Please help with reclaiming HSBC bank charges.

mazy_m

Hi all,

So my partner has a bit of a habit of not paying things on time which obviously has an impact on his credit rating. Usually we'd end up OK as I was always able to get a decent 0% deal of some sort to resolve the situation. However as my wages have drastically decreased in a new job they won't seem to give me these good deals anymore.

So it comes out that he got himself in a bit of a sticky situation and is paying large amounts in interest alone each month.

Looking back through his HSBC and the annual summaries they've send for the last 4 years it's over £2000 and knowing the situation was worse in the two years before I could imagine in total for the last 6 years it's pretty much £3,000-£4,000.

He is taking responsibility in his part for that but HSBC should take some too they've effectively kept him in debt. Over those years he's asked for loan to consolidate his debts and was rejected and then a week or so later they upped his credit limit on the higher APR products. To me this is not responsible lending as they have doing their best to make as much money out of him as possible * yes I know a bank is a business at the end of the day but surely there's an issue with them doing this on more than one occasion over the years.) We've now managed to get it so that his only debt is with them ( his other APRs were even higher and this the lowest of the bad bunch) So he'd be very happy for anything received back to pay off his debt with them.

Also he took on the packaged bank account with the idea that he'd get preferential rates etc which have never materialised but I think that's another issue.

Does anyone have any experience of fighting with HSBC for this and have any advice or can point us in the right direction for what to say or do?

Thank you so much in advance.

[Deleted User]

I don't think you'll get far with the "irresponsible lending" argument, nor do I think you'll be refunded charges going back four years or more.

What you need to do is write to the bank outlining your current circumstances, because banks have a range of options available to them to alleviate financial hardship. You may, for example, be awarded a refund of the last six months charges, or they may freeze interest for a time on any amounts still owing.

Do note that anything refunded is a goodwill gesture (the banks won their court case on charges in 2009). So you are wise not to make any allegations of wrong-doing and concentrate on your own difficulties. If you see this as a "fight", you are likely to get nothing.

dunstonh

He is taking responsibility in his part for that but HSBC should take some too they've effectively kept him in debt.

He is an adult. He is responsible for his spending. Not the bank.

Over those years he's asked for loan to consolidate his debts and was rejected and then a week or so later they upped his credit limit on the higher APR products.

Credit cards and bank loans are not handled in the same place. Someone consolidating credit onto loans may well get rejected as the fear is that they will tidy their position up but then go and blow it by spending on the credit card again. So, whilst a branch can control lending arranged by the branch, it cannot control the credit card limits.

. To me this is not responsible lending as they have doing their best to make as much money out of him as possible * yes I know a bank is a business at the end of the day but surely there's an issue with them doing this on more than one occasion over the years.)

It is very rare for any complaint to get far on that argument. Tends to only work where there is mental illness or a serious breakdown by the bank and that doesnt appear to be the case here.

Does anyone have any experience of fighting with HSBC for this and have any advice or can point us in the right direction for what to say or do?

The responsibility issue is a red herring. The focus needs to be on financial hardship as that is one of two areas they are issuing refunds on. However, you have to meet their financial hardship criteria and it has to be current (not historic). Also, the bank doesnt just have refund as the only option. It can suspend future charges and/or interest for a period and it can arrange the debt is placed into a debt management plan. When it does refund charges, it will tend to look at the last 6-12 months. They can go back further but it depends on the level of current financial hardship that the household is suffering. i.e. utility bills going unpaid. Council tax in arrears etc.

You have to paint a picture of hardship to them. They do check. They look at your spending habits. If you are buying sandwiches in M&S for lunchtimes then they will refuse to do anything. Or if there is dining out or paying large amounts to sky tv or whatever. Hardship has to mean hardship.

mazy_m

Thanks for the advice. We will be doing it based on his current financial hardship and if they did freeze any fees that would be beneficial.

