Help with Tesco Loan

Space_Monkey

Hi,

My partner signed up for a £10,000 study course and to pay for it, initially took out an HSBC loan at around 16%. Realising could get a better deal and needed a bit extra so contacted Tesco's, I'm sure with the intention of taking out a £10,000 loan at around 5%, paying back the initial one. An advisor came to our house to finalize this and ended up taking out £3,500 with them at around 16% over a much longing period just so he could aford the repayments. This has resulted in a loan costing an additional £10,000 as well as mounting bank charges as he struggles to balance everything. I am trying to sort out a consolidation loan at 5.1%, and unfairly charged by HSBC, we have had £1000 of charges in the last year. I am also about to be made redundant.

Does anyone have any advise as to the best course of action?

I feel Tesco bullied for the bad deal and acted in thier own interest as that is what has caused all the problems. Also, is it worth chasing the bank charges, I feel strongly they are unfair!

Best,

SP

USM

Providing your partner is over 18, and of sound mind they are responsible for evaluating things like their personal finances and making responsible choices.

Nobody else is at fault here. Sorry.

CLAPTON

Space_Monkey wrote: »

Hi,

My partner signed up for a £10,000 study course and to pay for it, initially took out an HSBC loan at around 16%. Realising could get a better deal and needed a bit extra so contacted Tesco's, I'm sure with the intention of taking out a £10,000 loan at around 5%, paying back the initial one. An advisor came to our house to finalize this and ended up taking out £3,500 with them at around 16% over a much longing period just so he could aford the repayments. This has resulted in a loan costing an additional £10,000 as well as mounting bank charges as he struggles to balance everything. I am trying to sort out a consolidation loan at 5.1%, and unfairly charged by HSBC, we have had £1000 of charges in the last year. I am also about to be made redundant.

Does anyone have any advise as to the best course of action?

I feel Tesco bullied for the bad deal and acted in thier own interest as that is what has caused all the problems. Also, is it worth chasing the bank charges, I feel strongly they are unfair!

Best,

SP

I'm a bit confused

he has a HSBC loan for 10,000 at 16% ?


a representative of Tesco's came to his loan and he then took about a loan for 3,500 at 16%?

what did he do with the 3,500 tescos loan?

Why are HSBC making charges ; has he defaulted on their loan or going over his OD or what?

does he have an job and income?

SeanG79

Waste of time because the replies are not what you want to hear?

If you are not financially sound then its your responsibility to seek independent advise from a 3rd party.

imoneyop

Space_Monkey wrote: »

I feel Tesco bullied for the bad deal and acted in thier own interest as that is what has caused all the problems. Also, is it worth chasing the bank charges, I feel strongly they are unfair!

I didn't know that Tesco had advisers who visited people at home - are you sure the person he saw was from Tesco?

maginot

Space_Monkey wrote: »

Hi,

My partner signed up for a £10,000 study course and to pay for it, initially took out an HSBC loan at around 16%. Realising could get a better deal and needed a bit extra so contacted Tesco's, I'm sure with the intention of taking out a £10,000 loan at around 5%, paying back the initial one. An advisor came to our house to finalize this and ended up taking out £3,500 with them at around 16% over a much longing period just so he could aford the repayments. This has resulted in a loan costing an additional £10,000 as well as mounting bank charges as he struggles to balance everything. I am trying to sort out a consolidation loan at 5.1%, and unfairly charged by HSBC, we have had £1000 of charges in the last year. I am also about to be made redundant.

Does anyone have any advise as to the best course of action?

I feel Tesco bullied for the bad deal and acted in thier own interest as that is what has caused all the problems. Also, is it worth chasing the bank charges, I feel strongly they are unfair!

Best,

SP

If he already had a loan at 16% that he was struggling to pay back, there is little to no chance of him being able to get a 5% loan.

He did well to get a £3500 loan at the same rate.

I presume the charges are for defaulting/late payments etc. if it happened once then they may have been able to get a goodwill gesture from the bank. To rack up £1000 just in charges (are you including interest) means many late payments and generally it has been found that charges for not meeting the contract are fair so you will have little recourse.

You should start looking at your finances together to see where you can both cut back to pay off the loan as quickly as possible and rebuild credit ratings, as defaults and missed payments could impact on future credit.

DCFC79

Space_Monkey wrote: »

The only advice I was after is about the poor advice on the loans and the charges. I think I got my answer. Forgive me if I have my own opinion on that though.

Kind Regards,

So what reply were you after then ?

gb12345

Space_Monkey wrote: »

The charges were on current account, £225 in one month, we wasn't notified until four months worth of charges were taken.

How exactly did he repeatedly rack up £200+ of charges a month on a current account? And when was this.

Space_Monkey wrote: »

The only advice I was after is about the poor advice on the loans and the charges. I think I got my answer. Forgive me if I have my own opinion on that though.

I don't see that there was poor advice on the loan - he needed 10k, already had 6.5k, they couldn't offer 10k at a better rate, so topped up the loan to a total of 10k.

I note you didn't comment on imoneyop's query about whether it was definitely Tesco the adviser was from - I too have never heard of Tesco having advisor's, they are an Internet banking brand.

Also, you are very unlikely to get any sort of consolidation loan (and especially not at 5%ish) unless he is earning around the 40k mark.

Apples2

Space_Monkey wrote: »

The only advice I was after is about the poor advice on the loans and the charges. I think I got my answer. Forgive me if I have my own opinion on that though.
,

I can't grasp were you think the bad advice was. You requested a loan and this guy suggested you repay it over a long time to keep the repayments down, ergo, more affordable to you.

The charges you mention are phenominal, there is no way you should ever have considered taking out a £10k study loan in the first place. No qualifications are required to work that out.

What happened to all the loan money though? Is he actually studying? If so, leave that nonsense and get a job, earn a wage and pick yourselves up again. you need all the income you can get.

demontfort

So to be clear you've got the following Loans:

• £6500 HSBC Loan at 16%
• £3500 Teco Loan at 16%

1. You want another bank to to lend you:

• £10,000 at 5.1%

You will then use this money to repay the Tesco and HSBC loans.

2. You also want some banks charges refunded



Being realistic :

• You won't get a £10,000 loan at 5%, you may get another £10,000 loan at 16% or more.
• You won't get any bank charges refunded.

So forget about the above. My advice:

• Cut back on your spending and focus on repaying the loans so you don't incur any more charges.
• If you have any of the loan money left see if you can negotiate with Tesco/HSBC and use the money to overpay the loan or repay a chunk.
• Don't let you partner negotiate a loan again

As you pay down the loan you may be able to get a better loan deal elsewhere a few months/years down the line and repay your current loans. But that's for the future, for now just focus on meeting your loan commitments.

Good Luck

redpete

demontfort wrote: »

So to be clear you've got the following Loans:

• £6500 HSBC Loan at 16%
• £3500 Teco Loan at 16%

No, her partner has these two loans.

1. You want another bank to to lend you:

• £10,000 at 5.1%

You will then use this money to repay the Tesco and HSBC loans.

Correct.

Being realistic :

• You won't get a £10,000 loan at 5%, you may get another £10,000 loan at 16% or more.

Depends on the OP's circumstances, different from her partner's.

Space_Monkey wrote: »

The only advice I was after is about the poor advice on the loans ... I think I got my answer. Forgive me if I have my own opinion on that though.

We don't know what your partner said to the advisor/agent. If he said that he wanted to cut down the monthly payments then this has been achieved. I would imagine the wish for a £10k loan at 5% was always unrealistic.