Household HSBC Watch

The Office of Fair Trading will call for an end to the three-day clearing cycle when it publishes its long-awaited investigation into Britain’s banking money transmission services on Tuesday. The antiquated clearing system, which dates back to the days when all transactions were manual and mountains of paper had to be transported between banks on the back of carts, is a source of constant complaint.

Meanwhile in the United States investigators are asking how HSBC North America can have a clearing cycle whereby payments clear one day after the due date. The tactic is used by HSBC Holdings subsidiary HSBC Finance Corporation which is the new name for disgraced predatory lender Household International. See Household - HSBC Watch for more.