Household HSBC Watch

The U.S. Postal Service wants to strike another deal to offer discounts to boost first-class mail volume and save money by destroying rather than returning a company’s undeliverable mail. The negotiated service agreement with financial services company HSBC North America Inc. of Prospect Heights, Ill., would be the fourth such agreement proposed by the Postal Service. The first agreement, with credit card company Capital One Services Inc. of McLean, Va., generated $21.7 million in savings and revenue in its first year for the Postal Service.

Consumer advocates Household - HSBC Watch oppose the initiative on the basis that HSBC cannot be trusted to mail statements to consumers in the first place. Citing Shea v Household, Household - HSBC Watch said the issue leaves consumers without any defense. There is no record of a postmark when a statement is mailed, it is not returned, and the mail would be destroyed. Thousands of consumer complaints indicate that customers got their statements during “no interest” promotions, but in the final months of the promotions they did not get a statement, apartment numbers strangely disappeared or were wrong, or bills started going elsewhere. “This is a bad initiative from a company that already proved they cannot be trusted. It is a matter of public record. It also puts an end to filing mail fraud reports. The postal service destroys the evidence” said Household - HSBC Watch. HSBC Finance Corporation supports the idea.