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Capital One nabs HSBC cards

By Janna Herron ·
Thursday, August 11, 2011
Posted: 4 pm ET

What's in your wallet?

Some HSBC credit card holders in the U.S. may find a Capital One credit card in theirs next year.

On Wednesday, HSBC, Europe's biggest bank, said the "viking" company is buying its U.S. credit card business for $2.6 billion.

HSBC's approximately $30 billion credit card portfolio includes its MasterCard, Visa, private label and other credit card operations. The private labels include co-branded partnerships with General Motors, AFL-CIO as well as retail cards with Saks Fifth Avenue, Neiman Marcus and Best Buy, according to Capital One's investor presentation.

HSBC Bank USA's $1.1 billion credit card program is not included.

For customers affected by the sale, don't fret just yet. The deal is not expected to close until the second quarter of next year, so it's business as usual for HSBC and its credit card holders.

The companies said they don't expect any immediate changes to HSBC's credit card program and operations. Customers also won't experience any change in service in the near term and should continue to use their cards as they always have.

HSBC cardholders should address any questions or concerns about their accounts to HSBC like normal.

Julie Rakes, a spokeswoman for Capital One, did not elaborate on whether there will be changes to credit cards once the sale is completed or if credit cardholders will receive new cards.

"We are very excited to work with our new retail and co-branded partners, as well as the HSBC associates who are joining Capital One," Rakes wrote in an email. "Together, we look forward to providing exceptional value and service to our new customers."

If you're an HSBC cardholder and are worried about how this change could affect your credit report, check out this column from Bankrate's Credit Card Adviser, Leslie McFadden.

Are you an HSBC credit cardholder? How do you feel about the deal?

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Tena North
August 29, 2011 at 8:52 pm

Yeah, someone got a Best Buy card with my name on it! I just got the bill and can't get a hold of Best Buy of course! HSBC is who is behind Best Buy!!

Tara Snow
August 19, 2011 at 4:52 pm

HSBC is the go to search bank for me, I use it for all of my finances but I keep coming across stories of people who have had really bad experiences with the company. There are some really funny vents about it here.

Michael Sussman
August 11, 2011 at 11:55 pm

Thank God! HSBC is the worst. They offer you a card with low interest rates then they reduce your credit a year later sending your credit score down the gutter. They actually have lower standards for issuing a card than they do for you keeping it. Capital One at least will be consistent if you pay on time.