Household HSBC Watch

“I have seen other companies pursue this strategy in the past, but I see it at a decreasing rate,” said Gary Hawkins of Hawkins Strategic. “It seems fewer are pursuing private-label credit cards today. Retailers just have not seen the relationship return from it.” “Private-label credit cards rarely capture more than 10 percent of total business,” Hawkins said.

What does the future hold for HSBC’s predatory credit card operation formerly know as Household International? Private label credit cards were key to their business model, subjecting customers to questionable billing tactics. Best Buy Stores is one of HSBC’s largest merchants. A full list can be seen at the bottom of our pages, while financials show many merchants are troubled merchants.

Having lost the battle over predatory lending, most americans still associate the Household International name, and their related credit cards, to high interest rates and lawsuits. Home mortgages through HFC and Beneficial have the same stink and stigma. Where does HSBC go from here? Their tax refund lending program has federal racketeering charges pending against H&R Block and HSBC. Simply put, HSBC and Household, now called HSBC Finance Corporation, cannot be trusted.

If HSBC plans a name change, consumer advocates like Household - HSBC Watch will inform the world of prior relationships. If HSBC rolls operations into their present business model reputation will suffer, driving customers away from above-board banking operations. And finally, if the “Household Model” is exported to other countries before U.S. operations close down consumer advocates say they warned the U.S. government back in 2002. The stink of Household International and HSBC Finance Corporation will be with HSBC around the world for years to come.