add site
services
publishers
database
health videos
toolbar
stats
live show
health store
more stuff
JOIN/LOGIN
| advertise add site services publishers database health videos
| | about toolbar stats live show health store more stuff JOIN/LOGIN |
HSBC Finance Corporation is a financial services company and a member of the HSBC Group. It is the sixth-largest issuer of MasterCard and Visa credit cards in the United States. HSBC Finance Corporation was formed from the legal entity that had been known as Household International, and is now expanding its consumer finance model via the HSBC Group to Brazil, India, Argentina and elsewhere. HSBC Finance Corporation’s subsidiaries primarily provide middle-market consumers real estate secured loans, auto finance loans, MasterCard and Visa credit card loans, private label credit cards, personal non-credit card loans and specialty insurance products. In 2009, HSBC Finance Corporation announced the discontinuation of loan originations of all products by its Consumer Lending business, but continue to service and collect the existing receivable portfolio as it runs off, while continuing efforts to reach out and assist mortgage customers with their loan repayments and home preservation. The Consumer Lending branch offices, branded in the US as HFC and Beneficial, had ceased taking new loan applications as soon as practical and substantially all branch offices will be closed as soon as commitments to customers are satisfied.
[edit] History[edit] Household FinanceHousehold Finance Corp. was founded in 1878 by Frank J. Mackey of Minneapolis, Minnesota. It claims that in 1895 it was the first financial company to offer the instalment plan, under which a consumer loan could be repaid through a regular monthly amount rather than a lump sum on the due date. It was restructured in 1981 under a holding company named Household International Inc., and in 1998 it acquired Beneficial Finance.[1][2] Household International was a provider of consumer loans and credit cards in the United States, Canada and the United Kingdom. In October 2002, Household International settled for $486 million charges of predatory lending by attorneys general in 46 U.S. states. On November 14th 2002 HSBC announced the acquisition of Household International Inc for a toal value of $15,294.06 million On 28 March 2003, HSBC acquired Household International, which was merged in 2005 with a subsidiary company that became the HSBC Finance Corp. Household International CEO William Aldinger became the highest-paid director in the United Kingdom before announcing his departure in February 2005. On March 2, 2009, HSBC chairman Stephen Green said that, in retrospect, HSBC should not have acquired Household International.[3] [edit] MetrisIn August 2005, HSBC-N.A. announced plans to acquire Metris Companies, Inc, a credit card issuer to the U.S. middle market segment. The deal closed in early December 2005 and is an all-cash transaction worth close to US$2 billion. HSBC will insert the Metris product line including the American DreamCard (under the Direct Merchants Bank brand) into the HSBC-NA credit card family of products. [edit] US Operations[edit] Beneficial and HFC   Operating under the HFC and Beneficial names, HSBC Finance Corporation is the second largest consumer finance company in the United States, with more than 900 branches in 46 states. It provides a variety of real estate secured and unsecured loans to primarily sub-prime customers, as well as increasing numbers of other product lines such as auto loans and service plan policies. On 2 March 2009, it was announced that HSBC would no longer accept new business from HFC/Beneficial, and would eliminate 6,100 jobs.[3] Children of former full-time Beneficial employees are considered for scholarships to four Maryland institutions of higher learning: Hood College, Johns Hopkins University, St. John’s College and Washington College.[4] [edit] Decision OneDecision One mortgage company directly originated real estate secured loans sourced through mortgage brokers. This subsidiary was shut down September 2007 due to the sub-prime mortgage meltdown. Approximately 1,500 employees were affected. [edit] HSBC Bank Nevada NAHSBC Bank Nevada issues a range of HSBC-branded credit cards, to both credit card only customers and customers of HSBC Bank USA. [edit] Private label cardsHSBC is the third-largest issuer of private label credit cards in the United States, including cards for more than 70 active merchant relationships, including Best Buy, Costco, Gottschalks, Menards, Neiman Marcus, Jordan's Furniture and Saks Fifth Avenue. [edit] Global consumer finance[edit] CanadaHSBC Finance Corporation has a Canadian operation which it inherited from Household International. Since the HSBC acquisition the Canadian subsidiary works increasingly closely with HSBC Bank Canada. The unit offers mortgages, personal loans and insurance through 75 branches in 10 provinces and via merchant relationship with stores such as Best Buy, Futureshop, The brick, Henrys, Bad Boy... It is still remaining after the closure of US and the UK closures [edit] United KingdomIn the United Kingdom, HFC Bank is a sub-prime consumer lender. Its branch network consists of around 150 Beneficial Finance branches. Since Household International's acquisition by HSBC, HFC Bank has worked increasingly closely with HSBC Bank plc particularly for cross-selling purposes. HFC also provides retail finance for stores such as John Lewis, Currys and PC World. The Marbles and Beneficial branded credit card portfolios were sold to SAV Credit Limited in October 2007.[5] In January 2008, the Financial Services Authority fined HFC £1,085,000 for failing to take reasonable care in its sale of Personal Protection Insurance. [6] Beneficial Finance is renowned for its predatory sales tactics. [edit] Other locationsThe techniques and experience of HSBC Finance Corporation are being increasingly exported to other HSBC markets, for example, the establishment of Proa by HSBC Bank Argentina, and new business being established in Poland by HSBC Bank Polska. [edit] Bibliography[edit] See also[edit] References
[edit] External links
| |||||||||||||||||||||||||||||||||||
| ↑ top of page ↑ | about thumbshots |
