GMAC said its closing Nuvell Credit Co., its Jacksonville-based subprime lending subsidiary, following its decision to stop funding loans for customers with bad credit. Nuvell stopped writing new business Jan. 7 in preparation for the closure, which will affect 348 employees in Florida, Arkansas and Texas. A GMAC,spokesman told trade magazine Automotive News that 136 employees will take jobs at GMAC and the other 212 will be laid off.
Operations will cease March 7. GM is also busy behind the scenes at GM Card. It looks like GM is running off the business. Lower credit limits and high interest rates will certainly offend many customers. HSBC runs the GM Card backend operations, and a search of Household – HSBC Watch shows the latest trends. One HSBC insider claims HSBC and GM don’t need good customers, while HSBC stands to make more money from less reputable credit cards.