Press Release

The grants are part of Household’s nationwide initiative to assist consumers in developing their budgeting, saving and credit management skills, and learning more about homeownership.

In addition to the Phoenix area, Household in 2004 has awarded over $1 million in financial education grants to 10 organizations in Tucson, Seattle and Columbus, Ohio. Since 2002, Household has distributed more than $3 million in financial education grants to 36 local organizations in 11 U.S. markets.

The need for consumer financial education has never been greater. Last year, Arizona bankruptcies rose 11.3 percent, a faster pace relative to the national rate, which climbed to 7.4 percent, according to the American Bankruptcy Institute. In the six-county Phoenix district, the number of consumers filing for Chapter 7 federal bankruptcy protection grew 9.8 percent in 2003 compared to 8.4 percent statewide.

Household has awarded 2004 financial education grants to three local organizations:

• International Rescue Committee received $108,000 to provide Phoenix and Tucson immigrants with financial education and homeownership assistance, as well as matched savings incentives.

• Neighborhood Housing Services of Southwestern Maricopa County will use its $100,000 grant to provide financial education and homeownership assistance to low-income Hispanic families. Financial incentives can be used for debt reduction or toward the purchase of a home.

• Consumer Credit Counseling Services, Mesa, received $50,000 to support the organization’s free credit report and debt-counseling services as well as train volunteers to teach financial education programs involving more than 18,000 participants.

"We want to empower Phoenix-area residents to set financial goals for themselves – and give them the educational tools to reach those goals. That is good for our entire region," said Aurora Gonzales, executive director of Neighborhood Housing Services of Southwestern Maricopa County. "These new funds from Household will enable us and the other grant recipients to deliver the right assistance to those who otherwise might not have access."

"We have a longstanding commitment to consumer financial education – it is critical that families understand how they can control their financial future," said Loretta Abrams, national director of consumer affairs at Household. "Working through these dedicated community organizations ensures that we reach as many Phoenix-area residents as possible to help them with ongoing financial education."

Household’s financial education program is a $13 million, multi-year investment by the company to educate consumers about how to build a brighter financial future for themselves and their families. Partnering with national organizations and local community groups, Household arms consumers with the tools and knowledge necessary to make informed financial decisions.

For more information about the grant program, contact Household’s community relations department at communityrelations@household.com.

About Household International, Inc.

Household International’s businesses are leading providers of consumer loans, credit cards, auto finance and credit insurance products in the United States, United Kingdom and Canada. Household is a member of HSBC Holdings plc (NYSE: HBC), one of the largest banking and financial services organizations in the world. Household companies operate under the two oldest and most recognized names in consumer finance - HFC and Beneficial. Additionally, Household's businesses are some of the nation's largest issuers of private label and general-purpose credit cards, including The GM Card® and the AFL-CIO's Union Plus® card. For more information, visit www.household.com.

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For more information, contact:

Mark Friedlander
HSBC North America Holdings
(847) 564-6137
mrfriedlander@household.com