Are HFC Desperate?

[121o121]

I have a loan account with HFC/Household/Beneficial (call them what you will). I have approximately 2 years left to run on it and have been up-to-date with payments for the last 18 months now.

 

Today, I received the third call in approximately 6 months from them. They say I'm a good customer and they want to offer me more credit and would like to invite me to my local branch so they can restructure my finances.

 

Have any other HFC customers been contacted lately?

 

Although they're not breaking any laws, I can't help but think that whilst lenders are being criticsed constanttly for offering to much credit to consumers, HFC are setting a bad example.

[FANTASY CHARGES]

I have a loan account with HFC/Household/Beneficial (call them what you will). I have approximately 2 years left to run on it and have been up-to-date with payments for the last 18 months now.

 

Today, I received the third call in approximately 6 months from them. They say I'm a good customer and they want to offer me more credit and would like to invite me to my local branch so they can restructure my finances.

 

Have any other HFC customers been contacted lately?

 

Although they're not breaking any laws, I can't help but think that whilst lenders are being criticsed constanttly for offering to much credit to consumers, HFC are setting a bad example.

 

err YES

 

 

that is because they haven't got the original "executed documents"

 

 

see this thread

 

 

http://www.consumeractiongroup.co.uk/forum/general-debt/65971-hsbc-say-they-dont.html

[FANTASY CHARGES]

Yes exactly - HFC will be trying to get people in to sign new agreements from april because of the repeal of section 178a --- because they don't have the originals for a lot of people....don't do it. Send off a CCA request now !

 

yes we have rumbled THEM

 

HFC History

 

HFC Bank was established in 1973 as the UK arm and wholly-owned subsidiary of Household International Inc, one of the largest independent consumer finance businesses in the United States.

In the UK, we have adapted and moulded ourselves over the last 30+ years to ensure we have remained at the forefront of consumer finance. Initiatives such as being the first high street lender to open on a Saturday and having children´s play areas in our branches have helped keep us ahead of the pack.

In 1998, HFC Bank merged with Beneficial Bank resulting in a new bank in terms of scale, size and opportunity. This merger was a significant milestone in our history - expanding our market presence and improving our growth potential.

In March 2003 both Household International Inc. and HFC Bank Ltd became part of the HSBC Group. Subsequently HFC Bank has become a limited company.

 

AND HFC HAVE BINNED ALL THE PAPERWORK !!!!

 

http://www.consumeractiongroup.co.uk/forum/post-603698.html

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AND HERE IS MORE PROOF THAT THEY ARE

 

http://www.consumeractiongroup.co.uk/forum/post-609375.html

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http://www.telegraph.co.uk/money/graphics/2007/02/09/cchsbc09.gif

 

 

HSBS HAS JUST CONFIRMED IT HAS WRITTEN OFF 1O.6 BILLION TODAY

 

Sub-prime loan market shaken up - Los Angeles Times

 

 

HSBC, which bought U.S. sub-prime lender Household International Inc. for $15.5 billion in 2003, said it would raise its provisions for bad loans by $10.5 billion, 20% more than analysts had expected. The action was taken mainly because adjustable sub-prime loans are driving delinquencies higher, Chief Executive Michael Geoghegan said in a conference call.

 

HSBC's New York-listed shares fell $2.44, or 2.6%, to $89.78. Washington Mutual Inc., Countrywide Financial Corp. and Wells Fargo & Co., all of which write sub-prime mortgages as well as conventional loans, saw their stocks slip by about 1% to 3%.

 

 

 

 

HSBC BUSINESS BANKING TERMS

 

 

http://www.hsbc.co.uk/1/PA_1_5_S5/content/uk/pdfs/en/new_business_banking_tc_10pt.pdf

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Duplication

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US bad debts may worsen, says HSBC

 

 

By Philip Aldrick, Banking Correspondent

 

Last Updated: 1:25pm GMT 05/03/2007

 

 

 

 

 

US bad debt comes home to haunt HSBC

US mortgage crisis goes into meltdown

Fund guru blasts HSBC's new head HSBC has indicated that its US problems could worsen after bad debts soared to $10.6bn (£5.5bn) last year due to mismanagement of its US mortgage portfolio.

HSBC has already taken drastic steps to clean up its US operation

 

Reporting a 5pc increase in full year pre-tax profits to $22.1bn despite the problems, HSBC executive chairman Stephen Green said: "Going forward, the level of future impairment allowances will be sensitive to economic conditions and, in particular, to the state of the housing market, the level of interest rates and the availability of financing options for sub-prime borrowers."

HSBC took a surprise extra $1.76bn bad debt charge in the US last month after risky sub-prime loans went bad following a 10pc housing market collapse.

