Household HSBC Watch

According to a Reuters report, Interpublic Group of Cos. Inc. said on March 15, 2005, it would defend its advertising account with General Motors Corp. , which has put its ad business, estimated to be worth at least $2.8 billion, up for review.

According to consumer advocates at Household - HSBC Watch, which monitors predatory lender HSBC, General Motors should re-examine the wisdom of allowing HSBC Retail Services to back the GM Card. “HSBC Retail Services is the new name for predatory lender Household International, known throughout the US for evictions, foreclosures and regulatory violations” said a spokesperson for Household - HSBC Watch.

One consumer horror story sent to the organization said “Two years ago my median FICO score was 740. In 2003 I needed to leverage my cards to their limits - the first time in about 6 years. Banana Republic reported one 30 day late payment, an error, which I didn’t know about until AMEX raised my rate to 13% and suddenly lowered my limit. GM followed by raising my 6.9% rate to 24.99!”

Allowing any predatory lender to be associated and affiliated with a business name is questionable at best. General Motors must cut ties with Household, HSBC and predatory handling of the GM credit card or suffer the consequences. Customers report that they will never buy another GM vehicle again, after suffering at the hands of HSBC. That is a mistake GM cannot afford, and one which can be easily rectified.