Please help! Once refinance hsbc loan can't change mind!

Moneymessup007

Hi, my first post here...
Now two days ago me and my girlfriend decided to borrow 5000 from hsbc for a car.
We already had an existing loan with them which we were paying easily for a year. We have always done things in branch before but this time a late night insanity decision to apply online took over. It gave us the option to pay off our old loan with a new one. A drawdown they called it. We done it to keep one monthly payment but we screwed up as the existing loan was only 7% but the new one 15.9 % !!! Before we knew it my girlfriend had pressed the acceptance because we looked at the monthly repayment but failed to view the total repayable properly. The interest over the 4 years is over 3500 for the 5000 we borrowed due to the 15.9% apr .
10900 was borrowed
Original loan 5892 was paid off ( actual remaining was 6444 but early repayment figure lower)
5007 left for us
14500 total repayable due to apr.
We are aware of 14 day cooling off period, if we had left old loan as was and took out new one then no problem they take money back forgotten about.
BUT....because we chose the drawdown old loan pay off option they said initially that nothing could be done because the old loan does not exist anymore. Said we must credit account with the full 14500 to close loan.
Then I rang and someone else said they will add the money to clear outstanding on new loan and recalculate the old loan at the new interest rate of 15.9% meaning that our mind change has cost us over two grand!!! In branch said it's all dealt with over phone and they can't help I must call loan team.
Nowhere during the application or small print t& cs on the entire site or net does it state this about a refinance loan mind changer. It's awfull.
Yes we should of gone to branch.
Yes we were careless.
But hsbc I think should of prompted these consequences if we were to press accept to it.
Any advice?? Anyone experienced this??
Thanks

opinions4u

You appear to be asking for the lender to throw up a range of pop-up screen warnings based on being able to read your mind.

There are numerous different scenarios, based on the requirements and expectations of numerous different people. Programming a computer to effectively understand all of these and throw out warnings for each and every one could lead to a ridiculous number of pop-up screens that applicants would simply click ok on without reading.

It was your call. Your decision. Your outcome. Your best get now is to rely on goodwill to unwind things, not blame.

[Deleted User]

I'm :huh:

On the one hand you say "The interest over the 4 years is over 3500 for the 5000 we borrowed due to the 15.9% apr."

Then you say "10900 was borrowed".

So which one was it?

If it was the first, I'd complain, because you are paying roughly double the charges you should be.

If it's the latter, I'd keep quiet about it, because you are paying about £400 less than you should.

Mulder00

Bedsit_Bob wrote: »

I'm :huh:

On the one hand you say "The interest over the 4 years is over 3500 for the 5000 we borrowed due to the 15.9% apr."

Then you say "10900 was borrowed".

So which one was it?

If it was the first, I'd complain, because you are paying roughly double the charges you should be.

If it's the latter, I'd keep quiet about it, because you are paying about £400 less than you should.

Op said new loan was for 5000 and old loan being paid back was settled at 5900, thus making up the 10900 figure. Maybe he's just quoting the different figures? The totals look about right at the APR...

I've applied for two loans on HSBC's website before and I will admit, it's scarily easy, because you think you are still looking at a quote and the next minute the money is in your account (and I am the type of person who will read through everything to make sure I know what I'm doing).

That rate seems VERY high...my current rate is 7% (or in the region of) and my previous one was something like 5% (special offer at the time).

You're only about 1000 worse of than you would have been if you refinanced part of the deal over 5 years at the same APR.

worried48

Mine is 16.9%

Cash_Flow

Moneymessup007 wrote: »

Hi, my first post here...
Now two days ago me and my girlfriend decided to borrow 5000 from hsbc for a car.
We already had an existing loan with them which we were paying easily for a year. We have always done things in branch before but this time a late night insanity decision to apply online took over. It gave us the option to pay off our old loan with a new one. A drawdown they called it. We done it to keep one monthly payment but we screwed up as the existing loan was only 7% but the new one 15.9 % !!! Before we knew it my girlfriend had pressed the acceptance because we looked at the monthly repayment but failed to view the total repayable properly. The interest over the 4 years is over 3500 for the 5000 we borrowed due to the 15.9% apr .
10900 was borrowed
Original loan 5892 was paid off ( actual remaining was 6444 but early repayment figure lower)
5007 left for us
14500 total repayable due to apr.
We are aware of 14 day cooling off period, if we had left old loan as was and took out new one then no problem they take money back forgotten about.
BUT....because we chose the drawdown old loan pay off option they said initially that nothing could be done because the old loan does not exist anymore. Said we must credit account with the full 14500 to close loan.
Then I rang and someone else said they will add the money to clear outstanding on new loan and recalculate the old loan at the new interest rate of 15.9% meaning that our mind change has cost us over two grand!!! In branch said it's all dealt with over phone and they can't help I must call loan team.
Nowhere during the application or small print t& cs on the entire site or net does it state this about a refinance loan mind changer. It's awfull.
Yes we should of gone to branch.
Yes we were careless.
But hsbc I think should of prompted these consequences if we were to press accept to it.
Any advice?? Anyone experienced this??
Thanks

You can always pay off a chunk with the £5000 you have in your account, and over pay the rest to bring the Interest cost down.

Mulder00

Cash_Flow wrote: »

You can always pay off a chunk with the £5000 you have in your account, and over pay the rest to bring the Interest cost down.

That leaves the OP without money for a car and my understanding with HSBC is that you have to pay the full balance if you want to repay early, so I very much doubt that it will bring down the interest...

It's a difficult situation to be in.

Cash_Flow

Mulder00 wrote: »

That leaves the OP without money for a car and my understanding with HSBC is that you have to pay the full balance if you want to repay early, so I very much doubt that it will bring down the interest...

It's a difficult situation to be in.

You need not pay back the full balance, you can overpay any amount you like in accordance with the consumer credit directive.

With regards to having money for a car, the OP can apply for a better loan with someone else when they are in a more favorable position.

Mulder00

Cash_Flow wrote: »

You need not pay back the full balance, you can overpay any amount you like in accordance with the consumer credit directive.

With regards to having money for a car, the OP can apply for a better loan with someone else when they are in a more favorable position.

HSBC does not make it very easy to overpay or pay off early. I have six months left on a loan with them and I can pay it off now, however, the hassle involved meant that I'd rather just leave it...

Cash_Flow

Mulder00 wrote: »

HSBC does not make it very easy to overpay or pay off early. I have six months left on a loan with them and I can pay it off now, however, the hassle involved meant that I'd rather just leave it...

It all depends on when your loan was taken out. When the consumer directive was introduced the repayment options swung in favor of the consumer.

Regardless of who the lender is.

How long ago did you take your loan out?

From HSBC's website

You can repay your loan in full at any time by giving us notice in writing, by visiting a branch or by calling us on 08457 404 404. Once you've given us notice, we'll give you a settlement figure. It's necessary to pay all the amounts owed if you wish to close the loan. Where you make an early repayment, there may be a reduction in the amount of interest you'll have to pay and this will be reflected in the settlement figure. Please note, there is a penalty of one month's interest for repaying your loan early.

Overpayments
If you take out a loan, you'll be able to make overpayments or lump sum repayments to your loan. These payments may reduce the amount of interest you pay over the term of the loan.

[Deleted User]

Mulder00 wrote: »

and my understanding with HSBC is that you have to pay the full balance if you want to repay early

That's not my experience.

They told me, if I ever want to make an additional payment, to just ask an advisor for a form, fill it in, and pay over the counter.