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Many articles address HSBC’s reputation after they bought troubled U.S. predatory lender Household International. Household was examined by regulators when they evicted an 89 year old woman from her home.
Household International hurt Americans in a way that is neither forgotton nor forgiven. HSBC underestimated the impact on HSBC’s reputation as those hurt by Household International now focus on HSBC. Watch for breaking news in 2005 as the same Americans amplify news that HSBC wants to suppress. John Bond underestimated the tenacity of shoppers hurt when credit card payments were held and applied late, resulting in interest, late fees, and overlimit fees. People hurt by Household International are people who missed out on low interest rates, the housing boom, and a chance for betterment of family and future. Analysts say almost one third of Americans fit this classification.
Household International, now called HSBC Finance Corporation, is still subject to racketeering, influence and corrupt organization charges relative to tax preparer H&R Block.
HSBC Finance Corporation has embarrased John Bond and HSBC since HSBC bought the company. It was revealed that credit card payments were intentionally proecessed late for 10 years. Household neither admits nor denies the charges, but settled the suit for US$11 million.
“Reputation is the key element of the brand proposition and cannot be overstated” said HSBC Plc in 2003. But no matter how they try HSBC will not be able to put a nice gloss on Household – HSBC Finance Company. A sub-prime lender turns into a predator when they commit acts because they can get away with it. Not driven by market imperatives, but rather by greed and profits, the old Household International and the new HSBC Finance Corporation are a stain on America.
Consumer advocacy organization Household Watch, the website you are now on, protested the acquisition of Household International by HSBC. What HSBC failed to understand is the dedication which drives these people to dig up news that HSBC once suppressed. Sudan, regardless of human rights issues – all for profits. Sadaam Hussein and oil for food – all in the name of profits. Violations of United States Regulation Z – all in the name of profits. More examples abound.
HSBC Finance Corporation customer service representatives tell customers that sending them a bill is not a requirement but a courtesy – a false statement and a violation of the Fair Credit Billing Act. More examples abound.
The only way HSBC can save its reputation is to admit that Houshold International is a predatory corporation, terminate William Aldinger, and charge Aldinger with violations of his contract with HSBC which will enable HSBC to recoup past payments to Aldinger and negate future payments. Then HSBC must terminate ill trained customer service representatives at HSBC Finance Corporation, improve upon payment processing times, and offer a promise to consumers that the cancer has been cut from the patient. No other option will negate the bad publicity for HSBC.
HSBC’s reputation is at risk. If action isn’t taken Americans will never forgive HSBC, Household International and HSBC Finance Corporation. In fact HSBC Finance Corporation should perhaps disappear from the American landscape forever and nobody would ever miss them.
This article, HSBC Reputation, is just one of our articles from our Bank Horror Stories, HSBC Secrets Part 3
Bank Horror Stories 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.
