The following evolved into a dedicated page. Read “The HSBC Killzone” to see how this evolved.
A question often asked by those harmed and hurt by HSBC is how they determine who to hurt financially. Early in the investigation one could not determine if people were targeted by their credit scores. Common sense suggests those with lower credit scores and less disposable income were less likely to sue HSBC. Those with high credit scores and more disposable income were most likely to fight back. HSBC leveled the playing field with onerous binding arbitration, thus nobody is likely to sue. Still some fight back, although HSBC makes it very difficult.
If you have a merchant credit card such as a Best Buy card, or any HSBC credit card, you may find yourself at risk. The question is ‘Who Does HSBC Hurt Financially’. Worded another way people want to know how HSBC picks their targets. Which family gets a lower credit score after dealing with HSBC? Which people with HSBC credit cards head for financial ruin? The answer is that HSBC, through HSBC Finance Corporation, targets people by opportunity, not by their credit score. Trend analysis shows a ‘slaughter window’ which is defined as anything within one week of a balance due. Just like killing cows at the slaughter house HSBC Finance sends customers to the slaughter window by sending letters indicating when their interest free period is about to end. The shady part of these notifications is they DO NOT get to the customer until it is too late.
Keep in mind as we continue that HSBC Finance was once stained, sullied, embarrassed and bottom dwelling predatory lender Household International. Now the answers come into focus. In the past HSBC would quote a payoff, add $15 for a phone payment, take the payoff and the following month they would bill the customer for $15 plus all the interest due – a questionable and shady tactic at best. The customer did not know to add $15 more to the quoted payoff. Welcome to HSBC’s slaughter window. Today HSBC adds the $15 as a new purchase, further clouding the problem. Like leading customers to slaughter a combination of notices that arrive late and additional charges puts one at a disadvantage. Then consider the fine print of the HSBC Finance Corporation contract and there is little one can do.
A true definition of predatory lending is the lender adds fees, charges, unwarranted interest, etc., not because market imperatives drive the situation but because they found a way to get away with it. People once thought predatory lending targeted those with spotty credit. As you can see from our findings predatory lending by HSBC fits the definition, targets anyone with credit, and is based on opportunity. Do not give HSBC the opportunity to put you in the slaughter window. HSBC Bank USA, HSBC Finance, HSBC plc and their holding companies are truly still predatory lenders. For more see this actual customer report.
Additional: HSBC debtors, HSBC Collections, Binding arbitration, HSBC collateralized property, bankruptcy exemption, HSBC debtor, late fees