Household HSBC Watch

In spite of over a decade of complaints, charges of predatory lending, and lawsuits, Lumber Liquidators signed a credit card deal with HSBC Finance Corporation. For many companies and their investors a decision to sign with HSBC is a sign of a troubled company. Time will tell, but many sign with HSBC to take advantage of “ongoing compensation” - kickbacks on late payments and high interest. HSBC has been under investigation for telling customers their payments were late when in fact payments were not late.

Credit Lumber Liquidators with not being able to read daily complaints ( see here ) and not investigating Shea vs Household (HSBC). If Lumber Liquidators wants to alienate a percentage of their customer base they found a way to do it. Questionable financing from a lender that settled the largest predatory lending lawsuit in America is a good way to lose customers.

HSBC Finance Corporation’s card and retail services business has formed a strategic alliance with Lumber Liquidators, the nation’s largest direct retailer of hardwood flooring, to grow its credit programs. HSBC will provide Lumber Liquidators commercial customers with customized business payment solutions, and also offer their consumer customers flexible credit options.