Warning to students, the banks are out to get you

DeborahT

I want to warn students of the irresponsibility of banks in dealing with students. My son who is at uni lost his job through an accident so was unable to put money into his student account. He was a mere £28 over his overdraft limit, I went with him to the bank (HSBC) to try to sort things out as they had cancelled his overdraft and he loan would be taken to cover it leaving no money for him to live on. They were absolutely uncompromising, their only answer was to try to forcehim to sign up t a managedloan which as we all know is a nightmare. The payments they asked for if he accepted the loan were unrealistic there is no way he could hve paid them,and default would obvioulsy get him into more debt. Their answer to this was 'ask your parents to pay'. I know that he should have been more careful but that does not excuse the banks refusal to compromise and their bullying tactics to get him to sign up to more debt. Why do they give money out beyond the overdraft limit? obviously they know students will fall into the trap, and then theyve got them for life.

Please other students beware, check youraccounts, don't borrow over your overdraft limit even by a small amount, the banks are outto get you :mad:

lynzpower

have you reported this to the FSA?

my understanding is that banks have to be "reposnible lenders" and a managed loan on zero income is only going to make your sons life 10x worse- the FSA need to be made aware. they may well investigate.

Adidtionally if your son is having financial probs ( adn who doesnt at uni ) worth speaking to the student support service and asking for a hardship grant.

ZTD

It was also my understanding, that in cases of hardship, banks were not supposed to ask their borrowers to borrow (whether commercially or from parents/family/friends) in order to pay them off.