Dillard’s went with GE, not Household International, a wholly owned subsidiary of HSBC. Reports that GE Consumer Finance does not suffer the tarnished image one associates with Household have not been verified but Household Watch suspects the reports are true.

Federated Department Stores Inc. said it plans to keep its credit card business, including the 1,900 local employees that go with it, despite the weekend announcement by a rival that it would unload a similar asset.

Dillard’s Inc. said on Sunday it would sell its in-house credit business to GE Consumer Finance for $1.25 billion, following similar moves by other retailers like Saks Inc. and Sears Roebuck & Co. that sold off financial functions in the past couple years.

Saks signed a contract with predatory lender Household International, and Household purchased some Sears home improvement accounts. Household Watch immediately began receiving complaints from former Sears customers. No complaints were received from Saks customers.

Dillard’s, an Arkansas retailer, said the deal will close by the end of the year and will include a 10-year service alliance where GE will handle customer care and provide marketing support.

GE sold some credit accounts to Household. Household Watch immediately began receiving complaints from some of those customers as Household began to service the accounts. Here is a sample from our forums:

“I had a loan through GECF. They sold it to HRSI. I called GECF and my payoff was $6012. Then I made my payment of $200 (which was to be my last one to them). I get my first invoice from HRSI, and suddenly my pay off is $7599! What a scam.”

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