Mis-sold credit card

Sidders66

Hi, I’m new here! Any help from financial advisers would be greatly appreciated ☺️

Recently did a balance transfer onto a new credit card with HSBC. 0% interest for 25 months. Received my new card but before I made the balance transfer from my old credit card, I asked the customer adviser to confirm that the minimum repayment every month would only be 1% of the balance as I wouldn’t be able to afford anything above that. She confirmed it would be and I went ahead with the transfer. 

Received my first statement and it’s 2.5% of the balance. Called them and adviser assured me it was 1% plus the balance transfer fee in the first month and then only 1% going forward. Didn’t quite trust this so I looked at their more detailed T&Cs and looked like it was 2.5% every month. Called them AGAIN and was told yes, it is 2.5% unfortunately.

I’ve complained and they’ve admitted blame in terms of giving wrong info over the phone twice and offered £100. If I decline the £100 and take it to the Ombudsman, what would be the likely outcome? 

I just want the product I expected. 

Thanks in advance.

Emmia

I'm not sure why you didn't consult the detailed T&Cs before doing the transfer if the 1% is really critical to you - however it is a pity that the agents couldn't have given you the right information when you called.

There's some more info here: 
https://www.moneysavingexpert.com/credit-cards/minimum-repayments-credit-card/

born_again

Sidders66 said:

Hi, I’m new here! Any help from financial advisers would be greatly appreciated ☺️

Recently did a balance transfer onto a new credit card with HSBC. 0% interest for 25 months. Received my new card but before I made the balance transfer from my old credit card, I asked the customer adviser to confirm that the minimum repayment every month would only be 1% of the balance as I wouldn’t be able to afford anything above that. She confirmed it would be and I went ahead with the transfer. 

Received my first statement and it’s 2.5% of the balance. Called them and adviser assured me it was 1% plus the balance transfer fee in the first month and then only 1% going forward. Didn’t quite trust this so I looked at their more detailed T&Cs and looked like it was 2.5% every month. Called them AGAIN and was told yes, it is 2.5% unfortunately.

I’ve complained and they’ve admitted blame in terms of giving wrong info over the phone twice and offered £100. If I decline the £100 and take it to the Ombudsman, what would be the likely outcome? 

I just want the product I expected. 

Thanks in advance.

A long wait & could well be nothing more than the £100.
HSBC won't give you that 1%. 

Would be surprised if any CC offers 1% min payment. Especially in light of the current persistent debt regulations. 
How much of a balance were you looking to transfer?

Sidders66

born_again said:

Sidders66 said:

Hi, I’m new here! Any help from financial advisers would be greatly appreciated ☺️

Recently did a balance transfer onto a new credit card with HSBC. 0% interest for 25 months. Received my new card but before I made the balance transfer from my old credit card, I asked the customer adviser to confirm that the minimum repayment every month would only be 1% of the balance as I wouldn’t be able to afford anything above that. She confirmed it would be and I went ahead with the transfer. 

Received my first statement and it’s 2.5% of the balance. Called them and adviser assured me it was 1% plus the balance transfer fee in the first month and then only 1% going forward. Didn’t quite trust this so I looked at their more detailed T&Cs and looked like it was 2.5% every month. Called them AGAIN and was told yes, it is 2.5% unfortunately.

I’ve complained and they’ve admitted blame in terms of giving wrong info over the phone twice and offered £100. If I decline the £100 and take it to the Ombudsman, what would be the likely outcome? 

I just want the product I expected. 

Thanks in advance.

A long wait & could well be nothing more than the £100.
HSBC won't give you that 1%. 

Would be surprised if any CC offers 1% min payment. Especially in light of the current persistent debt regulations. 
How much of a balance were you looking to transfer?

I transferred £2000. I’ve only ever paid 1% minimum repayment, never above that. However, I set up a direct debit to cover more than the minimum every month and never pay interest on a credit card - I transfer before the 0% runs out. 

jonesMUFCforever

This is what the website says
If you entered into your agreement with us from 23 March 2011 onwards, the minimum payment will be the higher of: A. The sum of (a) interest for the period from the last statement, (b) any default charges, and (c) 1% of the full amount you owe as shown on your monthly statement (not including interest and charges) B. 2.5% of the full amount you owe us as shown on your monthly statement (including interest and charges.

I have read it more than once and can't fathom it to be honest.
I think if you pay interest you pay the monthly interest charge plus 1% but if you are on a promotional interest free card you pay 2.5% of amount owed - is that how everybody else sees it?

Sidders66

jonesMUFCforever said:

This is what the website says
If you entered into your agreement with us from 23 March 2011 onwards, the minimum payment will be the higher of: A. The sum of (a) interest for the period from the last statement, (b) any default charges, and (c) 1% of the full amount you owe as shown on your monthly statement (not including interest and charges) B. 2.5% of the full amount you owe us as shown on your monthly statement (including interest and charges.

I have read it more than once and can't fathom it to be honest.
I think if you pay interest you pay the monthly interest charge plus 1% but if you are on a promotional interest free card you pay 2.5% of amount owed - is that how everybody else sees it?

Yes, you are quite right and HSBC have since clarified that too. However, the ambiguity of this is what led to a telephone call to them in the first instance. Unfortunately, I spoke to two advisers who didn’t understand it either 🙈

bradders1983

You cant afford an extra £25 or so a month? At least the compo covers you for four months.

As said nowhere will be offering payments of 1% of balance. How much were you paying on it on the old card?

Fighter1986

I've got to he honest those T&C are a bit ambiguous. I'd be fascinated to see what a formal complaint yields.

Remember when formatting a complaint you need to break it down into three sections:

1. What your complaint is about

2. What you've done so far to attempt resolving the situation 

3. What you expect the other party to do in full and final settlement of your complaint.


Think carefully about what you want before submitting it. Good luck ☺️

D3xt3r5L4b

Take the £100 and learn to read T’s and C’s before signing them. 

Sidders66

bradders1983 said:

You cant afford an extra £25 or so a month? At least the compo covers you for four months.

As said nowhere will be offering payments of 1% of balance. How much were you paying on it on the old card?

I have one credit card with MBNA (paying 1% of the balance) and the credit card I transferred from in this case was Halifax. Again, that was 1%. I’ve never paid above this. 

And the £100 wouldn’t quite cover two months payments given the repayment rate is 2.5%??

Sidders66

D3xt3r5L4b said:

Take the £100 and learn to read T’s and C’s before signing them. 

T’s and C’s were ambiguous at best and I asked two advisers to clarify these. Neither of them were able to. Says a great deal when two representatives from the company don’t understand the literature.