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

Superheavy

TBeckett100 wrote: »

An update, the team are aware of these issues and it will take months not weeks to contact customers so hold tight.

Better not put in the Christmas budget then...but it would be lovely if it came my way, whether it is months or not!

Loopy1213

Just had a call from hsbc saying as my personal loan started April 2010 no compensation is due. Only relevant to loans from October 2010. Is this correct?

TBeckett100

When you say they called you, did you initially contact them?
chances are you are dealing with call centre staff who on the whole deal with sausage machine queries and have no real knowledge of the bigger picture.

from what I understand, anyone who had a loan over the last few years is affected because they didn't make clean in the annual statements about your ability to repay. Having said this, it may be becuase a loan taken out pre this legislation (2010?) may not require it.

TBeckett100

How to make overpayments

The law is specific about how overpayments work, which loans it affects, and how we must go about making overpayments.
Firstly, unsecured loans taken out before 1 February 2011 are not affected. You can only make overpayments if the contract specifically says you can. However, you could take out a new loan to repay the old one in full. You might take a hit on penalties, but you should more than make up for that when you overpay your new loan more quickly.
With unsecured loans taken out after 1 February 2011, thanks to the new law, you can make overpayments without penalty in almost all situations.

FireWyrm

That's interesting. When I had a personal loan with HSBC I was specifically told that overpayments were prohibited and that the term of the loan was fixed.

I remain fascinated to see whether I have finally snagged one of the financial gravy trains doing the rounds.

Superheavy

Sounds like I'll be missing out on another payout....was hoping for a few quid but hey ho. My loan was taken out in 2009, so I probably miss the mini jackpot again!

Maybe next time.

esmerellda

I don't know if any one had had their cheques from HSBC still, but Blackhorse appear to be proactively refunding their customers interest off the back of a similar issue on their motor finance annual statements omitting some information. Have they been investigated or are they just being extra good to avoid investigation? Or is it just a one off ( I can't imagine it is) ?

R1DGDALE99

Afternoon all,

I took out a professional studies loan in 2002 and started re-paying in 2004, and was categorically told that I could not make overpayments. I was told that I needed to make 96 payments and that there was no flexibilty whatsoever.

I then consolidated this loan into a personal loan and I am due to finish paying the loan next year.

Therefore I must be entitled to a refund of interest since 2004?

It will be interesting to see how this pans out.

R1DGDALE99

For some reason i could not see the other comments which I have now digested and it seems I may not be due anything after all!

Thanks

Hyzenthlay

I read somewhere that another common error is them not including the original loan amount on the annual statement, apparenty annual statements are to include the original loan amount, aswell as the opening and closing balance. Is this true?