HSBC Managed Loan + Charges

don_leocornay

Hi,

After 3 years of getting turned over by HSBC, I've decided to to fight back.

The problem I have is that they've messed me about on so many fronts I don't know where to start, so I'll start from the front and see how it goes:

Things were going ok I'd just gone permanent in my job a few months and had a 7.5k loan (with 4500 left to pay off), student credit card and overdraft. I was going on holiday and asked for a credit limit extension. Instead of doing this they offered me a HSBC gold card. I got approved and was told that my current card would be closed immediately and the balance transferred to my new card. Unfortunately, they didn't transfer the balance for a month and in the meantime I'd already been on holiday and used up my card. Once they had finally transferred the balance I was miles over my limit with no way of getting back within it again. Every payment made was eaten up by interest and over limit fees. I asked the bank for help, they said they couldn't increase my limit or restructure my loan. The only thing they could do was offer me a managed loan, where they'd consolidate my loan, credit card and overdraft into one lump sum (9300) with a lower repayment. They didn't mention any other points (APR, length of term etc) and to drive the point in further, they threatened to take me to court over the credit card. Reluctantly I bowed to their co-ersion over the phone.

It wasn't until 3 months later that I realised that the APR being charged was 9.5% above base (approx 14% at the time). I would never have agreed to this if they'd told me.

Obviously, the bank refused to change my loan back to it's original settings and I had to look in dispair as 100 out of 157 paid each month went to interest charges.

To date I've made 8,382.44 in payments and still have 8,263.11 left to clear the debt. Based on this pace, it won't clear until 2012. If I'd stuck to the original agreement I would have paid my grad loan off last september.

I've only just found out that unsigned credit agreements are unenforceable so I've sent a letter requesting a signed credit agreement.

I've also requested the charges history on my credit cards and will put forward a request to get those back.

My main question is, when it is proved that my loan is unenforceable, can I ask for just my interst back or my payments as well? I have 3 scenarios to work out, which all work in my favour:

1/ Everything gets paid back and the loan is written off (unlikely but i'll give it a speculative prod). Including bank charges and interest, HSBC would owe me £12k (£10k without interest)

2/Net off everything paid so far against the initial debt. Then HSBC would owe me £500.

3/ They just write everything off.

All three cases I can live with as long as my credit file is cleaned up.

Any help will be gratefully received.