HSBC Loan Refunds due to lack of transparency on lump repayments

andydiysaver

Hi All
I've just received a very interesting letter from HSBC concerning the longer running of my two loans saying a sizable refund is due because the annual statements omitting the option/right on partial repayments. This refund is interest to date, and is a great windfall.


I just called HSBC and pointed out I had two loans, the one I haven't got the letter about (which may come separately) has been running under a year - so they may not be paying out on that one as this is to do with annual statements, certainly when I pressed the bank on figure to be paid in on 29/12, the figure was the face value of the letter I do have - which confirms to me that only one loan is being rebated. I pressed this point to HSBC and they clammed up but practically I think they will only pay out on one loan and it is interest to date- so a sizable payment - something is amiss here because banks never pay out without being made to pay out


has anyone else had this kind of letter recently? it may be worth looking at annual loan statements and checking if there is disclosure on them of your ability to repay lump sums, because if there is lack thereof, the banks are clearly reacting to some form of legal injunction whereby they are forced to repay to cover for their omission of detail - after all banks do not pay back interest to date unless they are forced to


not arguing with the figure, pointing out something is afoot in the finance industry and there may be more potential to claim on this before the door is inevitably closed again via pressure from the big boys


all the best
Andy

[Deleted User]

Have a look at the threads on here for the background to these refunds. It's been fairly well covered.

stator

Here's a good article:
http://www.theguardian.com/money/2014/aug/09/banks-scandal-personal-loan-errors-payout-refund

Hyzenthlay

I think HSBC have other errors apart from that one. My loan was from October 2007 and i finished paying it in October 2012. All five of my statements have the same three things missing (it actually states on the second page whats missing) I think for the first one it was ok, but when the new regulations came in in october 2008 all statements after that date should have included the three missing bits of information which it still states i could request if i wanted. This would have been ok before but not after the new regs came in, total amount of credit being one of them. These had to be included on the statement