The provision caused the bank to issue its first profit warning in 142 years. North America accounted for $6.8bn of the total impairment charge, up from $4.9bn, and profits in the US personal businesses tumbled by $725m, the results today showed.

Mr Green said: "We are restructuring this business to avoid any repetition of the risk that built up over the past two years." Senior US executives have been removed and a new management team parachuted into the affected business by head office.

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Mr Green described the bank's solid performance in spite its US troubles a "testament to HSBC's strength and diversity". In 2006, pre-tax profits from Asia, the Middle East, Latin America and other emerging markets approached 50pc of the total.

He added: "We intend the contribution from these markets to trend upwards over the next five years. These economies are growing faster than developed markets and, therefore, we will concentrate investment primarily in these markets in the form of both organic development and acquisition.

"In mature markets, we will focus particularly on serving customers with international financial needs, including the diaspora from emerging markets. Insurance and retirement services will be a growing part of our business."

In the UK, bad debt charges in retail banking as a percentage of lending remained broadly in line with last year. However, gross bad debt impairment for the European region, which is dominated by the UK, rose 12pc to £2.16bn after a rapid increase in provisions in the second half.

The UK corporation tax charge fell from $692m to $650m, or 12pc of the total $5.22bn tax paid by the bank.

Mr Green said the outlook was good. "Although growth expectations in the US are moderating, the economic outlook elsewhere remains encouraging as globalisation expands market access and emerging markets grow stronger, forcing competitive restructuring."

Net interest income was 10pc better at $34.5bn and the dividend was increased 11pc to 81c, although the costs as a proportion of income worsened from 51.2pc to 51.3pc.

The figures were marginally ahead of analysts' forecasts but Dresdner Kleinwort's James Eden said: "Don't expect today's results to have any transformational impact on sentiment. The issues remain the same, and the US sub-prime sector faces an uncertain outlook."

He expects North American bad debts to worsen 23pc by 2009. He added: "While [new accounting standards] make it harder to kitchen-sink, we believe HSBC went as far as possible to inflate the 2006 bad debt charge."

The shares rose 14 to 900p, in the face of a near 100 point fall in the FTSE 100, making up the ground lost in the days ahead of the results.

 

US bad debts may worsen, says HSBC | Business | Money | Telegraph

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Fixing US mortgages a long job for HSBC | Business | Money | Telegraph

Fixing US mortgages a long job for HSBC

By Philip Aldrick, Banking Correspondent

Last Updated: 2:19am GMT 06/03/2007

Comment: HSBC may not be shot of the poison bottle 'We will always offer a free account in the UK'

HSBC has admitted that it will take three years to fix its US mortgage business, which led to its first ever profits warning last month.

The banking giant added that further bad debt provisions are likely despite the $10.6bn (£5.5bn) it set aside in the full year results yesterday to cover non-performing loans in its US housing arm.

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HSBC has been hit by risky "second tier" lending in the sub-prime market, which leave it down the pecking order on claims. In many cases, all of the capital lent out has had to be written off due to a 10pc collapse in the US housing market.

Chief executive Mike Geoghegan stressed that "the team and I are fully focused on this matter". But he added: "We can't do it overnight. It will probably take two or three years to work this out."

Some $13.7bn of loans in the affected US mortgage services division, which is now being wound up, are forecast to default when they reach their first interest rate reset this year or next. The bank has so far written off just $2.17bn of loans in the division.

Mr Geoghegan warned: "We can't take provisions now for those loans that aren't delinquent and are showing no signs of impairment However, if people are unable to refinance, then further provisions will arise."

James Eden, an analyst at Dresdner Kleinwort, expects North American bad debts to increase 23pc by 2009. He added: "While [new accounting standards] make it harder to kitchen-sink, we believe HSBC went as far as possible to inflate the 2006 bad debt charge."

Others are concerned that the troubles spreading through the sub-prime market will soon spill over into prime mortgages and unsecured lending in the US.

In the US, new management has been introduced and the retail and investment banks are being "pulled together". The mortgage services business is being transferred to the investment bank where loans will be securitised and sold into the debt markets.

Stephen Green, the HSBC chairman, dismissed suggestions that he took his eye off the ball in failing to integrate the businesses when he was chief executive. He said: "There was no governance issue. We have always had a policy of not micro-managing the business. I don't think I was asleep on the job."

Mr Green's pay and bonus increased 16pc to £2.93m despite producing shareholder returns that significantly underperformed that of HSBC's peers.

Amicus, the union, said: "Staff will be sickened to hear that while their bosses are to receive another inflated pay package, they have to accept another below inflation pay rise."

