HSBC Professional Studies Loan and other nightmares

duir · 18 January 2008 at 12:43PM

Hi

This is my first post so I hope I am in the right forum. I took out a HSBC professional studies loan unsecured for the best part of £50000 in 2003 to complete all the training required to complete the Airline Transport Pilots Licence. Having succsesfully completed the course in September 2005 I hit the job market only to find I was unable to secure an airline position. I approached HSBC straight away and was totally honist and open. They agreed to interest only repayments until I was able to find work. For the best part of the next 18 months I recieved a constant stream of calls and letters from HSBC threatenening legal action and charging my account for not paying the full repayments on the loan or being overdrawn. Each month they tried to collect the full amount from the account when there was not enough money in it. I was now living in the north of Scotland working as a flying instructor, earning a pittence and in serious financial trouble. Everytime a letter arrived or a phone call I then called my branch to sort it out. HSBC would not allow me to move the loan to a local branch in Aberdeen so I could never have face to face meetings. Finally I landed an airline job as a pilot on regional jets with a decent wgae. The wage allowed me to meet all the repaymants each month. I finally thought the nightmare was over. Then today I recieved a bill for being overdrawn at the HSBC as I had not realised my standing order takes 3 days to process. It goes out on the 31st of each month but the debt is due on the 2nd of each month and of course they didn't bother to tell me this when I set it up. I am utterly disgusted with the way HSBC have treated me and they have trebled the financial hardship and stress I have been under for the past 2 years. I am only now with the prospect of being in the £55000 a year wage bracket within the next 12 months seeing light at the end of the tunnel.

Sorry to go on!

My question is this, can I claim back all the charges that I have accrued with them over the past few years and how do I complain to them?

loveandlight · 19 January 2008 at 12:37AM

Wow, sorry I don't have an answer for you but I just wanted to say you did absolutely fantastic to get an unsecured loan for £50,000!!!!!

TEDDYRUKSPIN · 19 January 2008 at 1:31AM

I actually know alot of friends who have taking out professional loans and are just about paying it off.

Just to tell people who are reading this post, professional loans from HSBC as stated are all provided to the professional jobs such as doctors, pharmacy, lawyers etc.

I am quite astonished how you got this loan actually. But back to your advice.

Did you actually borrow £50,000 or this is the borrowing and the accrued interest?

For the terms and conditions, you were obliged to pay back the loan once you obtained a job. If you did not repay, the loan would automatically add the interest onto the loan and will increase each month. I think this is why you owe £50k.

As for the charges? What charges are these? Are these the penalties for the late payments that bounced on the standing order or direct debits? When was this? Recently? If they were before December 2006, you will not be able to obtain the charge back. No banks are accepting the letters for refunds now as a massive court case is now challenging these refunds. This will be ongoing. You can still send the letters for refunds of charges but no one will be receiving any refunds until dispute is corrected.

Now, it seems that the charge above mentioned might be a small mistake. Have you tried going to a different branch? Explaining the situation? I also suggest you to ask to set a different date for the direct debit.

Good luck on the job.

I have to say. £55k for a pilot job seems to be average. Ryanair roughly pay this. Good luck in getting the bigger job as you will be earning £100k when you get your flying time in.

gr3harrier · 8 June 2010 at 10:11PM

Hello Peeps,
Sadly I am reaching the point of no return. Yes I am going to be 30 this year. My long term ambition has been to be a pilot. I really dont have the finance to do this. I heard that the HSBC bank provided loans for mature studies. However, about 4 months ago, I spoke to the bank including my own bank about the matter. HSBC have apparently STOPPED doing this and my bank nearly laughed. Are there any companies out there or pilot academies that offer such loan?? Are there any more airlines that does the sponsorship schemes these days? Also turning 30 in few months, have I got any chance?? Any reply, advise, help or support would be highly appreciated.

Thank you.

