Household HSBC Watch

Regulators sent “guidance” letters to banks urging them to be more selective in their lending, and warning that their credit risk management practices have not kept up with the rapid growth of new products and gradual loosening of credit standards. They also urged banks to check up on borrowers with home equity lines of credit, to make sure their incomes and housing values had not fallen since the loans were first approved. “The OCC enacted new rules in April 2005 targeting predatory lending, outlining many issues seen on the Household - HSBC Watch website” said operators of the site. “Guidance letters and OCC action will hurt HSBC Finance Corporation and their ability to run roughshod over the American consumer, but they will become less predatory with mortgages and more predatory with credit cards” said the group.