Household Bank is a major provider of credit cards and retail services accounts in the United States.
Household Bank, which is also often referred to as Household Finance, is the credit financing arm of HSBC bank, a British bank. Household Bank was founded in 1865 and provided community-friendly, local credit financing to those with less-than-perfect credit. The company was purchased by HSBC bank in the early 2000s in an attempt by the British bank to both increase its exposure in the U.S. and dip its toes into the business of subprime lending.
Retail Services Accounts
One of the major financing components of Household Bank is its retail services department. This component of the company controls the credit accounts that are originated to purchase retail items like high-end vacuums, appliances and home building materials. These accounts often are subcontracted through retailers such as Best Buy and Saks, and often payments are made to the store, not directly to Household Bank. However, for servicing on these accounts, customers need to call the Household Bank customer service department (see Resources).
Credit Cards
Another major component of Household Bank's portfolio is its credit card division. These accounts may be connected with retail services accounts (see above). However, most Household Bank credit cards are multiuse accounts that consumers use as normal purchasing accounts. These accounts are serviced directly by HSBC customer service, and if you are experiencing problems on these accounts, you'll need to speak with HSBC directly.
Consumer Lending
Household Bank's biggest business, by far, is its consumer lending division. While the individual branches and agencies around the country are now defunct---following the credit crisis of 2008, these subprime lending branches were shut down---the accounts that were created are still being serviced by Household Bank. However, instead of visiting branch offices for service, customers now need to contact customer service.
Misconceptions
The name "Household Bank" is somewhat misleading. In no way does Household Bank provide the services that a traditional bank would. Instead, Household Bank is strictly a financing arm of a larger banking institution. So, it's impossible to take out a checking or savings account with Household Bank; however, the company will gladly issue you a credit account.
Warning
Household Bank came under legislative and legal scrutiny after a record-breaking settlement deal in 2002 over charges of predatory lending. The case---which settled in 2002 for over $484 million---was one of the largest class-action suits in America. As a result, many customers who'd been wronged by ruthless sales pitches and unfair loans were given reparations. At the same time, the company developed a reputation for being a sleazy and unfair business---a reputation that continues to haunt the company today.
