Help!!

lilbil_2

Hi, wondering if anyone has had any experience with a company called Beneficial Claims? I was advised to contact them by a friend as they are looking into loans taken out before april 2007 and can get them written off. I have a horrendous loan with HSBC that i took out in Dec 05 for £15,800....accoring to them it finishes in 2018 and between now and then i will pay them a staggering £27,000...i feel sick at the thought beneficial claims want £245 off me to deal with my claim, thinking it is worth it if its likely the £9,800 i owe on the laon will be wiped...rather £245.00 than £27,000!!! Anybody got any advice? Surely HSBC cant justify this?? HELP!!

nikki1520

I wouldn't touch them with a bargepole. If you've been mis sold Payment protection, then there is a really good forum on here. There were reports in the papers yeaterday that a judge had not released someone from a loan agreement on a technicality (no signed credit agreement, or whatever) so these cases may well soon become unwinnable. However, if you did want to go down this line, it's going to be cheaper to do it yourself.

Anyone who wants to charge you money for this sort of thing is asking for money for old rope - goes for bank charge reclaiming as well. If you hang around here for a bit, I'm sure one of the banking specialists would be able to give you some more detailed advice.

As a starter for ten though, what is the APR on the loan? And why is it such a long term? These are probably the reason why the overall repayment amount is so high!

Chin up though - the cavalry will be here any minute!

nikki1520

In fact, just found the thread

http://forums.moneysavingexpert.com/showthread.html?p=25853323#post25853323

lilbil_2

Thanks Nikki, i claimed the bank charges myself and was refunded...does the same apply with this? I am not adverse to paying my debts i just cant stomach teh idea of handing HSBC £27,000 more Eek! Its a managed loan...11% over BOE base rate...nice ey! The interest goes on monthly so while IR are low its great for me. I took this out as this was all they said i could have after offering me everything on a plate prior to this, being young and naive at the time i didnt think i had any option!

CLAPTON

well

a loan of 15,800 over 13 years with total payments of 27,000 works out at just less than 10% APR
many people would consider this quite a good rate.

the reason you are paying so much in total is the amount of time you are taking to pay it off.

without knowing your circumstances maybe you could consider paying more each month and so clear the debt quicker and with less interest

lilbil_2

The £27,000 is from now until 2018....ive been paying it since Jan 2006, i only owe 9,800.00 now!

CLAPTON

very confusing

how much are you paying each month?
however
9,800 over 9 years and paying 27,000 in total is about 32% APR

Not knowing your financial circumstances, it's a little difficult to comment but is it possible to get a new loan at lower APR and use the money to clear this one off?