HSBC Bank loan

marktheman1962

It may be that there is nothing for me to be safe from. I'll close them if I am obliged to. I just want to know if I am under a legal obligation to do so.

DCFC79

If its in the contract to close the cards then close them, you agreed to close them so close them. Your under a contract obligation to do so.

What legal obligation would you break if you didn't close the cards ? None as far as I know, I don't believe you will have the police knocking.

But read your contract, go through it with a fine toothcombe.

Pixie5740

marktheman1962 wrote: »

Hi Pixie, I am not after a moral judgement - just the legal answer to my original question.

I gave you the legal answer...READ YOUR CONTRACT...because we cannot read it from here.

JuicyJesus

I doubt they would check. But then if you go to them with financial difficulty in the future and say "I have all this credit card debt from XYZ" then they'll probably raise a few eyebrows.


Generally I don't recommend lying to financial institutions.

marktheman1962

I have read the contract and I have mentioned in this forum that there is nothing in the contract relating to the credit cards or indeed the purpose of the loan.

Sorry, where is your legal answer?

I can't read the T&C of your loan from here. However, I thought the whole point of consolidating (which I'm not a fan of) was to restructure your debts and pay them off. If you keep the credit cards account open what's to stop you overspending again and ending up with another £15k of credit card debt and the loan?

marktheman1962

Generally I don't recommend lying to financial institutions.

That raised a smile - isn't that how the financial institutions do their business.

Pixie5740

marktheman1962 wrote: »

I have read the contract and I have mentioned in this forum that there is nothing in the contract relating to the credit cards or indeed the purpose of the loan.

Sorry, where is your legal answer?

The legal answer is that I can't read your T&C from here because the legalities are contained in the contract you signed. So if you missed that in my reply goodness knows what you haven't read in the T&C.

TrustyOven

marktheman1962 wrote: »

Hi - just taken out an HSBC loan for 15k to consolidate debt. During the application process I was asked to close the two credit cards after clearing them with the loan, Barclaycard (17k limit) and Bank of Scotland (16k limit).
Question - Now I've cleared them, am I obliged to close them?
Thank you

Were you asked to close the credit cards because that was the bank's condition for giving you the consolidation loan?

i.e. if you didnt agree to close the CCs, would the bank have refused to give you the consolidation loan?

i.e. if you kept the cards open, the bank was extending your debts, not shifting them to the loan? So the bank was increasing their risk for your sake. Maybe they would not have been happy to do that.


Seems the right thing to do would be to close the CCs.

I'm not sure why you are not interested in the moral answers though.

marktheman1962

I'll make it simpler.

If there is no mention of closing other borrowings in the written contract and its terms and conditions does a verbal promise to close any accounts prior to the signing of the contract have any obligation.

marktheman1962

Were you asked to close the credit cards because that was the bank's condition for giving you the consolidation loan?

i.e. if you didnt agree to close the CCs, would the bank have refused to give you the consolidation loan?

i.e. if you kept the cards open, the bank was extending your debts, not shifting them to the loan? So the bank was increasing their risk for your sake. Maybe they would not have been happy to do that.


Seems the right thing to do would be to close the CCs.

I'm not sure why you are not interested in the moral answers though.

Thank you for your reply. I know the right thing to do, that is to close the cards. I merely want to know if I am obliged to.