HSBC discontinued sales of credit card add-on products in 2012, and sold its card and retail services business in 2012. HSBC Bank Nevada ceased to exist in 2013.
As part of the agreement, HSBC Finance Corporation will pay a civil money penalty of $35 million to the OCC.
Refunds of product fees and related charges will be made to affected customers, both existing and former, in line with a refund plan currently being developed by HSBC.
The total amount of customer refunds will be determined by the refund plan, and will be funded primarily by HSBC Finance Corporation, with the balance funded by HSBC Bank USA.
Costs associated with the civil money penalty and customer refunds are not expected to cause HSBC Finance Corporation to take any additional charges to income beyond those recorded in prior years.
