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  • FIRST POST
    • marktheman1962
    • By marktheman1962 21st Sep 16, 10:30 AM
    • 27Posts
    • 0Thanks
    marktheman1962
    HSBC Bank loan
    • #1
    • 21st Sep 16, 10:30 AM
    HSBC Bank loan 21st Sep 16 at 10:30 AM
    Hi - just taken out an HSBC loan for 15k to consolidate debt. During the application process I was asked to close the two credit cards after clearing them with the loan, Barclaycard (17k limit) and Bank of Scotland (16k limit).
    Question - Now I've cleared them, am I obliged to close them?
    Thank you
Page 3
    • marktheman1962
    • By marktheman1962 21st Sep 16, 4:59 PM
    • 27 Posts
    • 0 Thanks
    marktheman1962
    [QUOTENo the Banks don't but if they get found out they get fined, Will you accept a fine if you get found out? ][/QUOTE]

    Who's got the power to fine me?
    • Pixie5740
    • By Pixie5740 21st Sep 16, 6:24 PM
    • 8,402 Posts
    • 11,011 Thanks
    Pixie5740
    In what way am I stupid? Three times I advised you to read the T&C of your loan and lo and behold the answer was in the T&C. Seems like pretty good advice to me.

    Your OP asks if you are obliged to close the credit card accounts. The answer is that yes you are legally and morally bound to close the credit card accounts. However, what you really want to know is will you get caught and if you are caught what will happen. So the answer to those questions is that you might get caught but then again you might not, the loan might be called in, you might find the details of this application (consolidation loan on the condition of closing the credit card accounts) passed on to National Hunter making it more difficult to obtain credit or open accounts in the future like other people who fib.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • marktheman1962
    • By marktheman1962 21st Sep 16, 9:28 PM
    • 27 Posts
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    marktheman1962
    In what way am I stupid? Three times I advised you to read the T&C of your loan and lo and behold the answer was in the T&C. Seems like pretty good advice to me.
    I wasn't inferring you were stupid when I said, "I guess that makes me stupid, what's your excuse?"

    I meant your excuse for the manner in which you write - it is a little aggressive. You ruffled my feathers by shouting and being sarcastic, "READ YOUR CONTRACT" and "So the answer was in the loan T&C all along. Who'd have thought it?"

    It seems to me to be the Sergeant Major approach to financial advice.

    It was a simple question and with hindsight I should have put it like this, "Am I in breach of contract by failing to close my credit cards................................". I wasn't after any moral judgement. You were 100% correct to refer me to the Tand Cs of the loan - for that I thank you.
    • Malcnascar
    • By Malcnascar 22nd Sep 16, 6:02 PM
    • 1,018 Posts
    • 1,123 Thanks
    Malcnascar
    Who's got the power to fine me?
    You when you have run out of Bank's to do business with. What then for you?
    • marktheman1962
    • By marktheman1962 23rd Sep 16, 12:20 PM
    • 27 Posts
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    marktheman1962
    All for not closing a couple of credit card accounts - the feedback on this site is on the whole pretty good but as for the scaremongering I think I'll pass on that.
    • cooltt
    • By cooltt 24th Sep 16, 9:04 PM
    • 434 Posts
    • 206 Thanks
    cooltt
    All for not closing a couple of credit card accounts - the feedback on this site is on the whole pretty good but as for the scaremongering I think I'll pass on that.
    Originally posted by marktheman1962
    Quite amusing reading this thread with all the armchair lawyers and all.

    I did exactly the same as you mate, only cc I closed was HSBC one, left the other 3 open but cleared the balances with HSBC loan. They said I had to close them but I didn't and they didn't say anything. Nobody smashing my door down, no black marks on my credit file, no dirty looks of HSBC. As long as you pay their loan back they don't care who else you owe money too. The old "oh we really don't want you to struggle routine" is a load of codswallop to satisfy government banking regs.
    • marktheman1962
    • By marktheman1962 25th Sep 16, 4:33 PM
    • 27 Posts
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    marktheman1962
    The funny thing is I only wanted a quick answer to one question. Glad to find a kindred spirit.
    • bris
    • By bris 25th Sep 16, 5:59 PM
    • 6,016 Posts
    • 4,918 Thanks
    bris
    If it's in the T&C's and you don't follow them then you could be charged with obtaining funds illegally. Loan fraud is almost definitely illegal. Whether this case would merit this is for the CPS to decide but the possibility is there as you wouldn't have got the loan if you didn't agree to this.


