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HSBC Finance Corp. said yesterday it is selling its U.S. auto loan servicing operations, including a facility in San Diego, to Santander Consumer USA.
Illinois-based HSBC said the majority of the 700 employees at the unit’s facilities in San Diego and Lewisville, Texas, will be offered the chance to transfer to Santander.
The $904 million sale also includes $1 billion in auto loan receivables. HSBC will retain $6.7 billion in auto loan receivables, which Santander will service.
HSBC Finance’s auto finance business had $7.7 billion in managed receivables as of June 30.
Under the terms of the sale, HSBC’s auto loan servicing facilities in San Diego and Lewisville, Texas, will be assigned to Santander and the majority of the 700 employees from those locations will be offered the opportunity to transfer to Santander beginning in the first quarter of 2010.
Dallas-based Santander will provide servicing for the auto loans it purchases, as well as for the remaining HSBC auto loan portfolio.
The agreement is an important step in reducing its finance portfolio and offering its employees opportunities with a company demonstrating a longer term commitment to the auto finance business, said Niall Booker, HSBC Finance CEO.
This article, HSBC sells auto loan servicing business to Santander, is just one of our articles from The HSBC Monitor, Part 2 – News and Complaints Behind the Scenes
The HSBC Monitor monitors banking problems and customer complaints and has done so since 1999. Writers hold no stock positions. Some material is used under the fair use copyright act.
We use Thomson Reuters News Service Calais in all production material but are not associated with Thomson Reuters, banks, or financial institutions in any way.
