HSBC Beneficial/HFC Leaving U.S.?!

[Sky1968]

I just saw the news that HSBC is pulling out of the United States. I wonder what that will mean for us who still have our mortgages with them? Any thoughts, news or comments anybody?

[Moe Bedard]

That was the UK link..................here is the proper article...........



HSBC Finance Announces Closure of Consumer Lending Business



HFC and Beneficial branches to close; branch-based loan originations to cease.

2 March 2009

Mettawa, IL - HSBC Finance Corporation today announced the
discontinuation of loan originations of all products by its Consumer Lending business. HSBC will continue to service and collect the existing receivable portfolio as it runs off, while continuing efforts to reach out and assist mortgage customers with their loan repayments and home preservation. The Consumer Lending branch offices, branded in the US as HFC and Beneficial, will cease taking new loan applications as soon as practical and substantially all branch offices will be closed as soon as commitments to customers are satisfied.
HSBC remains committed to the US financial services market, including the remaining businesses in HSBC Finance, as well as its US banking operations under HSBC Bank.

Further details are provided in Form 10-K for the year ended December 31, 2008, as filed with the Securities and Exchange Commission (SEC) by HSBC Finance Corporation on March 2, 2009. The document is available by visiting EDGAR on the SEC Web site at U.S. Securities and Exchange Commission (Home Page).

About HSBC Finance Corporation
HSBC Finance Corporation is a subsidiary of HSBC North America Holdings Inc., one of the top ten financial organizations in the United States. HSBC Finance Corporation subsidiaries provide real estate secured loans, auto loans, credit cards and private label credit cards, personal non-credit credit cards loans, taxpayer financial services and specialty insurance products.

[Al_2009]

I have a 2nd with HSBC/HFC which I have no hope of paying off in my lifetime. I wonder if this will make them amenable to a principal reduction?

Any thoughts?

[czhorses]

I doubt it- and if they do they will just tack it on the end like when you get a hardship ruling from them.

We opened our bill in March to discover that they have made our payment 2.5x higher - claiming they have to have the loan paid off by Aug 2009- I may not be a rocket scientist, however even I can figure out that even the increased payment still leaves half the amount due unpaid at the end of Aug.

They will not work with us to refinance as they are closing all the offices around here and not offering consumer loans anymore! The people at our local office (whose jobs are gone at the end of March) have been very helpful - sending us copies of all the contracts, explaining it all and etc...