Capital One Financial Corporation, in a strategic move, has acquired the U.S. credit card division of London-based HSBC. The purchase, prevalent among financial institutions today, includes over $30 billion in credit card loans and other store-branded cards for a $2.6 billion premium.
Capital One has also broadened its portfolio by taking over the online banking operations of the Netherlands-based ING Group. The wave of bank mergers has arisen due to economic downturn and the diminishing value of the dollar, stirring concern among clients whose banks are on the selling side.
But what does this mean for HSBC’s clientele? In the interim, there will be no changes. HSBC card users can continue their regular transactions without fretting over additional costs or service adjustments. This deal affords Capital One the opportunity to expand its U.S. credit card business and the transition is expected to be seamless. The completion of the acquisition is slated for the second quarter of 2012.
Both Capital One and HSBC leverage their experience in integration to minimize customer disruption and modifications in banking operations. With no immediate restructuring of the credit card programs on the agenda, HSBC credit card users can rest easy. Your HSBC cards will maintain their current status, so you can keep using them as usual.
HSBC will continue to operate in the United States, maintaining more than 260 bank branches countrywide. Once the buyout is finalized and the transition commences, customers might not even detect any changes. Moreover, credit card holders need not undertake any action during the switchover.
If you are an account holder affected by the sale, you will receive more information as the transition progresses. No need to fret over reapplying for any HSBC credit cards held currently until further details are announced.
Reward and point-based credit cards will continue accumulating benefits, and your well-deserved rewards are safe. Current terms and conditions, as well as the rewards system, will persist until the sale is finalized. However, remember that these conditions might change once the acquisition is complete, which could affect interest rates, fees, and other policies.
Please continue your payment transactions with HSBC until otherwise notified. Monitor your monthly statements closely and stay updated with HSBC’s website. Lastly, if your credit card company has also been bought out, remember to treat your card and monthly payments as before. Now more than ever, stay informed and stay smart.
