Loan Losses Ahead for HSBC North America Holdings
September 29, 2005 Credit card delinquencies shot to a record high in the second quarter, as consumers tried to keep up with rising gas prices and increasing interest rates without curtailing spending, a report showed yesterday. The percentage of credit card accounts that were 30 days or more past due rose to 4.81 percent during the April to June period, up from a revised 4.76 percent in the first quarter, the report from the American Bankers Association found.
“What the delinquencies tell us is that there are more people who are under financial stress,” said James Chessen, the association’s chief economist. “The rise in energy prices is sucking up much more of households’ budgets than they ever did.” According to consumer advocates at HSBC Watch this means tougher times ahead for HSBC Finance Corporation - the old Household International. “While some consumers may go to HFC or Beneficial Finance for temporary relief others are cash strapped, resulting in more loan losses for HSBC. There may be a spike in profits through HSBC Taxmasters rapid tax refund loans, which will be a good indicator of how much the average family is hurting” said the group.
Thinking of making a debt settlement offer? See common settlement scams and rip-offs firstRelated Posts
- Bankruptcy bill backfires on Bush
- Record Late Credit Card Payments Hit HSBC Hard
- Rising Gas Prices Pressure Predatory Mortgages
- Downturn in housing market getting worse
Related Searches: tax refund loans, credit card delinquencies, rapid tax refund, american bankers association, credit card accounts







We monitor customer trends for possible violations of Regulation Z and other possible illegal actions.