Canada
HSBC Finance Corporation has a Canadian operation which it inherited from Household International. Since the HSBC acquisition the Canadian subsidiary works more closely with HSBC Bank Canada. The unit offers mortgages, personal loans and insurance through 75 branches in 10 provinces and via merchant relationship with stores such as The Brick, Henry's, and Arctic Cat. HSBC Finance Canada ceased operations on March 21, 2012. 75 branches were closed immediately and approximately 500 staff members were laid off.
United Kingdom
In the United Kingdom, HFC Bank is a sub-prime consumer lender. Its branch network originally consisted of around 125 Beneficial Finance branches. Since Household International's acquisition by HSBC, HFC Bank has worked increasingly closely with HSBC Bank plc particularly for cross-selling purposes.
HFC also provides retail finance for stores such as John Lewis, Currys & PC World. In October 2007, the Marbles & Beneficial branded credit card portfolios were sold to SAV Credit.[18] In January 2008, the Financial Services Authority fined HFC £1,085,000, for failing to take reasonable care in its sale of Payment Protection Insurance.[19]
In June 2009, HSBC announced that 100 branches would be closed, including all six in Scotland, with all branches closing the following month.[20] The remaining branches would be closed to new business, and eventually close altogether.[21] The company website is now offline, it previously stated; our branches have been closed since July 2009.[22]
United States
Beneficial and HFC
Operating under the HFC and Beneficial names, HSBC Finance Corporation was the second largest consumer finance company in the United States, with more than 900 branches in 46 states. It provided a variety of real estate secured and unsecured loans to primarily sub-prime customers, as well as increasing numbers of other product lines such as auto loans and service plan policies. On 2 March 2009, it was announced that HSBC would no longer accept new business from HFC/Beneficial, and would eliminate 6,100 jobs.[6] The company website now states that the Beneficial and HFC companies and HSBC Credit Centers have closed their consumer finance businesses in the United States, the website is no longer active, and that all loans have been sold with servicing transferred to third-party servicers.
Children of former full-time Beneficial employees are considered for scholarships to four Maryland institutions of higher learning: Hood College, Johns Hopkins University, St. John's College and Washington College.[23]
Beneficial and HFC
Operating under the HFC and Beneficial names, HSBC Finance Corporation was the second largest consumer finance company in the United States, with more than 900 branches in 46 states. It provided a variety of real estate secured and unsecured loans to primarily sub-prime customers, as well as increasing numbers of other product lines such as auto loans and service plan policies. On 2 March 2009, it was announced that HSBC would no longer accept new business from HFC/Beneficial, and would eliminate 6,100 jobs.[6] The company website now states that the Beneficial and HFC companies and HSBC Credit Centers have closed their consumer finance businesses in the United States, the website is no longer active, and that all loans have been sold with servicing transferred to third-party servicers.
Children of former full-time Beneficial employees are considered for scholarships to four Maryland institutions of higher learning: Hood College, Johns Hopkins University, St. John's College and Washington College.[23]
Decision One
Decision One mortgage company directly originated real estate secured loans sourced through mortgage brokers. This subsidiary was shut down September 2007 due to the sub-prime mortgage meltdown. Approximately 1,500 employees were affected.
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.
Private label cards
HSBC was the third-largest issuer of private label credit cards in the United States, including cards for more than 70 active merchant relationships, including Best Buy, GM, Yamaha, Kawasaki, Neiman Marcus, Polaris and Saks Fifth Avenue. Most of its card portfolio was sold to Capital One in 2011.[24]
Other
The techniques and experience of HSBC Finance Corporation are being increasingly 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.
