3.9% APR loan is misleading?

Silenciosa

I'm new to this site and came across it whilst trying to see what else I could do about what I see as extreme unfairness from HSBC.
I have been their client for the last 9 1/2 years. I had also had an account at a young age with the old Midland bank.
Through online banking I saw they were doing this amazing personal loan at 3.9% APR. Since I have a credit card with them which I must admit I am paying a very high rate (increased from 18.9% to 21.1% or around that - unsure of amounts) I thought I'd take a loan and clear off the card plus take a holiday since their low APR is for loans from £7k to £15k. I was looking at borrowing £8k during 36 months.
So I was brave and applied for it online. It told me I had to contact the bank by telephone. I did. After asking me a few question (eg. what the loan was for) they said it had been approved but the rate was 9.9% APR. I queried it and was told that that was it. I asked if they could put it in writing and was told no. Seems they can only put in writing if I had accepted the offer.
Anyway... I went to my local branch and asked who I could complain to and explained the situation. I was told to join experian or equifax. I joined experian and my credit score was showing as excellent at 965. The only downside on it was a credit score check by HSBC which meant when they checked it was even higher.
My only debt is to HSBC and is that c/card. I have never missed a payment on anything nor with anyone. Seeing that the loan is to clear the card then that would vanish from the account anyway.
After checking with Experian I tried applying again and was told to contact them again.
I decided to email them. Found a customer care team email address. Emailed them. Had no reply for a couple of days so sent them a message on online banking asking why no reply. Was told that they "never received said message". Asked me to email again which I did and had an email confirming receipt but no other reply so far.
I have also sent a complaint to the financial ombudsman. Just saw on the forum they don't see to be as helpful as I first thought.
I keep being told by HSBC that the APR they offer is due to "several factors". All I want to be told is "this is the main reason why we offer a higher rate" or "if you change this then we can revise the offer".
Just feels like they are offering the higher APR as then I won't be paying the ridiculous interest I'm currently paying (around £55-£60 per month just interest). It feels like they are saying that since they will not get as much from me then they will charge me more.
Without me asking they increased my c/card limit to £6.5k. For them to do that they know I will repay that amount and likely a high interest amount. If they are confortable enough to do that then why charge me such a higher rate?
Are they misleading customers? I had another friend who has no debt at all and applied and had the same answer as me. I have a decent enough salary and gets paid monthly into HSBC and has been for the last 9 1/2 years.
Is there any way they can actually prove they have offered this rate in good faith?
It truly doesn't feel like it. It feels like they refuse to discuss the subject and suggest any positive solution to what I'm querying.
I am currently waiting a response from the customer care team and from the Financial ombudsman but seems like I shouldn't hold my breath.
If there any place I can complain if I truly feel they are misleading customers? It feels they hold out a sign saying an excellent deal here but then it's all fake.
I'm sorry it is such a long post but am truly at a loss on what else to do.
I'd appreciate any help or advice if possible.
Thank you

CLAPTON

how much do you owe
what is your salary
are you on the electoral roll
over the last 9 years how many have you been in debt?

YorkshireBoy

So you've turned down the 9.9% loan on principle.

That principle is costing you 21.9% on the same debt.

Doesn't make sense to me throwing away the chance to more than halve your debt servicing costs.

Then again, nor does it make sense to me to be still paying for a holiday 2-3 years after you've had it!

Your FOS complaint is futile. HSBC will be able to demonstrate that 51% of successful applicants receive the representative 3.9% APR.

DCFC79

Your score means nothing.
They don't have to lend to you.
51% of applicants get the advertised rate.
You got scored on the internal system and it decided based on the info they have about you to offer you 9.9%.

9.9% isn't bad, certainly better than what your paying on the card.

dealer_wins

Credit card deb and borrowing more for a holiday. No wonder they didnt give you their best rate, this is not low risk borrowing.

Holidays are meant to be saved up for, not borrowed for.

Silenciosa

Dear Clapton,

Salary is £25k, am on the local electoral roll, I owe £3.5k and I have had the credit card for the last 4 to 5 years I think. I have had other small credits (purchasing goods, small loan, etc) which have all been fully paid and I have never missed a payment on anything.
I have thought about perhaps clearing off a great part of the credit card but then thats what i really wanted the loan for.
Just feels like it's a vicious circle... When all i want and need is for them to say "this is what needs changing" or "this is the main factor". *sigh*

YorkshireBoy

When they rate jacked you, why didn't you exercise your right to close off the card to new purchases and stay on the old rate?

Additionally, when don't/can't you BT the debt to a 0% card?

Silenciosa

Ps. Asking for the £8k simply because their APR decreases greatly after £7.5k.

And yes I agree that the 9.9% is still better compared to what I am paying on c/card and i am fully aware they don't have to lend and i have stated that to them. just doesn't seem to be very fair when someone who has no debt also applies for the same loan and also gets the same rate as me.

And i mentioned holidays as they wanted to know what the rest of the amount was needed for - I can cover the cost of the holidays from my normal account however then I can justify asking for a higher amount than just the c/card balance.
hope that makes sense.

Thanks

Nearlyold

Representative APR is an advertised APR that a minimum percentage of customers (who are accepted) will pay. The current minimum percentage is 51%.


Other than complain as you already have then I don't think there is much else you can do, FOS have no power to force a lender to give you a loan at any particular APR or indeed at all.


Provided HSBC can demonstrate to the regulator they are lending at that APR to the required 51% (or could reasonably expect to be lending at that % to those that are likely to apply and be approved) then in the eyes of the regulator there is no wrong doing.

PETIE

Why not get a new balance transfer credit card at 0% to pay off the 21.1% card

Silenciosa

YorkshireBoy wrote: »

When they rate jacked you, why didn't you exercise your right to close off the card to new purchases and stay on the old rate?

Additionally, when don't/can't you BT the debt to a 0% card?

I should have done and was pretty naive in not doing it but...we all learn with mistakes and bumping our head into the wall.

I have to say I wouldn't have a clue about how to go about changing to another card provider
I have queried HSBC on how to change banks and no reply to that question was ever given. Guess they perhaps like me there...