Analysts at Household – HSBC Watch predicted credit card problems at HSBC Finance. Today Moody’s announced what we suspected. HSBC Finance, formerly Household International, is now having problems with credit card defaults. Moody’s Investors Service on Tuesday changed its outlook on HSBC Bank USA, part of HSBC Holdings Plc, to negative from stable, saying the bank’s U.S. operations are likely to face financial pressures for the foreseeable future. “HSBC USA made increased provisions for credit losses in the third quarter of 2007, largely driven by its credit card portfolio,” Moody’s said in a statement. “Moody’s expects that credit costs will remain elevated over the coming year.”
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Popularity: 7% [?]
HMC is a wholly owned subsidiary of HSBC, which is a subsidiary of HSBC Holdings Plc. HMC is located in Depew, NY, with a subprime collections unit in Elmhurst, IL. In addition to its U.S. locations, HMC has operations in HSBC’s group service centers (GSC) in Bangalore, India and Manila, Philippines.
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Popularity: 4% [?]
Another HSBC merchant is going out of busiiness. CompUSA, the computer retailer that Mexican billionaire Carlos Slim owned since 2000, will shut its doors after 23 years, succumbing to competition from Best Buy Co. and Wal-Mart Stores Inc. On the CompUSA website it says “Same as Cash offer on approved purchases made on the CompUSA Consumer Credit Card issued by HSBC Bank Nevada, N.A. No Finance Charges if purchase paid in full in 6 months.” The offer fails to tell you what happens if you can’t pay online, don’t get a statement, or if HSBC fails to send your statement for the sixth month.
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Popularity: 10% [?]
Here is another class another class action that involves HSBC, among others. The class action suit states that the credit card companies were hiding fees up to 3 percent in foreign transactions by cardholders outside the US, which is a violation of both federal and state laws. Additionally, the class action suit attempts to convict Visa and MasterCard for inflating the base exchange rates before applying fees. The period covered is from the mid 1990’s through 2004.
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Popularity: 8% [?]
This week HSBC will focus on India. It seems as if HSBC is all over the map with ideas. One fact that is perfectly clear is that HSBC is unhappy with U.S. mortgage lending. What makes the report about India so interesting is that last week HSBC discovered that people were unhappy with calls answered in India, thus HSBC said more calls would be answered in the UK. Seems like a lack of focus or continuity has no bearing on the matter.
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Popularity: 4% [?]
