Had to take out loan to pay hsbc charges!!

jenniferdew75

During a period of unemployment I was forced into my overdraft, because I was unemployed I had nothing going into my bank to repay this. I ended up going over by a small amount and then the charges started mounting up. My initial overdraft limit was originally £400. I eventually ended up with a £900 overdraft that I didn't even ask for. Hsbc's answer was to give me a loan for £1000. I accepted this as I was told I had no other choice. I had no idea it was unlawful. Will I be able to claim some of this money back??

Thanks to anyone who feels they can help.

GarethR

jenniferdew75 wrote: »

During a period of unemployment I was forced into my overdraft, because I was unemployed I had nothing going into my bank to repay this. I ended up going over by a small amount and then the charges started mounting up. My initial overdraft limit was originally £400. I eventually ended up with a £900 overdraft that I didn't even ask for. Hsbc's answer was to give me a loan for £1000. I accepted this as I was told I had no other choice. I had no idea it was unlawful. Will I be able to claim some of this money back??

Thanks to anyone who feels they can help.

Thats a good question & one which Im sure the FO would be interested in. I would have thought that the interest on your £900 would be greater than the interest on the £1k loan but that depends what rate you got.

I would calculate all your charges plus the interest using the Calculator on this site & see what it comes up with. You will only get the interest via a court though the FO will only get you your total charges although they may make an exception seen as you were forced into a loan to pay them off. Halifax did to me what has happened to you but I refused a loan & said you can have £20 a week The biggest charge I got from them was for £148!!!

Maybe Martin or Edingughlass can help you more on this one..

jenniferdew75

Thanks gareth! and go you for sticking it to the man!! Whats the FO? lol sorry I'm new at this money saving stuff.

Cheers

shevfiesty

jenniferdew75 wrote: »

During a period of unemployment I was forced into my overdraft, because I was unemployed I had nothing going into my bank to repay this. I ended up going over by a small amount and then the charges started mounting up. My initial overdraft limit was originally £400. I eventually ended up with a £900 overdraft that I didn't even ask for. Hsbc's answer was to give me a loan for £1000. I accepted this as I was told I had no other choice. I had no idea it was unlawful. Will I be able to claim some of this money back??

Thanks to anyone who feels they can help.

Hi, i was just reading your post and wondering what was unlawful? The loan you was offered to pay off your overdraft? Because i was in the same situation with HFC but with a creditcard and a loan. They basically told me the wouldnt stop adding the monthly charges. They offered a loan to pay off the c/c with only £66 interest which i felt i had to take as £66 was literally 3 months of fees and at least they would stop adding charges!

danielle24

Regardless of legality, it's a doddle to get the money back off HSBC. Are the charges in the last 6 years? if yes then have you got a list of when and how much they are? Then get writing!

More info on HSBC threat but if you write to them asking for charges back they will offer you around 85% of the figure you've given for charges, and you won't get interest. They're busy so you'll have to wait eight weeks after the first letter for an offer.

If you go the MCOL (court) route you'll get the whole lot plus interest - the drawbacks being it's a bit more complicated but you'll have the support of everyone on MSE!

It's really up to whether you feel up to doing but seeing as you've basically had to pay interest on charges (!!!!) you might need to go the whole hog to make sure you're not out of pocket.