HSBC Bank loan

Brock_and_Roll

I would have thought there is a misrepresentation clause(s) hiding somewhere in the small print agreement that basically gives them a right to terminate inter alia if any representations made by the applicant turn out to be untrue. This will be worded to include calls, emails, forms etc.

marktheman1962

I would have thought there is a misrepresentation clause(s) hiding somewhere in the small print agreement that basically gives them a right to terminate inter alia if any representations made by the applicant turn out to be untrue. This will be worded to include calls, emails, forms etc.

Brilliant well done and thank you. Now we are getting somewhere. This is where it is:

What are our rights if you miss a repayment or
we have other concerns?
10. There may be severe consequences if:
(a) you do not make repayments on time; or
(b) we find that any information you provided as part
of your loan application was materially incorrect or
misleading; or

So I could get "severe consequences" - does that mean a tanning from the branch manager?

Not quite sure what they mean. The worst case scenario would be calling in the loan, well that's no problem I can get the money on zero interest with the Barclaycard I'm not closing as they do money transfers.

Oakdene

marktheman1962 wrote: »

Brilliant well done and thank you. Now we are getting somewhere. This is where it is:

What are our rights if you miss a repayment or
we have other concerns?
10. There may be severe consequences if:
(a) you do not make repayments on time; or
(b) we find that any information you provided as part
of your loan application was materially incorrect or
misleading; or

So I could get "severe consequences" - does that mean a tanning from the branch manager?

Not quite sure what they mean. The worst case scenario would be calling in the loan, well that's no problem I can get the money on zero interest with the Barclaycard I'm not closing as they do money transfers.

This may be true at the moment but this could well change when you have the debt from your loan...

marktheman1962

This may be true at the moment but this could well change when you have the debt from your loan...

Do you mean the credit limit may drop on the Barclaycard?

Pixie5740

So the answer was in the loan T&C all along. Who'd have though it?

A severe consequence could be getting a CIFAS market on your credit files or reported to National Hunter. You wouldn't find it so easy to obtain credit then. Not to mention HSBC calling in the loan and marking your internal customer files with a "liar liar pants on fire" warning.

iolanthe07

I think you may find that the lender will have a clause in the contract giving them the right to call in the loan at any time, as with an overdraft.

But as long as you keep up with your repayments I can't imagine why they would do that. Sam Goldwyn once said that a verbal contract wasn't worth the paper it is written on, but if the bank interviewer made notes or kept a recording, or there were other witnesses present, then theoretically the decision to keep your cards open might come back and bite you.

ReadingTim

I suspect that as long as you keep making the repayments the bank won't check - in the same way that I was probably meant to have told my mortgage provider every time I changed job, given I was no longer doing the role at the salary I put on my application form.

However, if in any of the bank's written communications with respect to this loan, you're instructed/requested to close the cards, you're likely to be in breach of your agreement with them if you don't and they find this out. The consequences of this could be withdrawing the loan/demanding repayment, and/or markers on your credit file/history such as CIFAS, National Hunter, as mentioned above. Even if you could repay the loan by borrowing elsewhere, the impact on your credit history could make all sort of things related to future borrowing - even getting a mobile phone contract, far more difficult. It's generally A Bad Thing.

So there you have it - the letter of the law and the spirit of the law. Up to you (and your appetite for risk) as to which you prefer to observe - I make no moral judgement. In respect of consolidation loans more generally, statistically speaking, many of the posters on the debt-free wannabe board have found that they haven't worked - they doubled their debt rather than reducing it, as the loan funded more spending, rather than loan repayment. Only you can decide whether you're strong enough to resist the temptation of spend up to the limit on those cards you didn't close.

marktheman1962

I suspect that as long as you keep making the repayments the bank won't check - in the same way that I was probably meant to have told my mortgage ..............

Another post with great advice. I will wait for a call or letter from HSBC - I've banked with them for 24 years so I'm sure they'll be fine.

Regarding the consolidation loan - I am in the enviable situation of not needing loan sharks or pay day loans as they like to call them, they are evil, should be stopped and often lead to misery, child poverty and crime.

I had15k shared between the Barclaycard at 18 months 0% (ending soon) and Bank of Scotland at 5.9% until balance paid off (a 45% loan to credit limit and never a payment missed in 15 years), replaced with a 60 month HSBC loan at 3.3%*. Healthy income over expenditure, moderate savings, no other unsecured lending, one credit card in use with balance cleared monthly, mortgage 15% of value at 0.55% above base for life.
*Tax relief on bank interest due to cards being used for business purchases.

So I know there is very little risk in holding the cards.

marktheman1962

I think you may find that the lender will have a clause in the contract giving them the right to call in the loan at any time, as with an overdraft.

More good advice, much appreciated.

marktheman1962

QUOTE]You are under no legal obligation to close the credit card accounts.
[/QUOTE]
There's the answer I've been waiting for.

This is my last loan, I want my business cleared of debt by the time I'm 60 with the mortgage paid off too. I'll call HSBC in 12 months and ask them to remind me if I should have closed the credit card accounts - unless they come knocking before then.