Career Development Loan in Disquise....I need some advice

lozabear22

This is my first post so please be gentle......

In September 2004 I took out what I thought was a CDL but I was wrong.

I took out £20,000 payable over 72 months at £366.67. I was advised by my local HSBC branch that the payments start in September 2005.

To my shock my loan has been acummulating interest since Sep 2004!!!! When I took out the loan I asked when the interest starts from - I was informed that it wasnt until I started paying back the loan!!!

I am really annoyed with myself for being so stupid!!!!
Is there any way I can complain? - I am loathed to pay the interest....
Should I apply for a new loan and pay this one off? the interest rate in 5.9%

Thank you for listening to my rant :-)

:xmassign:

grumbler

Welcome to MSE!

lozabear22 wrote:

...In September 2004 I took out what I thought was a CDL but I was wrong. ... I took out £20,000 payable over 72 months at £366.67. I was advised by my local HSBC branch that the payments start in September 2005. To my shock my loan has been acummulating interest since Sep 2004!!!!

I am sorry, but surely you just misunderstood the adviser. AFAIK CDL is a loan with deferred repayment, but not interest. How could you believe that bank would give you £20k for a year for free?

Is there any way I can complain?

You can try, but it will be very difficult to prove that you was misadvised ...

Should I apply for a new loan and pay this one off? the interest rate in 5.9%

5.9% is a good rate, although you can try to do something:

Cut the cost of existing loans?
Personal Loans: how to get the UK's cheapest

And read your Credit Agreement at last. Your provider can penalize you for early repayment.

Rafter

Of course you pay the interest!

£1200 to borrow that much for a year sounds steep, but with 3% inflation the real cost is only £600 which is not a huge amount considering you are using the money for an MBA or something.

Just because you can borrow £'000s at 0% using credit cards, doesn't mean the banks can afford to do that forever or that paying 6% to borrow a large sum of money without making a payment for a year isn't actually a really good deal!

R