Capital One Financial Corporation has made a strategic move by acquiring the U.S. credit card division of HSBC, based in London. This deal includes over $30 billion in credit card loans and various store-branded cards, all for a $2.6 billion premium.
In addition to this, Capital One has expanded its reach by taking over the online banking operations of ING Group from the Netherlands. With the economy taking a downturn and the value of the dollar decreasing, many banks are merging, raising concerns among customers whose banks are being sold.
So, what happens to HSBC’s customers? For now, nothing changes. If you have an HSBC card, you can keep using it without worrying about extra costs or service changes. This acquisition allows Capital One to grow its U.S. credit card business, and the transition should be smooth. The deal is expected to be completed in the second quarter of 2012.
Both Capital One and HSBC are experienced in handling such integrations, aiming to minimize any disruption for customers. There are no immediate plans to change the credit card programs, so you can continue using your HSBC cards as usual.
HSBC will still operate in the U.S., maintaining over 260 bank branches nationwide. Once the buyout is finalized and the transition starts, you probably won’t notice any changes. As a credit card holder, you won’t need to do anything during the transition.
If you are affected by the sale, you’ll get more information as things progress. There’s no need to reapply for your current HSBC credit cards until further details are provided.
Your reward and point-based credit cards will continue to accumulate points, and your rewards are safe. The existing terms and conditions, as well as the rewards system, will remain until the sale is finalized. However, keep in mind that these conditions might change after the acquisition, potentially affecting interest rates, fees, and other policies.
Continue to make your payments with HSBC until you are informed otherwise. Keep an eye on your monthly statements and stay updated through HSBC’s website. If your credit card company has been bought out, continue using your card and making payments as usual. Stay informed and stay smart during these transitions.