HSBC Finance

Encyclopedia : H : HS : HSB : HSBC Finance

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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, tax refund anticipation loans and specialty insurance products. Major brand names operated include the prime HSBC Mastercard, Union Plus and GM Card offerings, middle market Direct Merchants brand, and the sub-prime Orchard Bank and Household cards.

Household International joins the HSBC Group

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's 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. Metris is 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 (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 1,300 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 protection policies.

Decision One

Decision One Mortgage Company directly originates real estate secured loans that are sourced through mortgage brokers.

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. A major program is the HSBC Mastercard.

Private Label Cards

HSBC is the third-largest issuer of private label (merchant branded) credit cards in the United States, including cards for more than 70 active merchant relationships, including Best Buy, Costco, Neiman Marcus and Saks Fifth Avenue.

Global Consumer Finance

Canada

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 its 115 branches in 10 provinces as well as via its 80+ merchant relationships.

United Kingdom

In the United Kingdom, HFC Bank is a mid-market consumer lender and a major provider of consumer loans and credit cards. Its branch network consists of 195 Household Bank and Beneficial Finance branches, and it also operates under the Marbles brand. Since Household International's acquisition by HSBC, HFC Bank has worked increasingly closely with HSBC Bank plc, including refer up/refer down arrangements and HFC introducing customers to HSBC's insurance centre.

Other locations

The techniques and experience of HSBC Finance Corporation are being increasinly 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.

Bibliography

• [HSBC North America Holdings Inc. factsheet]

See also

• HSBC Group
• HSBC Bank USA
• HSBC Bank UK
• HSBC Bank Canada
• HSBC Bank Argentina
• Proa
• Marbles

External links

• [HSBC USA website]

 

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