- HSBC Finance
:"HFC Bank" redirects here; for the bank in Ghana see
Home Finance Company"Infobox_Company
company_name = HSBC Finance Corporation
company_type = Subsidiary of
HSBC Holdings plc
company_slogan = The world's local bank
Mettawa, Illinois, United States
Douglas Flint, Chairman Brendan McDonagh, CEO
num_employees = 58,000 (including
HSBC Bank USA, HSBC Bank Canadaand CIBM)
Finance and Insurance
homepage = [http://www.hsbcusa.com/ www.hsbcusa.com]
HSBC Finance Corporation is a financial services company and a member of the HSBC Group. It is the sixth-largest issuer of
MasterCardand 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 is expanding its consumer finance model via the HSBC Group to Brazil, India, Argentinaand 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.
HSBCacquired Household Internationalon March 28, 2003. The acquisition was controversial: Household International had, in October 2002, settled for $486 million charges of predatory lendingby attorneys general in 46 U.S. states. Household International CEO William Aldingerbecame the highest-paid director in the United Kingdom, before announcing his departure in February 2005. After its integration with the HSBC Group Household International was merged with a subsidiary company and renamed HSBC Finance Corporation.
In 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.
Beneficial and HFC
Operating under the HFC and Beneficial names, HSBC Finance Corporation is the second largest
consumer financecompany in the United States, with more than 900 branches in 46 states. It provides a variety of real estatesecured and unsecured loans to primarily non-primecustomers, as well as increasing numbers of other product lines such as auto loans and service planpolicies.
Decision 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 mortgagescandal. Approximately 1,500 employees were affected.
HSBC Bank Nevada NA
HSBC Bank Nevada issues a range of HSBC-branded credit cards, to both credit card only customers and customers of
HSBC Bank USA.
Private label cards
HSBC is the third-largest issuer of
private labelcredit cards in the United States, including cards for more than 70 active merchant relationships, including Best Buy, Costco, Gottschalks, Neiman Marcus, Jordan's Furnitureand Saks Fifth Avenue.
Global consumer finance
HSBC 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 insurancethrough 109 branches in 10 provinces and via merchant relationship with stores such as Best Buy, Futureshop, The brick, Henrys, Bad Boy...
In 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, Currysand PC World. The Marbles and Beneficial branded credit card portfolios were sold to SAV Credit Limitedin October 2007. [HSBC SELLS NON-CORE UK CARD PORTFOLIOS http://www.hsbc.com/1/PA_1_1_S5/content/assets/investor_relations/sea/2007/sea_071030_uk_non_core_card.pdf] In January 2008, the Financial Services Authorityfined HFC £1,085,000 for failing to take reasonable care in its sale of Personal Protection Insurance. [FSA fines HFC Bank £1.085 million for PPI failings http://www.fsa.gov.uk/pages/Library/Communication/PR/2008/004.shtml] Beneficial Finance is renowned for its predatory sales tactics.
The 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 Polandby HSBC Bank Polska.
* [http://www.hsbcusa.com/ourcompany/pdf/hsbc_na_holdings_inc_fact_sheet_en_us.pdf HSBC North America Holdings Inc. factsheet]
* [http://www.hsbcusa.com HSBC USA website]
* [http://www.beneficial.com Beneficial USA website]
* [http://www.hfc.com HFC USA website]
* [http://householdwatch.com Household - HSBC Watch consumer advocates]
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