HSBC - "Total Charge for Credit"? Er....help!

Adam_4966

Hi all,

When I was young and foolish (ok, last year!) I put a rather large purchase on my credit card. At the time it helped me out (my car blew up and needed fixing) but obviously it wasn't the smartest thing to do.

Anyway, after reading through the articles on this fantastic website, I decided it would be best to do a balance transfer. My existing card is through Alliance and Leicester which ruled out the MBNA option so I applied to HSBC for a 0% 13 month card all for the princely sum of a 2.5% fee. "Great!" I thought - applied and get a letter through the post yesterday asking me to sign the agreement and send it back and I'd have a nice shiny card. I should point out that as soon as I get the card, I'm fully intending to cut it up, give it to someone I can trust or burn it - either way, it's not going in the wallet!

I suppose I'd best get to the point - now you'll have to bear with me because I'm not au fait with how these things work but the agreement states (in small lettering), "Total Charge for Credit - £303.82".

My question is, what's this? My balance that I'm transferring is around about £2,500 and my shaky maths is telling me that 2.5% of £2,500 is nowhere near 300 quid.

Am I missing something obvious? It's probably a stupid question but all the papers that came with the letter don't seem to suggest what this total charge for credit is?

Can anyone help me out? Please?

Thanks,

Adam

YorkshireBoy

It's just an example based on a set of assumptions about your use of the card, and they're required by law to give it you so you can compare cards on a like-for-like basis.

Worry not!

daveboy

Adam_4966 wrote: »

When I was young and foolish (ok, last year!).....

....this year too.

All you needed to do was read the agreement properly. :rolleyes:

Adam_4966

Phew!

Thank God for that! Thanks Yorkshireboy! Agreement now in the post.

And Dave - I did read the agreement - three times but there was no hint as to what this was and that it was an example. The fact the amount was such a specific figure made me wonder if it was specific to me. Even after Yorkshireboy's comments I re-read it and it still doesn't explain it. But I am dreadfully sorry - I'm fully willing to accept that because I'm young and foolish (and have no idea about these things) it might be staring me in the face.

Thanks again for your help guys,

Adam

KiKi

Adam - you're not being foolish or stupid, and it's probably not staring you in the face. The Total Charge For Credit is not obvious on many agreements, and you're right, they are so specific that they do end up causing confusion. Don't apologise to anyone on here for asking a question.

As YorkshireBoy said, it's a legally required fact that goes on your statement, and basically it means (these figures are just examples!): "if you were to spend £250 on this card, and just pay the minimum repayment every month, over the period of a year, this would cost you..." It's a way of comparing cards, but in reality, it often confuses the hell out of those people who do actually read the agreement!

Some credit card customer service lines even have this as an option when you call up, because they get so many calls asking about it. "Press 1 if you are enquiring about the Total Charge for Credit."

HTH
KiKi

Adam_4966

Hi Kiki!

Thanks! I know I'm not on the ball on these things but I was beginning to think I was going crazy!

I'm just eager to get my life (financially) on track and pay off this debt! Am I ok cutting this card up when I get it or will I need to keep it for some reason?

Thanks again!

Adam

daveboy

So how can total charge for credit = £303.82 when he hasn't even signed an agreement and he hasn't done anything to initiate a balance transfer.

Fairly self explanatory to me. Common sense must be lacking today.

Adam_4966

Common sense is indeed lacking today Dave but I'm not sure it's mine. The agreement is printed with all my details on but more to the point, I have initiated a balance transfer with them - prior to this agreement, they wanted to know how much I was transferring, from whom and which card number I was doing it from.

Obviously, given they were in receipt of this information before sending the agreement out, I don't think it's altogether unreasonable to assume that the £303.82 was relevant to me in some way.

You can reply to call into question my mental agility if it will make you feel any better but the agreement is in the post and my question has been answered.

Thanks again,

Adam

morgano66

Adam_4966 wrote: »

Common sense is indeed lacking today Dave but I'm not sure it's mine. The agreement is printed with all my details on but more to the point, I have initiated a balance transfer with them - prior to this agreement, they wanted to know how much I was transferring, from whom and which card number I was doing it from.

Obviously, given they were in receipt of this information before sending the agreement out, I don't think it's altogether unreasonable to assume that the £303.82 was relevant to me in some way.

You can reply to call into question my mental agility if it will make you feel any better but the agreement is in the post and my question has been answered.

Thanks again,

Adam

Just came across this thread and it answered the exact same question I had - so cheers Adam & ignore the other a**hole, who's obviously wayyyyyyyyyyy too clever to use these boards as he knows everything already

armyoftwo

Hi guys,

Sorry to Hijack the post, but I need to do some research for a friend, so would appreciate any advice.

My friend is wanting to take out a CC with HSBC and wondering if she should make the move.


Could anyone please give their overall view on HSBC's CC AND the service provided (in general) by HSBC?

Thanks

adamc260

I opened one recently too and was like woah -.-!!! I read it that they were going to charge me for just having the card or something! It isn't very clear, even if you've dealt with things like this before!

The woman on the phone said if I maxed the card out and made like the minimum payments, that's the amount i'd be looking to pay on interest (or something along those lines!)