In a recent telephone discussion with the Office of the Comptroller of the Currency (OCC) Household - HSBC Watch learned that federal regulators were in complete disagreement about who should regulate and control Household Finance Corporation. A division of Household International, now owned by HSBC, Household Finance was the target of predatory lending charges. Complaints were so overwhelming from almost every state in the United States that one can see where nobody wanted to admit to responsibility for HFC. Responsibility was tossed around like a hot potato. States Attorney’s General finally stepped up to the plate to hit a home run against these bandits, while the OCC wrote tougher rules and regulations against predatory lending. OCC rules went into effect three years after Household’s nationwide $484 million settlement.
As a final thought, $484 million was the agreed upon amount, as Household International said a larger settlement might put them out of business. However, Household was about to be sold to HSBC, a fact that was not disclosed. Was that a lie or a failure of omission? You decide. While $484 million did not adequately compensate HSBC’s victims of predatory lending, had we left the situation in the hands of federal regulators nothing would have happened. Why not? You decide!
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