MSE News: Got an HSBC personal loan? You could be due share of £218 million in refund

amy2705598

Also, if the pre-2010 loans have no right to over-payment, why is the phrase about making total or partial over-payments now also included in our loans?

Credit_Brunch

amy2705598 wrote: »

Also, if the pre-2010 loans have no right to over-payment, why is the phrase about making total or partial over-payments now also included in our loans?

HSBC only seem to be considering loans 2010 onwards.

If you feel you have a case where a loan issued before this time should be considered for redress then you're probably best off going through their official complaints process.

This means HSBC will be required to look at the specific points you've raised and if you're unhappy at the outcome you can refer the matter to the Financial Ombudsman Service.

undulant

amy2705598 wrote: »

My Professional Studies Loan was taken out in July 2007, so before the 2010 cut off.

However, I was explicitly told by my local HSBC bank when I took the loan out that I WAS allowed to make over-payments. I also still have the official HSBC printed leaflet entitled "Professional Studies Loan" that on a page untitled "Your questions answered" has the phrase:

Can I repay my loan early?
Are there any administrative charges or penalties if I do?
You can repay early, in part of in full, at any time. There are no administrative charges or penalties for early repayment or lump sum reduction.

None of my annual statements, until the 2014 statement, included the phrase about settling in full or in part at any time.

Surely if I was allowed to repay in part, as I was told at the time, then I should have had the phrase included on my annual statements - and therefore should be also entitled to refund of the interest. And if actually I didn't have the right to repay in part, then I have some sort of claim for miss-selling of the original loan?

Any thoughts?

Good spot. I am in the same situation. I will send you a PM.

Molly80

Molly80 wrote: »

Apparently loans pre-October are not affected, even though from June 2010 customers had the right to make part payments or overpayments on their loans. I had a loan in September 2010 and was told that my loan wasn't affected. I queried this with HSBC, arguing if I had the right to make payments on my loan from June 2010 then surely this should have been on my original loan agreement and any subsequent statements.
HSBC are now investigating. I will post any updates.

To update on my previous post, I have received a response from HSBC today saying that 'customers who opened personal loans between 11 June 2010 and 30 October 2010 were eligible to make partial repayments but HSBC did not have to remind them of the partial repayment option'.


I am thinking of referring this matter to the Financial Ombudsman Service as surely if I had the right to make partial repayments I should have been told this on either my loan agreement or annual loan statements. Any advice on this matter would be greatly appreciated.

undulant

Molly80 wrote: »

To update on my previous post, I have received a response from HSBC today saying that 'customers who opened personal loans between 11 June 2010 and 30 October 2010 were eligible to make partial repayments but HSBC did not have to remind them of the partial repayment option'.


I am thinking of referring this matter to the Financial Ombudsman Service as surely if I had the right to make partial repayments I should have been told this on either my loan agreement or annual loan statements. Any advice on this matter would be greatly appreciated.

Did they tell you why? E.g. say 'because of this rule, we don't have to'? If the answer was a blanket no then it's hard to explore whether it's right or not.

I would not refer to the FOS yet; you've admitted you are guessing "surely if I had the right to make partial repayments I should have been told this" You need to bottom out the position first, relay that to HSBC, then complain.

throwaway_newbie

Molly80 wrote: »

To update on my previous post, I have received a response from HSBC today saying that 'customers who opened personal loans between 11 June 2010 and 30 October 2010 were eligible to make partial repayments but HSBC did not have to remind them of the partial repayment option'.


I am thinking of referring this matter to the Financial Ombudsman Service as surely if I had the right to make partial repayments I should have been told this on either my loan agreement or annual loan statements. Any advice on this matter would be greatly appreciated.

It's a tricky one. I'm in exactly the same situation as you, with a loan I took out in August 2010. Having read the legislation very carefully my conclusion is that I was legally entitled to make early repayment with this loan, but there is no mention of that in the loan agreement or any of the subsequent statements.

What I don't know, and can't seem to find out, is whether there is another important piece of this puzzle - WHEN banks had to tell people. The issue that results in the refund seems to be that they had it in the original loan agreements from November but didn't repeat it on the annual statements. If that's the case, then I fall out of any refund. What matters then is whether it should have been in my loan agreement in August for something that became law in June.

