HSBC says HFC Bank will cease new lending and close 100 branches across the UK, making 450 people redundant. It will continue to operate cards for its major retail clients and will continue to serve its existing personal customers.
A spokesperson for HSBC says: “While 450 employees of HFC are at risk of being made redundant, all will have the ability to apply for jobs within HSBC and there are vacancies open at present. HFC currently employs more than 1,200 people.
“This action is not taken lightly but in response to an economic environment that has deteriorated severely in recent months. All affected employees will receive outplacement counselling and redundancy terms, if needed, significantly exceed the minimum legal requirements.”
Moneysupermarket.com head of debt and loans Tim Moss says this move will just reduce options for those with debt problems and push them closer to loan sharks.
He says: “Anyone who falls into the sub-prime category and is looking to apply for credit should weigh up the options carefully, and look to curb their spending instead of going further into the red if at all possible.”