An HSBC Finance employee advised us of this frightening move by HSBC, saying “As a current employee I am appauled to see Beneficial and HFC’s latest trick which seems to be avoiding federal caps on interest rates. As of May 5th they rolled out their new pricing sheets with rates set above the maximum Sect 32 rates set by the goverment. How can they do this? Simple – force customers to take “advantage” of their Pay Right Rewards system that lowers your interest rate by a whole .25% every year that you pay on time. This allows them to magically show you a much lower APR than the true rate you will be paying. The APR they show you assumes you will be keeping the loan for the full 30yrs and getting all 12 of the rate reductions.

However, in reality most customers only have to suffer on the books with us for an average of 36 months before they wise up and find another lender or get foreclosed on. I’m currently searching for a new job and will hopefully not have to live my life ashamed of what I do for a living for much longer. In the almost 10yrs I have worked for this company I have unfortunetly seen examples of almost every other upset employee’s post on this site and have had enough.”

The ironic point is that we just finished writing an article titled “Michael Geoghegan – HSBC Finance processing centers cannot be trusted.” Immediately after we finished the article another example was received. Please understand our position. Employees are not entirely to blame, and they must work within the guidelines set by HSBC. Granted, supervisors who subscribe to the ‘pay for performance’ standards of HSBC Finance can make it difficult for employees and customers.

Take heed as Brendan McDonagh, head of HSBC North America, and HSBC Chief executive Michael Geoghegan approve of this method of marketing and a way to get around federal caps on interest rates. It sounds like Household International all over again.

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