Anyone shed any light on this?

neiloxford

throwaway_newbie wrote: »

It's a tricky one. I'm in exactly the same situation as you, with a loan I took out in August 2010. Having read the legislation very carefully my conclusion is that I was legally entitled to make early repayment with this loan, but there is no mention of that in the loan agreement or any of the subsequent statements.

What I don't know, and can't seem to find out, is whether there is another important piece of this puzzle - WHEN banks had to tell people. The issue that results in the refund seems to be that they had it in the original loan agreements from November but didn't repeat it on the annual statements. If that's the case, then I fall out of any refund. What matters then is whether it should have been in my loan agreement in August for something that became law in June.

Anyone shed any light on this?

It seems to me that they had to tell borrowers by the start of Feb 2011 for any loans after June 2010. I would therefore think they will have to refund as they still have not told people that took a loan between June 2010 and October 2010. To me that is a mistake. Those borrowers needed to be informed by Feb 2011 which was not done.

Borrowers after end of October 2010 were told at the start of the loan, but not in the annual statements. This is a different mistake by HSBC.

neiloxford

Google search "legislation The Consumer Credit (EU Directive) Regulations 2010" brings up this:


Application of regulations to agreements entered into before 1st February 2011

100.—(1) Subject to paragraphs (2) to (5) and regulation 101 these Regulations apply only to a regulated consumer credit agreement entered into on or after 1st February 2011.

(2) The following regulations apply (from 1st February 2011) to a regulated consumer credit agreement which is an open-end agreement and is entered into before 11th June 2010—

(a)regulations 27 and 28 (information on change of interest rate etc);

(b)regulation 36 (assignment);

(c)regulations 37 to 39 (open-end agreements);

(d)regulation 46(b) (amendments to Enterprise Act 2002);

(e)regulation 63 (amendments to Consumer Credit (Running-Account Credit Information) Regulations 1983);

(f)regulation 69(b) (amendments to Enterprise Act 2002 (Part 8 Community Infringements Specified UK Laws) Order 2003);

(g)regulation 97 (amendments to Payment Services Regulations 2009).

(3) The following regulations apply (from 1st February 2011) to a regulated consumer credit agreement which is an open-end agreement and is entered into on or after 11th June 2010 and before 1st February 2011—

(a)regulation 25 (linked credit agreements);

(b)regulations 27 and 28 (information on change of interest rate etc);

(c)regulations 29 to 35 (early repayment);

(d)regulation 36 (assignment);

(e)regulations 37 to 39 (open-end agreements);

(f)regulation 46 (amendments to Enterprise Act 2002);

(g)regulations 59 to 62 (amendments to Consumer Credit (Settlement Information) Regulations 1983);

(h)regulation 63 (amendments to Consumer Credit (Running-Account Credit Information) Regulations 1983);

(i)regulation 69 (amendments to Enterprise Act 2002 (Part 8 Community Infringements Specified UK Laws) Order 2003);

(j)regulations 77 to 84 (amendments to Consumer Credit (Early Settlement) Regulations 2004);

(k)regulation 97 (amendments to Payment Services Regulations 2009).

(4) The following regulations apply (from 1st February 2011) to a regulated consumer credit agreement which not an open-end agreement and is entered into on or after 11th June 2010 and before 1st February 2011—

(a)regulation 25 (linked credit agreements);

(b)regulation 26 (statement of account);

(c)regulations 29 to 35 (early repayment);

(d)regulation 36 (assignment);

(e)regulation 46 (amendments to Enterprise Act 2002);

(f)regulations 59 to 62 (amendments to Consumer Credit (Settlement Information) Regulations 1983);

(g)regulation 69 (amendments to Enterprise Act 2002 (Part 8 Community Infringements Specified UK Laws) Order 2003);

(h)regulations 77 to 84 (amendments to Consumer Credit (Early Settlement) Regulations 2004).

(5) Section 95A of the Consumer Credit Act 1974 (compensation for early repayment) applies in relation to an agreement by virtue of sub-paragraph (3)(c) or (4)(c) only where the debtor’s entitlement to discharge his indebtedness arises by virtue of a notice made on or after 1st February 2011.

neiloxford

The question is does the above mean that borrowers between June 2010 and October 2010 should get a refund

TheCrutt

Hi I've just joined the forum although I've used Martins site before to help myself and others to claim back PPI ��
My main question to anyone I read that HSBC have not shown how to pay off fixed price loan quicker and there for save interest ��
I've also read that some have FNB loans which I too have had but does anyone have a template letter to use ??? Here's hoping TheCrutt