HSBC plans to close Household Financial, Beneficial consumer lo...

Six years after Prospect Heights-based Household International was acquired for $14 billion, its British owners Monday said the deal, in hindsight, was a mistake and the unit will be closed. Full Story
former Manny Hanny guy

Saint Louis, MO

#21 Mar 19, 2009
In my opinion - The working poor, lower middle class, consumers who do not manage their credit or finances well, etc. will always be with us. Consumer finance companies filled a void for a long time because they had the intelligence and guts to do so and they played a relatively small but profitable part in rounding out the world of finance. The industry (HFC, AGF, BENNY, Norwest, CIT, CreditThrift, MANNY HANNY) began to go down the crapper in the late 80's to early 90's when the pressure was on to ramp up production. Most old timers knew that there is a finite number of finance company customers with whom you can arrange a good loan (good for them AND good for the company) with a return that rewards the risk you are taking. When a crop of young turks began to take over at the corporate level who were about MORE = GOOD and began to close down any branch with a million or less in loans on its books no matter what the net return. I can still remember in southern IL a list of "TINY 20" from the home office at AGF that would either grow or close even when some of those branches were well run by veterans who lived in the communities where they worked and made a net return to the company of 10%. It may take a few years but in my opinion, as these old has been race horses are now sent to the proverbial glue factory, new companies will emerge to take their place.
livin in the real world

Cape Coral, FL

#22 Mar 19, 2009
I have a loan with HFC and they have been good to me, I want to pay what I borrowed. But I lost my job and have no money coming in. HFC is not the only loan I have. Like many americans we are in trouble and it is not because we drove the financial market into the ground. How about putting the blame where it belongs the CEO'S and the greed they have. Let me ask everyone why did the government give out billions to idiots that already have all the money they need. Wouldnt it make more sence to give every american over 18 that is working some money to help them get out of dept and make sure they keep working. It sure would cost alot less money. If there was an easy answer to the crisis we are in it would already be in place. I am 54 and been working since I was 14. I have never had bad credit as a matter of fact that is the last thing I am worried about at this point. I have 4 kids 2 that still live with me and dont know if I will have my house in a couple months. With all that said have a nice day
Digger

Lethbridge, Canada

#23 Mar 19, 2009
I don't work there, never have. It just pisses me off when these high and might people who are better than normal everyday folks make comments like Phil. A lot of these poor people will be left out in the cold with no where to turn now.
cat

Lancaster, OH

#24 Mar 20, 2009
Me too!!!! This company is bad news!!
Stupid

Cleveland, OH

#25 Mar 22, 2009
Digger wrote:
You may think it was a rip off, but I bet that they gave you a loan when your bank wouldn't. So consider yourself lucky that you got the loan in the first place. The rate may have been high. If your credit was good enough to get a loan at the bank then why didn't you? I'm assuming that you don't have perfect credit. If that is the case then you get the interest rate that you deserve.
Digger - You have a opinion that is like one of your body parts. Why don't you stick your head in it.
Unless you can step in some one elses shoes keep your ignorance to your self.
Stupid

Cleveland, OH

#26 Mar 22, 2009
Digger wrote:
Obviously Phil has never been in a position where he needed money and could not get it. He is much too good for the rest of us. Sometimes you don't have a choice and need to borrow. HFC Bene were there. Yes the rates were high, but when the customer is considered high risk, then you have to charge the rate to protect the company. Unfortunately, there are a lot of people out there that don't have very strong credit. You may call it predatory(this is the correct spelling you moron), but I call it helping. Otherwise those poor people could have to go without. We would always do our best to council them on improving there credit and many times clients would end up going to a bank and paying us out after we helped them rebuild there credit. So get off your high horse you asshole.
Now I understand! A Company man speaks. FYI Its not predatory its called legalized Loan Sharking. Stick it to the ones who can afford it the least. I am here to pay my bills, but life happpens and the loan sharks could care less.
Stupid

Cleveland, OH

#27 Mar 22, 2009
former Manny Hanny guy wrote:
In my opinion - The working poor, lower middle class, consumers who do not manage their credit or finances well, etc. will always be with us. Consumer finance companies filled a void for a long time because they had the intelligence and guts to do so and they played a relatively small but profitable part in rounding out the world of finance. The industry (HFC, AGF, BENNY, Norwest, CIT, CreditThrift, MANNY HANNY) began to go down the crapper in the late 80's to early 90's when the pressure was on to ramp up production. Most old timers knew that there is a finite number of finance company customers with whom you can arrange a good loan (good for them AND good for the company) with a return that rewards the risk you are taking. When a crop of young turks began to take over at the corporate level who were about MORE = GOOD and began to close down any branch with a million or less in loans on its books no matter what the net return. I can still remember in southern IL a list of "TINY 20" from the home office at AGF that would either grow or close even when some of those branches were well run by veterans who lived in the communities where they worked and made a net return to the company of 10%. It may take a few years but in my opinion, as these old has been race horses are now sent to the proverbial glue factory, new companies will emerge to take their place.
Good insight in an aging problem.
Now if we could only listen to the voice of experience.
Unless a personal relationship can be established and a flexible true to life payment plan these large loan sharks will continue to screw things up.
Confused

