HBOS Scales Down its Intelligent Finance and TMB Operations
15/08/2008
HBOS has today announced that its subsidiary Intelligent Finance is to stop selling credit cards, current accounts and personal loans.
The financial firm claims the scale-down is part of a general restructuring of the organisation. Intelligent Finance will now offer offset mortgage products only.
The firm has promised that current credit card, loan and account holders will not be immediately affected by the move. The move will however, see 400 people lose their jobs.
Intelligent Finance is not the only operation to be scaled down by owner HBOS. The Mortgage Business (TMB) will also cease to trade under the corporate shake-up. This unit had suffered heavy losses, as it specialised in buy-to-let and self-certification mortgages, which have all but disappeared from the market in the wake of the credit crunch.
Customers of The Mortgage Business customers will now have their mortgages transferred to Birmingham Midshires, which is also owned by HBOS.
Trade unions are angry about the move. Graham Goddard, from Unite, told The Times newspaper: "This is a further blow for jobs in the UK financial services sector being brought about by the credit crunch and changing economic climate. Our priority is to do our best to ensure these losses are dealt with through voluntary redundancy."
The financial firm claims the scale-down is part of a general restructuring of the organisation. Intelligent Finance will now offer offset mortgage products only.
The firm has promised that current credit card, loan and account holders will not be immediately affected by the move. The move will however, see 400 people lose their jobs.
Intelligent Finance is not the only operation to be scaled down by owner HBOS. The Mortgage Business (TMB) will also cease to trade under the corporate shake-up. This unit had suffered heavy losses, as it specialised in buy-to-let and self-certification mortgages, which have all but disappeared from the market in the wake of the credit crunch.
Customers of The Mortgage Business customers will now have their mortgages transferred to Birmingham Midshires, which is also owned by HBOS.
Trade unions are angry about the move. Graham Goddard, from Unite, told The Times newspaper: "This is a further blow for jobs in the UK financial services sector being brought about by the credit crunch and changing economic climate. Our priority is to do our best to ensure these losses are dealt with through voluntary redundancy."
