In the US Banker section of American Banker, we spotted an interesting line: “The concern was, ‘How much subprime do you do? What is your risk of having what Household (International) had?’” It was a question asked of Richard Davis, CEO of U.S. Bancorp, in February 2007. HSBC bought Household in 2003, but the predatory lender is still so famous and synonymous with high rate high risk loans that the name will never go away. It is a quick and easy way to delineate. Ask about HSBC, and people may ask “which part?” Or ask about HSBC Finance and people may ask “What is that?” But mention Household International and most people know exactly what you are talking about.

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This is published exactly like we received it. TG in California said: “I’m a happy and proud employee of HSBC in California. I see the positive impact we make on our customers lives every day. I regularly read postings on your site and am stunned and the lack of accuracy and fairness here. I’d like to suggest you install a brief IQ test in the submission section. I think doing so would go a long way to validate some level of intelligence is behind each ‘complaint.’”

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The difficulties of operating in unstable emerging markets was demonstrated this month when HSBC, amid an invasion by Russian forces, removed the family of its chief executive in Georgia from Tbilisi, two months after the bank’s $17 million start-up in the city had opened. HSBC said that it remained committed to operating in Georgia. However, these new customers appeal to HSBC as a source of profits while mainstream U.S. and U.K. customers produce fewer profits.

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NEARLY half of all mortgage shoppers use the Internet to do research on mortgages. If your research got you to this website you have reached Household - HSBC Watch consumer advocates, a watchdog organization not affiliated with HSBC in any way. You are doing your homework, however, and digging deeply. Perhaps HSBC bought your mortgage, or more accurately, the servicing rights. Did you have a second mortgage or home equity line of credit with HSBC, but a mortgage with another lender? Foreclosures whereby HSBC has no rights to the first mortgage, thus HSBC has a subordinated position, leaves HSBC without anything if the property goes to bankruptcy and foreclosure.

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This is a perfect example of HSBC’s exportation of the Household International model of doing business. Credit card interest rates have been increased to as high as 50 percent in India. While proud of making a profit in developing nations HSBC is not alone. ICIC, Deutsche Bank, SBI and HSBC have either raised or are in the process of raising the “finance charges”. To top it all, these high charges, which varied between 30-40 per cent until a few days ago, fly in the face of Indian regulators, who recently said “charging of interest at rates in excess of 30 per cent per annum from the credit card holders by banks for the formers’ failure to make full payment on the due date or paying the minimum amount due, is an unfair trade practice.”

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