The auto finance entities of HSBC Finance, a subsidiary of HSBC North America Holdings, have reached an agreement with Santander Consumer USA (SC USA) to sell HSBC US auto loan servicing operations as well as $1 billion in auto loan receivables for $904m in cash. They have also entered into a loan servicing agreement for the remainder of US auto loan portfolio, which is in liquidation.
Under the terms of the sale, HSBC’s auto loan servicing facilities in San Diego, California, Lewisville and Texas, will be assigned to SC USA and the majority of the 700 employees from those locations will be offered the opportunity to transfer to SC USA beginning in the first quarter of 2010. SC USA will provide servicing for the auto loans it purchases, as well as for the remaining HSBC auto loan portfolio.
Niall Booker, CEO of HSBC Finance, said: “This agreement is an important step in our continuing efforts to proactively reduce the HSBC Finance portfolio, and at the same time offer opportunities for our employees with a company that has demonstrated a longer term commitment to the auto finance business.”
