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Article: HSBC Finance sells auto loan business to Santander
- Article from:
- AP Online
- Article date:
- November 10, 2009
CopyrightCopyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. (Hide copyright information)
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HSBC Finance Corp. said Tuesday it will sell its auto loan servicing business and $1 billion in car loan receivables for $904 million.
A cash deal has been reached with Santander Consumer USA Inc. It is expected to close in the first quarter of 2010.
HSBC said it also plans to enter into a loan servicing agreement for the remainder of its U.S. auto loan portfolio, which is in liquidation.
HSBC Finance's auto finance business had $7.7 billion in managed receivables as of June 30.
Under the terms of the sale, HSBC's auto loan servicing facilities in San Diego and Lewisville, Texas, will be assigned to Santander and the majority of the 700 employees from those ...