Burlington, NC

#28 Mar 24, 2009
Excuse me? Who held the gun to the consumer's head to make them sign the papers? Have you ever heard of reading what you are signing? I have never had a loan that when making my payments on time I owed more the the agreement stated. How about consumer responsibility?
ZZZ

Oceanside, CA

#29 Mar 25, 2009
I’ll save the subprime lending debate for another forum. It is what it is.
It’s sad to see the average hard working person lose their job. Even before the current economic meltdown the company was being run into the ground mainly by corporate greed sanctioned by executives and other top level management with their seven, eight and nine digit annual compensation packages. And don’t forget the golden parachutes. Will they suffer? NO!
Household International, a hundred year old American company, although a subprime lender, at one time had a fairly decent reputation until the more recent years when greed and questionable lending practices took over and was the order of the day. Shortly before Household was purchased by HSBC, a foreign company, Household was to pay a fine of approximately 500 million dollars as the result of a lawsuit settlement brought on by attorney generals from various states.
As a former Household and HSBC employee we were being told how wonderful the HSBC takeover would be for the company which I thought was a joke, unless “company” refers to top management. One of the first things HSBC did was to transfer jobs from American soil to cheaper labor markets in other countries. The bulk of these jobs went to India, Malaysia and the Philippines.
Yes, I do understand lower labor cost equals greater profit, but there should be some corporate responsibility even if not mandated by law. Who are the HSBC Finance Corporation customers? Hard working U.S. citizens, regardless of credit rating. HFC lending was not an international product, for example Hewlett Packard products. Customers are what allow a business to exist.
Good luck to the average HFC employee. For executive management,----‘em. That is my personal opinion. Go ahead and light the fire.
Robert R Cannon

Bakersfield, CA

#30 Mar 27, 2009
I sent my payment in to the H.F.C. branch I have been making payments to only to have it returned undeliverable! What is up I got a letter with the address for remital only to have the same thing happen. This better not effect my credit rating in anyway shape or form. I always paid on time and will where do the payment go?

Since: Sep 08

Wooster, OH

#31 Mar 27, 2009
Robert R Cannon wrote:
I sent my payment in to the H.F.C. branch I have been making payments to only to have it returned undeliverable! What is up I got a letter with the address for remital only to have the same thing happen. This better not effect my credit rating in anyway shape or form. I always paid on time and will where do the payment go?
All branches are closed. I'm sure you have to send it to HSBC headquarters and I'm sure you got a letter in the mail telling you to do so.
Worst Place to Work

San Antonio, TX

#32 Apr 8, 2009
Beneficial was my first job out of college and an insult to someone who had a business degree from a recognized university. Not only was I, as an employee treated like garbage, but customers were as well. The tactics my boss used to sell insurace were disgusting. She would sit the customers down in a closing room for literally one hour trying to sell them insurance they didn't even need, nor could they pay for in their monthly payments. Not only that, we would waste customer's time when they didn't even QUALIFY for a loan. The customers would get their hopes up, be nagged for paystubs, etc, and then get turned down. This place made you want to go home and forget about where you worked as soon as possible.

Since: Sep 08

Johnstown, OH

#33 Apr 9, 2009
Worst Place to Work wrote:
Beneficial was my first job out of college and an insult to someone who had a business degree from a recognized university. Not only was I, as an employee treated like garbage, but customers were as well. The tactics my boss used to sell insurace were disgusting. She would sit the customers down in a closing room for literally one hour trying to sell them insurance they didn't even need, nor could they pay for in their monthly payments. Not only that, we would waste customer's time when they didn't even QUALIFY for a loan. The customers would get their hopes up, be nagged for paystubs, etc, and then get turned down. This place made you want to go home and forget about where you worked as soon as possible.
I second that!
GMT

Epsom, NH

#34 May 15, 2009
JIM wrote:
GOOD!!! I THINK THIS COMPANY IS A RIP OFF TO IS CUSTOMERS. IF YOU HAVE A LOAN WITH THEM YOU WOULD UNDERSTAND!!!!!!
Really?? I am a former employee I was laid off Thanksgiving 2007. I loved working there, and they are great with thier customers. If you though they were a rip off why did you sign the papers?
Happy

Las Vegas, NV

#35 Jun 21, 2009
Beneficial/HFC takes advantage of people that are down and out. They're loan sharks. Good riddens.

