call center employees who work there.

The shutdown will not affect the company’s two other divisions, which handle private-label credit cards and tax-refund anticipation loans. Those divisions — retail services and refund lending — are also based at Jacksonville International Tradeport and employ about 330 workers between them.

The shutdown and layoffs should be complete by May or June, company spokesman Mark Friedlander said.

Household International, based outside of Chicago, has had a facility in Jacksonville since 1998. The company was one of the first office projects on the Northside to receive incentives, getting up to $300,000 over 10 years in tax rebates. The rebate total was dependant upon the company keeping 400 jobs at the facility.

The collection work handled by the auto finance division will be consolidated in existing facilities in San Diego and Lewisville, Texas, Friedlander said. The company has developed a stronger portfolio of loans with fewer defaults, he said, and so requires fewer collection agents handling phone calls.

Jacksonville employees can apply for open positions in the remaining divisions or ask to transfer to the Texas or California facilities.

Employees accepted for jobs in the other locations will have relocation expenses paid. Laid-off workers who don’t find positions elsewhere in the company will receive severance packages of at least four weeks pay, Friedlander said.

The 123-year-old consumer lender provides consumer loan, credit card, auto finance and credit insurance products in the United States, Canada and the United Kingdom.

The Household Watch Position on this article:

Friedlander says Household has a stronger portfolio and thus they require fewer agents. In reality these jobs are going to India.

In the past Friedlander said Household did not send out bills late in the billing cycle, thus preventing customers from getting a payment in on time. Friedlander also played dumb on the issue of payments which credited one day after the billing cycle closed.

Again, in reality, Household was settling Shea vs Household for $11 million (USD)

Shea vs Household covered a period of almost 10 years wherein Household credited payments late and mailed late in the billing cycle.

Friedlander has little credability when it comes to truthful statements, thus the reader should not assume Friedlander’s “stronger portfolio” is a valid reason for the Jacksonville closing.