Comment on HSBC plans to close a number of Beneficial branches

Published:

04/06/2009

Topic:

Press Release,Debt

Commenting on reports that HSBC plans to close many high street branches of its sub-prime division Beneficial Finance, which offered loans to sub-prime and near-prime borrowers, Tim Moss, head of debt and loans at moneysupermarket.com, said:

"Often called the underserved, there are fewer and fewer places for sub-prime and near-prime borrowers to turn, with Provident Financial now the only provider willing to lend to these groups. According to reports, there will be some branches left after the cull, but these branches will not write any new business effectively closing the door to new borrowers.

"My biggest fear is that sub-prime borrowers may be forced to borrow from 'loan sharks', or turn to pay day loans if all other traditional sources of credit dry up. 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."

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