HSBC needs every dime, dollar, pound, and pence they can make. It appears as though HSBC is saving money by forgetting to date their credit card offers, but you can be the judge: “Last year, I applied for a Best Buy RewardZone MasterCard, for which I was told, and the paperwork confirmed, that there would be NO ANNUAL FEE. So much to my surprise my first statement came with a $59 annual fee. Customer service was of no help here either. They just said it was their policy to charge an annual fee, and the paperwork I had was outdated. I didn’t see any “expiration date” on the brochure I was given when I applied, and I though “bait and switch” was illegal. Only after much complaining did they offer to waive HALF the fee. I rejected their “generous” offer, I applied for a NO ANNUAL FEE card, and if you’re not willing to supply that than I don’t want your card and asked that it be closed.” (see full report)
Archive for » September, 2008 «
How bad are foreclosures at HSBC Finance? I thought people were getting a lot of phone calls, judging by the reports and complaints we receive. Some idiots, like NovaStar, were calling home owners early in the month, even before the payments were due. I thought these subprime lenders were checking to see if the person even lived there any more. Add HSBC to the list of offensive idiots. “They also call me at work and ask me when I am making my payment. I tell them my payment is not even due yet and then they ask me if I intend to keep my property?” (see full complaint)
We saw this on September 16th: “Investment banks must move quickly to strengthen their balance sheets and address their lack of funding if they are to come out of the current financial crisis unscathed, a senior banker at HSBC has warned.” A warning from HSBC? Acting like a global authority HSBC fails to remember that their own subprime units — HSBC Finance and Decision One Mortgage — facilitated, financed, or bought subprime loans at a fast pace. Unfortunately HSBC slammed on the brakes too late. The net result was that HSBC in the United States was one of the largest subprime financing operations. Tainted paper went into the system, SIV’s were effected, and bonds were sold.
HSBC Securities Services is known to be Lehman’s trustee across multiple jurisdictions, said Asian Investor. “The current crisis will no doubt put its trustee function to its most strenuous test to date. After multiple calls to various business heads of the group, no one has been able to respond to AsianInvestor’s question on what contingency plans HSBC has to recover assets for investors.” So what good is a trustee that doesn’t know what their position is? Hong Kong’s Securities & Futures Commission and Singapore’s Monetary Authority of Singapore say they are still working with the trustee, HSBC, to identify and price outstanding exposures to Lehman structured products.
After issuing ultimatums and deadlines to Korean authorities, and forgetting to submit a new application, HSBC finally gave up on Korean Exchange Bank (KEB). Lonestar was involved, the courts were involved, and eventually somebody from Lonestar, Paul Yoo, was found guilty. Here is how you clean up all of this mess when you change your mind: “In the light of developments around the world, not least changes in asset values in world markets, we do not believe that it would be in the best interests of shareholders to continue to pursue this acquisition on the terms negotiated last year,” HSBC Asia Chief Executive Officer Sandy Flockhart, who is also HSBC Executive Director, said.”
