HSBC Loan & PPI - Is It Too Late?

cariadai

Hi everyone

I took out an unsecured personal loan with HSBC in February, with a special offer that postponed the first loan repayment. This is now due on the 17th April. I've been a HSBC customer for years, and naively assumed that the interest rate on this loan would be favourable. I feel really stupid now, but I didnt even check it (gasps all round). Since then, I found this website and have made huge changes to my financial affairs. I checked the interest rate on the loan, and its a huge 14.9% APR. The initial loan was for £5000, plus £1250 PPI, making a total of £6250, and a total repayable over 62 months of £8923.04. Apart from this loan I have £1000 of credit card debt, so what I would like to do is get a replacement loan of £6000 at a lower interest rate, without PPI (which I really don't need) and pay off the cc's. I've looked into a few loans at around 6% and I could do this and still be paying less in total than on the £5k loan with HSBC. But my question is this: since I havent paid my first installment with the HSBC loan, how do I stand, particularly with the PPI? Would I just have to pay off the £5000 loan, or also the PPI? Could I negotiate a better interest rate loan with HSBC themselves at this stage, or would I be better switching? I have good credit rating, by the way. Any advice will be greatly appreciated - as you can probably tell, I am hopelessly naive about this kind of thing, but determined to get more savvy!

Troodle

Powellie

Hi there

I am an HSBC customer too and have a big loan with them and they were offering 7.9% APR just last week to me.

There should be a cooling off period if you haven't paid you first instalment yet...you should have the option of closing down the loan and re-opening it with a better interest rate??? If you can do this then definitely cancel their PPI you can get it seperately if you need to.

I have been with HSBC 11 years and I was offered 7.9% APR on a loan.

Get into you branch ASAP and talk to them...check you T& C about a cooling off/cancellation period. Maybe if you can cancel it altogether!

Hope this offers some help?

Good luck

Powellie

maforduk

Good Advice there Powellie.

xmaslolly76

I have a big loan with hsbc as well my apr is 8.9% i think you may need to renegotiate with them however i had a problem like this with a smaller loan i took out with them and they said i would have to wait at least three months before they could process a new loan with favorable apr and there was also a chance that the system will refuse you if you do apply any sooner than that as it has only just processed the loan you have now

acheekymunky

I too have recently got a loan with HSBC bank (my bank for 12 years) and accepted although the interest was quite high (cant remember at this point) which I accepted (as i had applied for numerous low interest loans and been turned down by all of them). I was told my HSBC that I couldnt take the loan unless I purchased PPI. I have a £7000 loan paying back £9330 over 7 years. Would be grateful for any information or advice in lowering this loan.
Cheers guys >:o)

maforduk

See **HERE**
Write to them telling them that you were mis-sold the PPI on the grounds that you were forced to take it or you would not be eligable for the loan.

acheekymunky wrote:

I too have recently got a loan with HSBC bank (my bank for 12 years) and accepted although the interest was quite high (cant remember at this point) which I accepted (as i had applied for numerous low interest loans and been turned down by all of them). I was told my HSBC that I couldnt take the loan unless I purchased PPI. I have a £7000 loan paying back £9330 over 7 years. Would be grateful for any information or advice in lowering this loan.
Cheers guys >:o)

cariadai

Powellie wrote:

There should be a cooling off period if you haven't paid you first instalment yet...you should have the option of closing down the loan and re-opening it with a better interest rate??? If you can do this then definitely cancel their PPI you can get it seperately if you need to.

Unfortunately the cooling off period has expired - this loan was a special offer where you don't make your first payment for three months, so the loan actually started in January. And I'm being turned down left, right, and centre for all the low interest loans I was applying for. So I guess my only option is to talk to HSBC about a different loan, without PPI, and hopefully with a bit less APR. I'll do that once the first payment has gone out, next week.

Incidentally, I have also gone ahead with requesting a list of all charges from the account over the last 6 years, with the plan of requesting their refund. I've worked it out at about £2000 including the 8% interest. Perhaps this will jeopardize my chances of changing loans with them, who knows. But that £2000 will certainly help towards paying my debts off.

Troodle

cariadai

You might remember I posted on here a couple of weeks ago about my HSBC loan, which was 14.9% APR and had PPI that I didn't want. Well, despite my high hopes, I was unable to get a replacement loan with another bank. I contacted HSBC to cancel the PPI, and since it has been a few months since I took the loan out, I have only been able to get a portion refunded. £850 out of £1250. Still, I'm looking on the bright side - that takes my repayments down from £150 to £120 a month. And next time I'll know better before rushing into a loan without checking everything verrrry carefully first.... (not that there will be a next time, but you know what I mean).

Troodle

maforduk

It's good that you didn't get another loan out to replace it. That's the LAST thing you want to do.