Mr Geoghegan's pay increased from £671,000 to £2.87m after he was promoted.

Despite the US problems, HSBC produced record profits of $22.1bn for the year, a rise of 5pc. Almost half the profits came from Asia, the Middle East, Latin America and other emerging markets, where HSBC said it would focus investment.

HSBC said its future will be in "joining up the world" by providing cross border products. It already provides bank accounts to Poles living in the UK that can be set up overseas.

Net operating income was up 10pc to $54.8bn and the dividend was increased 11pc to 81c. A final dividend of 36c is payable on May 10. The shares rose 10p to close at 896p.

 

 

 

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HSBC - Review - The World's Worst Employer? (HFC Beneficial Finance)

[darling]

Does this apply to their Marbles card as well ???

[121o121]

Yes exactly - HFC will be trying to get people in to sign new agreements from april because of the repeal of section 178a --- because they don't have the originals for a lot of people....don't do it. Send off a CCA request now ! :grin:

 

Ok guys. I haven't even looked at the CCA request thread yet as its bigger than the bible (well, not quite). I acknowledge I own the debt as I have paid it for the last 2/3 years.

 

 

 

Are you trying to say if they can't supply the agreement I can get it written off?

[FANTASY CHARGES]

Does this apply to their Marbles card as well ???

 

WHAT YEAR WAS THE CArd issued ????

[FANTASY CHARGES]

Ok guys. I haven't even looked at the CCA request thread yet as its bigger than the bible (well, not quite). I acknowledge I own the debt as I have paid it for the last 2/3 years.

 

 

 

Are you trying to say if they can't supply the agreement I can get it written off?

 

 

on the balance of probabilities the answer could be a three letter word so get off your a*se and look !!!

[121o121]

Hi Fantasy, its loan, opened around 3 years ago.

 

Am looking into it, thanks.

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http://www.consumeractiongroup.co.uk/forum/barclays-bank/74225-new-century-owes-barclays.html#post643807

[121o121]

Not relevant in my case.

 

My loan is with HFC and has not been passed on. I know I own the debt so not much to go on.

[Dirty_Dog]

The truthful answer (and I use to work for HFC/Beneficial) is that as a company which doesn't advertise to new customers, most business is driven through (and this is the logical process);

 

You set up a retail account through Dixons for example,

HFC then calls you to say you're a good customer why don't you come in because we can look at consol/home improvements/new car etc...

 

You then come in and sign, you get taken off the list for 3 - 6months, then you come back on the list and we call you all the time to keep you in debt with us and that's how HFC makes it's money.

 

I say this as a stark warning to all - Stay away from HFC, never have i

[Dirty_Dog]

The truthful answer (and I use to work for HFC/Beneficial) is that as a company which doesn't advertise to new customers, most business is driven through (and this is the logical process);

 

You set up a retail account through Dixons for example,

HFC then calls you to say you're a good customer why don't you come in because we can look at consol/home improvements/new car etc...

 

You then come in and sign, you get taken off the list for 3 - 6months, then you come back on the list and we call you all the time to keep you in debt with us and that's how HFC makes it's money.

 

I say this as a stark warning to all - Stay away from HFC, never have i worked for such an inept company. Really shocking. Thankfully I no longer work for them.

[121o121]

Thanks Dirty Dog

 

I first dealt with them when I purchased a set of wheels from Halfords. After that I had one loan, then that was re-financed into another.

 

Not long to go till I'm rid of them.

[Dirty_Dog]

Trust me. They are deplorable

[121o121]

With regards to my Household Bank CCA request, should I send it to my local branch or the banks HQ?

 

Is there a closed thread some where with the basics of CCA requests (inc. templates)? I have seen numerous threads, but a majority of them are over 100 pages long because of thread hijacking & irrelevant posts.

 

When your trying to research into it, it makes it very difficult.

[FANTASY CHARGES]

With regards to my Household Bank CCA request, should I send it to my local branch or the banks HQ?

 

Is there a closed thread some where with the basics of CCA requests (inc. templates)? I have seen numerous threads, but a majority of them are over 100 pages long because of thread hijacking & irrelevant posts.

 

When your trying to research into it, it makes it very difficult.

 

CERTAINLY NOT THE LOCAL BRANCH NEVER

 

THEY WOULD NOT UNDERSTAND WHAT IS ABOUT

[121o121]

The branch addresses are the only contact information available on their website.

 

Anyone know of the Birmingham address I should send my CCA request to? Damned if I can find it anywhere.

[Dirty_Dog]

HFC Bank

120 Edmund Street

Birmingham

B3 2QZ