    You can get a dozen answers to this but the trouble would only begin if you run up thos credit cards again then go bankrupt with the loan to, this would be looked into.
    • Vikipollard
    • By Vikipollard 25th Sep 16, 6:33 PM
    • 600 Posts
    • 1,045 Thanks
    Vikipollard
    Brilliant well done and thank you. Now we are getting somewhere. This is where it is:

    What are our rights if you miss a repayment or
    we have other concerns?
    10. There may be severe consequences if:
    (a) you do not make repayments on time; or
    (b) we find that any information you provided as part
    of your loan application was materially incorrect or
    misleading
    ; or

    So I could get "severe consequences" - does that mean a tanning from the branch manager?

    Not quite sure what they mean. The worst case scenario would be calling in the loan, well that's no problem I can get the money on zero interest with the Barclaycard I'm not closing as they do money transfers.
    Originally posted by marktheman1962
    Late to the party, but can't see any other replies about this... If you can get the money on zero interest, why on earth have you got a loan running at 3.3%?
    LBM July 2006
    Debt Sept 06 £19,972
    Debt free 01 Sept 12 ..

    Finally joined Slimming World: weight loss 33lbs...target achieved 51wks later 06.05.13
    • BrassicWoman
    • By BrassicWoman 25th Sep 16, 10:27 PM
    • 954 Posts
    • 4,059 Thanks
    BrassicWoman
    to be absolutely sure, why don't you ask the bank giving you the loan? then there can be no question.
    May GC £215/£50 (oops)
    April 2016 GC: £24.09/ £20
    • redpete
    • By redpete 25th Sep 16, 10:50 PM
    • 3,995 Posts
    • 3,495 Thanks
    redpete
    One person says no obligation without explaining why, others say obligation as described in the Ts&Cs yet you accept the first because it's the answer you wanted to hear - why bother asking?
    loose does not rhyme with choose but lose does and is the word you meant to write.
    • marktheman1962
    • By marktheman1962 26th Sep 16, 2:00 PM
    • 27 Posts
    • 0 Thanks
    marktheman1962
    Late to the party, but can't see any other replies about this... If you can get the money on zero interest, why on earth have you got a loan running at 3.3%?
    Two reasons. The 18 month 0% is ending soon and I want fixed monthly payments to clear the whole debt in 5 years. Those like me who are not disciplined and repay the minimum to the credit card company each month can take 30 -40 years to clear the debt.
    Also, to renew the 0% comes with a fee which I think is 2.9% so these deals aren't as good as they once were. Anyway, I've done the sums and the 15k loan will pay off quicker and the interest will be lower than the cost of maintaining the loan on the two cards.
    Last edited by marktheman1962; 26-09-2016 at 3:59 PM.
    • marktheman1962
    • By marktheman1962 26th Sep 16, 2:09 PM
    • 27 Posts
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    marktheman1962
    One person says no obligation without explaining why, others say obligation as described in the Ts&Cs yet you accept the first because it's the answer you wanted to hear - why bother asking?
    If you read back you'll see that I have deduced from this thread that I'm in breach of contract. It is the scaremongering that I have no time for, there are no qualified answers, mere opinion and I think it is my prerogative to take opinion the way I wish.
    Last edited by marktheman1962; 26-09-2016 at 5:35 PM.
    • marktheman1962
    • By marktheman1962 26th Sep 16, 2:20 PM
    • 27 Posts
    • 0 Thanks
    marktheman1962
    If it's in the T&C's and you don't follow them then you could be charged with obtaining funds illegally. Loan fraud is almost definitely illegal. Whether this case would merit this is for the CPS to decide but the possibility is there as you wouldn't have got the loan if you didn't agree to this.


    You can get a dozen answers to this but the trouble would only begin if you run up thos credit cards again then go bankrupt with the loan to, this would be looked into.
    From this thread I can see that I am in breach of contract. However, whether this civil offence could be escalated to the criminal offence of fraud is interesting. As you say and I agree, nothing will happen provided I do not miss a payment (not the opinion of many on this thread). I have no intention of using the cleared cards the balances will remain at zero throughout the life of the HSBC loan so I think fraud would be impossible to prove.
    Last edited by marktheman1962; 26-09-2016 at 5:33 PM.
    • marktheman1962
    • By marktheman1962 26th Sep 16, 2:26 PM
    • 27 Posts
    • 0 Thanks
    marktheman1962
    to be absolutely sure, why don't you ask the bank giving you the loan? then there can be no question.
    When the thread is over I will make a decision.
    • tommytank
    • By tommytank 30th Sep 16, 10:45 AM
    • 1 Posts
    • 0 Thanks
    tommytank
    Holy cow with knobs on - if you are in for it by the bank mate have a thought for me - I took a loan to clear 25k on my cards with halifax and then got tempted when I saw this boat for sale - bought the boat - cards aren't paid off - anyways I'm still making the payments and no-one's come knocking yet.
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