Gr3harrier :-)

BadgerFace_2 · 8 June 2010 at 10:24PM

You have very little chance of gaining finance for this venture at the moment I'm affraid. Even if you did, you will STRUGGLE (trust me, that's best case scenario!) to find your first job, as I'm sure the OP will agree. Even if you do, it will probably be Easy or Ryan, who will use you as cheap labour for a year, then dump you.

You may find in about 3 - 5 years time, the market has picked up.

G'Luck

hur575 · 9 June 2010 at 8:01PM

I also took £15,000 Professional study loan from Barclays to fund my phd, although you only start paying 9 months after you graduate, the interests starts the day you take the loan unlike career development loan.

gr3harrier, are you sure you want that burden of debts in your shoulder while you study? I am not sure who does it now, I Know Barclays stopped this product.

tom.doha · 9 July 2010 at 12:03AM

Firstly and most importantly, congratulations Duir, and well deserved too. Good for you. I really do hope you got a big bottle of Moet to celebrate, and if you didn't - do it now! You've earned it.

The pro studies loan is really, very hard work. We've been through what you have described, and expect more of the same. However many smiles you get at the outset, a bank is a bank and money, not personal circumstance, is their thing. Getting someone to listen to you is almost impossible - but keep going, like you did and have done since your ATPL. The bottom line, I think, is do they think you're going to default; that tends to get some attention. If you have, or can present a reasonable solution to a problem that is both yours and theirs, someone, somewhere may eventually pay attention. I'd have a go at reclaiming the fees, especially if you have anything at all that supports your agreement of interest only repayments while you weren't working, or were instructing - even if it's only bank statements showing interest only payments.

To my friend who questioned the amount - no, £50k is not interest and charges; many of the people taking you on your hols or business trip have paid in excess of £100k to get the seat at the front. Sounds crazy? Probably is. HSBC were, a while ago, the only bank offering funding for this ridiculously expensive career choice.

Harrier - you make a choice. No banks, as far as I know, offer this loan on an individual basis anymore. Many people take security somewhere - small businesses, parents house(!) etc etc. But do have at look at Oxford (OAT) who run an Airline Preparation Programme (APP), with funding available if you make it through selection. Or FlyBe, who part-fund ab-initio cadets, and can, I am sure, help with finding the remainder of the costs. If you start looking at this seriously you will find 100 people to tell you otherwise, each with 100 reasons. But it's not them taking the risks, and it's not them with the dream. It's a rollercoaster ride; look at duirs post. Massive debt - clearly unimaginable to some people - and no job. Or someone paying you £12k to instruct - less than minimum wage, but you'll take it because it's flying. 18 months on though, Duir is looking at EDI, or GLA, or ABZ from 5000 feet as he makes his final preparations for approach - either cold and clear and beautiful, or windy and raining and sh**ty and he's going to earn his cash tonight. If you want it, you'll get there, but don't expect roses all the way.

I'm a long way from being expert, a lowly FO with 5yrs behind him. I'd be happy to talk to you guys tho, if there's anything you need or want to find out. If I can help: tominthemadhouse /a/t/ hotmail dot com

PS Don't bother with pprune. I kid you not. Really, don't.

teachertom_2 · 4 December 2010 at 7:00PM

Hi Everyone, I have one of these bloody loans for my veterinary study a couple of years ago, I borrowed 25K and I am due to start repayments in July 2011. I am stressing out over the repayments of £403pm over 9 years. I just dont know if I am going to be able to pay this amount back each month and be able to eat, live etc. I am a lecturer in 30k a year so its ok, however I also have to pay regular student loan back through my wages, live and work in London (expensive!!!). Does anyone have any advice for how I should tackle this, I have been doing my sums and trying to find a way round it, but currently I am going to fall short! The answer is to earn more money I know, and im looking. I am just panicking as my sums wont add up. Never take out a prof studies loan if your thinking about it, or you are earning good money already.

HELP!:eek:

HSBC Professional Studies Loan and other nightmares

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