HSBC Flexi-Loan

thares07

Hello

Just wondering for some help.

Back in 2009 I went into my bank to get a loan. After talking i was persuaded to take a flexi loan rather that a personal loan as they said it would suit me better. I took out a HSBC Flexi-Loan for £4000 with a monthly repayment off £160. But with the flexi loan you can take money back out except minus interest. Since 2009 ive paid roughly £50 interest and putting £100 back in current account as couldnt afford to pay the extra £100. In 2011 I decided to to do a balance transfer to Barclaycard 0% but on the end the min payment on barclaycard was near £50,so started to use flexi loan again and with in few months back up tp £4000,due to new baby on way. So as it stands i still have a £4000 flexi loan and since 2009 paid £2900 interest. Is this allowed? Could i claim anything back due to being mis-sold as oringinally i wanted a personal loan which now would have been paid off. To be honest i still cant afford to pay off anymore than interest at present time. Just seem to be stuck in a rutt with it.

Thanks for reading.

Quimoi

Assuming that the personal loan would have had the same monthly payments then it's fairly clear that the (flexi or personal) loan was simply unaffordable if you've only been able to afford to pay the interest each month.

I'm surprised that happened in 2009 when the credit crunch was at its height. Did your circumstances change after taking out the loan and/or did HSBC have all the correct details of income/debts?

thares07

Now you got me thinking about time ranges I said 2009 as that's when the statement go back to on the internet. So it may be earlier than 2009 as you mention we was in middle off credit crunch. The repayment wouldn't have been the same due to different interest rate ( flexi loan being higher). At the time off getting the loan I was 23 and in a secure job and only had one other debt £1000 loan with HSBC. I was truth with everything the asked and they knew all the facts. Like I say originally I went in for a personal loan but was told this was easier and more suitable to me. There were months when I didn't transfer £100 and could afford a bit more but other times I couldn't. My main issue is that now I'm stuck with a £4000 loan I can't pay off due to being told to take the flexible loan option on the banks account that this would be better for me. They were the ones who worked out they with all detail of salary and out goings that £160 would be OK to pay. If I had opted for a personal loan as I wanted I'm sure a £4000 loan over 5 years would work out £160 a month repayment.

Gaz83

You say you were 'persuaded' to take the flexi-loan. Can you elaborate on this? Were you advised to take the flexi-loan out instead of a personal loan? Or was it simply presented as a possible option, but ultimately one in which the final decision was yours?

thares07

When I booked the appointment to see bank I wanted a personal loan as that all knew about. It was while sitting down going through all the details. She kept on talking about the flexi loan and how its new product and much more suited to me and my circumstances. I can remember her telling me i would be more likely to be accepted for the flexi loan over a personal loan as I already had a personal loan aand going for a different product would give more leaverage.

RuthnJasper

OP - I was in the same situation as you and I was (eventually) successful with my mis-selling claim and reimbursed appropriately. Though not before many back-and-forth letters had been exchanged and after I had appealed to the Ombudsman, who upheld my case and issued a righteous b-ll-cking to HSBC in addition.

If you use the free guidelines and templates here on this site, and your case is genuine, you won't go far wrong. Best wishes to you. x

sinizterguy

thares07 wrote: »

When I booked the appointment to see bank I wanted a personal loan as that all knew about. It was while sitting down going through all the details. She kept on talking about the flexi loan and how its new product and much more suited to me and my circumstances. I can remember her telling me i would be more likely to be accepted for the flexi loan over a personal loan as I already had a personal loan aand going for a different product would give more leaverage.

So, they advised you. You thought about it (I hope) and you opted for a flexi loan.

Long story short, you took money out again - and now you don't want to pay it.

Back when you got the loan it was affordable - now you say it isn't.

So it doesn't sound like it was missold to you. You just mismanaged it.

Thrugelmir

In 2011 I decided to to do a balance transfer to Barclaycard 0% but on the end the min payment on barclaycard was near £50,so started to use flexi loan again and with in few months back up tp £4000,due to new baby on way.

Sounds as if you made other choices than to repay the loan. The picture has to be looked at as a whole in the context of you've managed your personal finances over the period.

thares07

sinizterguy wrote: »

So, they advised you. You thought about it (I hope) and you opted for a flexi loan.

Long story short, you took money out again - and now you don't want to pay it.

Back when you got the loan it was affordable - now you say it isn't.

So it doesn't sound like it was missold to you. You just mismanaged it.

INCORRECT SINIZTETGUY.

1.If I didn't want to pay i would default. Which I haven't.

2.Loan wasnt affordable at beginning thats why im still paying

3.Mismanaged incorrect misguided into a situation by someone telling me I have a better chance if I done it their way.

4.With a attitude like that are you sure your not a banker?

RuthnJasper

sinizterguy wrote: »

So, they advised you. You thought about it (I hope) and you opted for a flexi loan.

Long story short, you took money out again - and now you don't want to pay it.

Back when you got the loan it was affordable - now you say it isn't.

So it doesn't sound like it was missold to you. You just mismanaged it.

Also a valid point. If the terms, the duration and the real cost of an ongoing Flexi-Loan were agreed, fully and demonstrably explained/understood at the time the agreement was undertaken, then I'm afraid that there is no case to pursue.

sinizterguy

thares07 wrote: »

INCORRECT SINIZTETGUY.

4.With a attitude like that are you sure your not a banker?

Very.

And your attitude behooves you. Really.

If you don't like to hear opinions that doesn't coincide with yours, don't ask for advice on a public forum.