Meet Jen from the Problem Solvers TeamHi, I'm Jen and I'm here to help. Submit your complaint here or get help here
No matter what name you put on it – predatory lender Household International or HSBC (they are the same company) K-Mart has aligned their customers with the troubled credit card operation in an attempt to build “K-Mart customer loyalty.” Is K-Mart headed into bankruptcy again after this move? Time will tell.
November 8, 2004
TROY, Mich. — Kmart Holding Corp. on Monday announced the launch of the Kmart Rewards credit card as part of an effort by the discount retailer to bolster customer loyalty.
“The Kmart Rewards credit card is an important tool in our efforts to retain and better serve our existing customers,” Paul Guyardo, chief marketing officer for Troy-based Kmart, said in a statement.
The card, which has no annual fee, offers $10 off the first card purchase of $50 or more and a $10 reward for every $250 in account purchases thereafter. Customers also will be offered 90-day, same-as-cash financing on any purchase over $100 during the 2004 holiday season.
The credit-card program is being managed by HSBC-North America’s retail services business, which already issues merchant branded credit cards for retailers including Best Buy, Levitz Furniture and Saks Fifth Avenue.
Is there an underlying tone here for Household’s merchants? Saks posts a loss, Best Buy is sued in at least two states, H&R Block now has RICO charges, Sears wants to sell their credit card business, Bose gets bad publicity, Pergament is bankrupt, K-Mart (bankrupt) is now in the mix….what else will we see?
In Shea v Household HSBC, from 1994 through 2004 payments were credited late, giving K-Mart’s “loyalty card” processor additional late fees, overlimit fees, and interest on “interest free” promotions to which they were not entitled. Loyal to who? is the question.
K-Mart gets a portion of all fees.
Advocacy organization Household Watch has this complaint on file:
“Balance owed erroneously showing on credit report. Between KMART and HRS, I am at my wits end. This is the only flaw on my credit and I want it removed because I owe nothing.
KMART representatives have you calling several different numbers, including one that is disconnected, trying to reach HRS. HRS is an automated nightmare that had me hanging on the phone for 40 minutes, long distance mind you, and of which I never got to speak with anyone about this error.
This is in reference to a matter that was cleared up promptly over a year ago after having had the same problem … hunting down anyone who could help. My credit is now being adversley affected by KMART/ HRS lousy customer service.”
HRS is Household Retail Services which is now called HSBC Retail Services. Numerous violations of Regulation Z, Fair Credit Billing and Fair Credit Reporting plague HSBC’s retail services. Their chief executive is William F. Aldinger III.
This article, Notice To K-Mart Customers – Who’s Behind That Card, 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.
One Comment
I’m trying to determine the maximum interest rate HSBC-Retail Services should be able to charge a customer. My rate has increased to 26% although my payments are timely and above the minimum payment. A series of unfortunate events caused me to rely on credit and HSBC seems to want me to stay in debt.