HSBC Finance

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
foundation = 1878
location = Mettawa, Illinois, United States
key_people = Douglas Flint, Chairman Brendan McDonagh, CEO
num_employees = 58,000 (including HSBC Bank USA, HSBC Bank Canada and CIBM)
industry = Finance and Insurance
products = Financial Services
homepage = []
revenue =

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 is 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.


HSBC acquired Household International on March 28, 2003. The acquisition was controversial: Household International had, in October 2002, settled for $486 million charges of predatory lending by attorneys general in 46 U.S. states. Household International CEO William Aldinger became 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.

US Operations

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 non-prime customers, as well as increasing numbers of other product lines such as auto loans and service plan policies.

Decision One

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 mortgage scandal. 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 label credit cards in the United States, including cards for more than 70 active merchant relationships, including Best Buy, Costco, Gottschalks, Neiman Marcus, Jordan's Furniture and 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 insurance through 109 branches in 10 provinces and via merchant relationship with stores such as Best Buy, Futureshop, The brick, Henrys, Bad Boy...

United Kingdom

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, Currys and PC World. The Marbles and Beneficial branded credit card portfolios were sold to SAV Credit Limited in October 2007. [HSBC SELLS NON-CORE UK CARD PORTFOLIOS] 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. [FSA fines HFC Bank £1.085 million for PPI failings] Beneficial Finance is renowned for its predatory sales tactics.

Other locations

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 Poland by HSBC Bank Polska.


* [ HSBC North America Holdings Inc. factsheet]

ee also

*HSBC Group
*HSBC Bank Canada
*HSBC Bank Argentina


External links

* [ HSBC USA website]
* [ Beneficial USA website]
* [ HFC USA website]
* [ Household - HSBC Watch consumer advocates]

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