HSBC Faces Scrutiny for Predatory Lending in Black Neighborhoods

HSBC's Household Finance subsidiary — acquired in 2003 — had already paid $484 million in 2002 to settle predatory lending claims. Internal documents showed systematic targeting of elderly Black homeowners in Baltimore, Cleveland, and Detroit with high-fee refinance products. Subsequent analysis found Black borrowers with prime credit scores were placed into subprime mortgages at two to three times the rate of white borrowers with equivalent credit profiles.