I know it might not be best to see it as a fight and that they may have won their case back in 2009 but it doesn't mean that they are in the right. They have kept him in debt and it's ridiculous that they refused him a loan at a good rate but then upped his credit limit days later.

Needless to say once he is able to leave HSBC he shall be transferring to another bank as the service from them has been nothing short of appalling.

mazy_m

It is very rare for any complaint to get far on that arguement. Tends to only work where there is mental illness or a serious breakdown by the bank and that doesnt appear to be the case here.

Thanks we will be doing it based on the financial hardship as this is the truth and it's very clear that on many occasions the fees have taken him over his overdraft.

He does suffer from a mental illness and his debts actually make it worse which is why he needs help from myself to help sort it out. He can't think straight when it comes to debt and debt management and makes decisions which are damaging.
Such as forgetting he had a late payment on 0% card ( that he'd got by building up a good credit rating with help) ultimately he lost the 0% element and then not realising this he transferred a BT from a smaller APR onto this now high APR credit card and it was crippling him.

Thanks all for the advice I will keep the tone you all suggested but I am annoyed with them. I see what you were saying about the loans and credit card being separate but he'd has letters through in his name offering him the loans which is why he applied.



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Nasqueron

mazy_m wrote: »

I know it might not be best to see it as a fight and that they may have won their case back in 2009 but it doesn't mean that they are in the right.

Yes it does, they won the case that confirmed the charges were fair. Banks have subsequently reduced them

mazy_m wrote: »

They have kept him in debt

No they didn't, you said yourself he keeps spending and not paying back on time - he has kept himself in debt.

mazy_m wrote: »

and it's ridiculous that they refused him a loan at a good rate but then upped his credit limit days later.

No it isn't. Banks have a requirement for follow responsible lending guidelines. Given his pattern of spending, giving him a loan to pay off his debts would probably result in him having the loan debt then spending on his credit cards again meaning 2x the debt.

mazy_m wrote: »

Needless to say once he is able to leave HSBC he shall be transferring to another bank as the service from them has been nothing short of appalling.

Every bank will treat him the same if he spends and doesn't pay back on time. He needs to sort his terrible attitude to debt and paying on time or the cycle will continue.

A hardship case that helps him get out of debt is papering over the cracks, sorry to be so harsh but you need to get him to deal with his problems, bailing him out and blaming the bank for his behaviour lets him avoid taking responsibility. He's an adult and needs to reign in his spending and pay his bills on time.

You can look on the Debt forum of this webpage for countless stories of people consolidating debt then coming back in a year or two with the loan debt and all new credit card debt

mazy_m

How are they being responsible when they up his limit by thousands at a time when he is in debt then? I don't see how that can be seen as following responsible lending guidelines. In fact the opposite. I agree if they think he cannot pay back the loan they shouldn't have given it to him but to then up his credit card which was a high APR from £2500 to £5000. This, can never been seen as responsible lending.

dunstonh

How are they being responsible when they up his limit by thousands at a time when he is in debt then?

Did the card provider know that he was in debt? Remember that the card provider is different to the bank. Even if they share the same name/logo. The card provider cannot know unless they are told.

Nasqueron

mazy_m wrote: »

How are they being responsible when they up his limit by thousands at a time when he is in debt then? I don't see how that can be seen as following responsible lending guidelines. In fact the opposite. I agree if they think he cannot pay back the loan they shouldn't have given it to him but to then up his credit card which was a high APR from £2500 to £5000. This, can never been seen as responsible lending.

Did they force him to spend on that card?

mazy_m

Well they were as he asked them to reduce it and then they sent him a letter saying if he wanted to increase it again he would be credit checked. Then they upped it again months later.

dunstonh

mazy_m wrote: »

Well they were as he asked them to reduce it and then they sent him a letter saying if he wanted to increase it again he would be credit checked. Then they upped it again months later.

In that letter, did he state he was in financial difficulties? or did it just ask for a reduction?