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Reclaiming bank charges - can a bank demand loan re-payment?
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Jenna
Posts: 460 Forumite
Hey,
After I'd been dating my boyfriend for a few months (we've now been together about 3 and a half yrs and are living together), I found out he was really struggling financially. At the time I had a few grand stashed away in an account (rainy-day savings) and decided to lend it to him.
He paid off the highest interest things using this money (notably an MBNA credit card at 20+%!!) and this brought the immediate crisis under control. Since then he's carefully budgeted to pay back his other debts ... including paying back some of what he owes me.
A lot of what caused the crisis in the first place was bank / credit card charges spiralling out of control. I've been reading the article on re-claiming charges and he's asked if I can look into this for him ... I've said yes as long as if he gets the money back, he will pay me some back too!
Anyway ... the biggest single debt at the minute is an HSBC personal loan (it's a managed account) which is over 4k ... they've charged him loads for various diff things. He wants to try and claim this back, as the majority of the loan is now made up of charges. I'm concerned that they could close his acc and demand immediate re-payment of the loan ... is this possible?
His credit rating is much better (lots of accounts have been settled and he hasn't defaulted on payments in over a year) but it's still not brilliant and I don't know if he could get a loan to cover the 4k. I'm also concerned that I might end up having to take out a loan myself to cover it or a portion of it ... I don't want to lend him any more money if truth be told, it just puts pressure on the relationship.
Any advice would be really welcome!
Cheers
After I'd been dating my boyfriend for a few months (we've now been together about 3 and a half yrs and are living together), I found out he was really struggling financially. At the time I had a few grand stashed away in an account (rainy-day savings) and decided to lend it to him.
He paid off the highest interest things using this money (notably an MBNA credit card at 20+%!!) and this brought the immediate crisis under control. Since then he's carefully budgeted to pay back his other debts ... including paying back some of what he owes me.
A lot of what caused the crisis in the first place was bank / credit card charges spiralling out of control. I've been reading the article on re-claiming charges and he's asked if I can look into this for him ... I've said yes as long as if he gets the money back, he will pay me some back too!
Anyway ... the biggest single debt at the minute is an HSBC personal loan (it's a managed account) which is over 4k ... they've charged him loads for various diff things. He wants to try and claim this back, as the majority of the loan is now made up of charges. I'm concerned that they could close his acc and demand immediate re-payment of the loan ... is this possible?
His credit rating is much better (lots of accounts have been settled and he hasn't defaulted on payments in over a year) but it's still not brilliant and I don't know if he could get a loan to cover the 4k. I'm also concerned that I might end up having to take out a loan myself to cover it or a portion of it ... I don't want to lend him any more money if truth be told, it just puts pressure on the relationship.
Any advice would be really welcome!
Cheers
Target debt - Loan left over from previous relationship - c. £3700
“Courage is found in unlikely places” — J.R.R. Tolkien
“Courage is found in unlikely places” — J.R.R. Tolkien
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Comments
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If the loan is covered by a contract/credit agreement and he isn't in default of its conditions then no they can't call in the loan. If they did they would be the ones breaching the conditions of the loan.Hamsters have no tact and diplomacy, nor do they want any.0
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Firstly, get a credit report – there are link on here to get it online for free
Secondly, chase all the other companies for their charges, even if he does not have the account anymore, he can still get the charges back for the past 6 years. That’s where the credit report comes in handy as it will list all the accounts he had and there account numbers etc and even indicate who is best to chase (ie number of late payments registered against each account)
Thirdly, once you’ve got a bit of money come in, go for the HSBC loan. If he is right then he could claim back all the charges and interest charged against these charges (little harder to calculate but not impossible with a spreadsheet) plus the 8% statutory interest from the payment dates (harder to calculate accurately in these type of cases but again not impossible).Got It & Spent It :dance:IKEA CARD = £120 charges = £175 received (146%)MARBLES = £450 charges = £370 received (82%)I.F. = £494 charges = £494 received (100%)CAPITAL ONE = £981 charges = £1,489.03 (152%)BARCLAYCARD = £580 charges = £786.12 (136%)On Hold :mad:A+L = £722 charges (target = 147%)BARCLAYS = £1,405 charges (target = 128%)BARCLAYS = £175 charges (target = 140%)ABBEY = £3,220 charges (target = 148%)0 -
Kurt ... thanks, I'll ask him to get a copy of the T&C's so I can check, I don't think he's breaking any of them though! The only thing I'm worried about is that it's already a managed loan (as he defaulted on it in the past) - does this change anything do you know?
Loz ... I have his Equifax one here, I'll go through that and try for some of the smaller amounts first - good suggestion! Martin's article has been updated so it now has a calculator for interest on charges, I'm not brilliant at Maths so I think I'll just use that ... 8% though?! That seems like a lot!! (would be good though heh)
He doesn't have back copies of his past 6 year's statements so I'm starting by registering him for online banking to see if we can get the information that way. I'd rather not pay out a tenner for it if I don't have to!
On a side note (it is related) ... Lloyds TSB are threatening to take him to court over about £100 in bank charges for going over his overdraft and things. He paid back the money he owed them and then some more, but they kept adding on more charges. He also wants to claim back this money, plus any money they charged in the past. I have no idea what advice to give him! Any ideas?
*is muchly grateful* Target debt - Loan left over from previous relationship - c. £3700
“Courage is found in unlikely places” — J.R.R. Tolkien0
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