Since: Sep 08

Sunbury, OH

#36 Jun 22, 2009
Happy wrote:
Beneficial/HFC takes advantage of people that are down and out. They're loan sharks. Good riddens.
Nobody held a gun to their heads and made them sign for the loan.
Losing our home

Robbins, NC

#37 Jun 25, 2009
We had a loan through HFBC, a mortgage loan for 70,000 two year fixed, thereafter to be adjustable. We knew that before the two years was up we would be refinancing to try to keep our fixed rate (at that time it was 11%). We made all of our payments on time paying extra so that by the time we were considering refinancing all we owed was about 63,000. Who should come along to refinance but Beneficial, promising to keep our payments below 800 and lower our interest rate. Not only was he going to do that but he told us that he could guarantee us a new mortgage for 95,000 so that we could consolidate our truck payments (both always on time and paid extra) and take care of some other bills, a guarantee of a loan amount even before the house was appraised. I felt sure that when they sent out the appraiser he would look at the house and tell us we would not qualify for 95,000 (our house was a fixer-upper we purchased and have not had the money to do the extensive work we needed and wanted to do). The appraiser walked in the front room, kitchen, and around the outside of the house, took a few pictures and told us he was appraising for the 95, needless to say that we were both shocked beyond words, because we both know that it is not worth 95, but the appraiser said so. Next are called in for the signing (just so we are clear, my husband talked to this guy once to twice a week and each time asked him if we were going to keep our payments below 800 a month and lower our interest rate, a guarantee he made every time) we get in to sign the paper work and get to the page about the interest rate and payment to find out they have raised our interest rate to 13% and our payment to over 1100 a month (not counting the escrow for insurance and taxes that they would not provide). We were floored, I remember that when we got to that page I had to leave the room for a minute I was so upset, but we were told we had to finish signing so we did. So what is happening now we have a payment that we cannot afford on a house that needs major repairs now that we cannot afford to fix, and we could rent cheaper than what we pay for mortgage. Not to mention that we have tried to get hardship assistance and been turned down once and never responded to the second time. As far as I am concerned good riddance to the company, since I, my husband, and my four kids our losing our dream home, before we even get to realize our dream. And just for clarification to some of the naysayers yes we did not have perfect credit we had average credit, not the best but our score was over 500.

Since: Sep 08

Centerburg, OH

#38 Jun 25, 2009
Losing our home wrote:
We had a loan through HFBC, a mortgage loan for 70,000 two year fixed, thereafter to be adjustable. We knew that before the two years was up we would be refinancing to try to keep our fixed rate (at that time it was 11%). We made all of our payments on time paying extra so that by the time we were considering refinancing all we owed was about 63,000. Who should come along to refinance but Beneficial, promising to keep our payments below 800 and lower our interest rate. Not only was he going to do that but he told us that he could guarantee us a new mortgage for 95,000 so that we could consolidate our truck payments (both always on time and paid extra) and take care of some other bills, a guarantee of a loan amount even before the house was appraised. I felt sure that when they sent out the appraiser he would look at the house and tell us we would not qualify for 95,000 (our house was a fixer-upper we purchased and have not had the money to do the extensive work we needed and wanted to do). The appraiser walked in the front room, kitchen, and around the outside of the house, took a few pictures and told us he was appraising for the 95, needless to say that we were both shocked beyond words, because we both know that it is not worth 95, but the appraiser said so. Next are called in for the signing (just so we are clear, my husband talked to this guy once to twice a week and each time asked him if we were going to keep our payments below 800 a month and lower our interest rate, a guarantee he made every time) we get in to sign the paper work and get to the page about the interest rate and payment to find out they have raised our interest rate to 13% and our payment to over 1100 a month (not counting the escrow for insurance and taxes that they would not provide). We were floored, I remember that when we got to that page I had to leave the room for a minute I was so upset, but we were told we had to finish signing so we did. So what is happening now we have a payment that we cannot afford on a house that needs major repairs now that we cannot afford to fix, and we could rent cheaper than what we pay for mortgage. Not to mention that we have tried to get hardship assistance and been turned down once and never responded to the second time. As far as I am concerned good riddance to the company, since I, my husband, and my four kids our losing our dream home, before we even get to realize our dream. And just for clarification to some of the naysayers yes we did not have perfect credit we had average credit, not the best but our score was over 500.
I am by no means defending Beneficial or HSBC bank but you had a 3 day recision period to cancel this loan. Payments and interest rate went up but the loan had to meet what Beneficial calls "Net Tangible Benefits". NTB's are lowering the customers rate, monthly payments, lowering the term and I can't remember the others. If there aren't 2 benefits to the customer then the loan couldn't be processed. If it didn't meet the criteria then underwriting would not approve this loan.
Confused

Burlington, NC

#39 Aug 7, 2009
Erie Native wrote:
<quoted text>
Nobody held a gun to their heads and made them sign for the loan.
Good "RIDDENS" ??????????
Dave

Franklin, TN

#40 Aug 28, 2009
I am glad they are gone as they are a bunch of rip off artists. I had a loan that I had to get through them during tough times and knew what I was getting into.(at least thought that I knew) I paid as agreed and when I got on my feet I paid considerably more than required.$325 payments and I paid $2,000-$3,000 a month until I had it down to $1200. I paid the $1200 and they charged me more intrest. I paid the intrest the same day and of course they left a .01 intrest on my account. I called them thinking that they would write a freaking penny off and they had the guts to tell me that I owed $27 on that freaking penny!

Long story short, I have 3 credit cards issues by HSBC with over a $10,000 credit limit with a zero balance on all and cancelled them all. I will never use HSBC or Beneficial ever again.

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