Household HSBC Watch

HSBC Direct announced a new promotion and sweepstakes but the offer may not be very good. Since HSBC Direct is part of HSBC USA - HSBC North AMerica Holdings we wonder how much information is shared within the company. Primarily we are concerned about HSBC Finance Corporation - which is the old Household International. Will customers receive offers for store credit cards? High interest loans? Second mortgages or home equity loans?

As we write this article our PayPal is paying 5.05%, while HSBC’s “new collection of HSBC Direct high-yield online CDs” claim to pay 4.85% APR. HSBC Direct is HSBC Bank USA’s online-only banking business that offers deposit accounts with competitive interest rates and no monthly fees. How does the bank make money? Marketing of course, but the venture also puts cash into HSBC’s system. I’m sorry to break the news but as long as we have over $350 in out business bank account we have no monthly fees. Our personal accounts have no fees at all because we have direct deposit. And, as we already said, our PayPal pays more than HSBC.

As long as HSBC owns former predatory lender Household International, now called HSBC Finance, any new promotion is suspect. A new sweepstakes is a gamble. Many years of analysis by Household - HSBC Watch Consumer Advocates shows HSBC Finance can effect credit scores of prime and subprime borrowers. New complaints and horror stories are posted daily.