Two months after upsetting ING Direct customers by agreeing to buy the online bank for $9 billion, the Capital One vikings/barbarians have announced a deal to purchase HSBC’s credit card division for $2.6 billion.
Thing is, some people may not be fully aware that the credit card they have in their wallet is currently an HSBC card. Reports the Wall Street Journal:
The deal includes about $30 billion of credit-card loans; prime and subprime, and so-called “private label” credit cards that banks issue in the name of others, including retailers. Once the deal closes, Capital One would issue credit cards for General Motors Co., the AFL-CIO, Saks Inc., Neiman Marcus Inc., and Best Buy Co., among others.
The deal is expected to close next year, so HSBC credit card customers have several months to determine whether or not they want to find another card or make the transition to Cap One.
HSBC sells U.S card unit to Capital One [Reuters]