Household HSBC Watch

HSBC Holdings has targeted California and Florida as markets for deeper penetration in connection with its plans for U.S. expansion. CEO Stephen Green noted in the interview that HSBC doesn’t need to make acquisitions to achieve its U.S. expansion goals. The London-based banking giant spent $15 billion to acquire Household International in 2003, giving HSBC a major presence in the consumer finance market.

However, Florida began investigating Household International, after Madie Bell Wilson, 89, was evicted from her Miami home. She had taken out a $27,000 home-equity loan, thinking it was a home repair grant that did not have to be paid back. The case piqued Florida officials’ interests and helped lead to the $484 million multi-state predatory lending settlement.

California sued Household International in 1998 on behalf of 36,000 Californians, but in 2002 California discovered Household had ignored the ordered settlement, and in fact abuses got worse and were also being practiced at Household’s subsidiary, Beneficial. California also took part in the $484 million settlement in 2002.

“Green is out of touch with reality and underestimates the stigma attached to Household International’s name, reputation, and efforts of websites that educate consumers to HSBC’s current operations” said advocacy group Household - HSBC Watch. “It diminishes the reputable side of HSBC, which may soon be seen as a predatory banking operation which takes advantage of minorities, the poor, and the uninformed. Consider tax refund loans for example” said Household - HSBC Watch.