HSBC pulled a fast one. What are my options?

maxxpayne

Hello,

Yesterday I decided that it's best that I switch my standard variable rate mortgage on HSBC which went up to 6.2% and I logged into HSBS's website and found that they have a 5 fixed year fixed deal at 5.24%, reducing my mortgage to £956/month. So I made the switch application online.

Later on the same day in the evening, I chanced across an article online that stated that HSBC is going to release new rates from Monday (the next day) - by the time I had read the article, it was late and I didn't see any option online to cancel my switch, which was shown as being in progress.

So today I logged into HSBC and sure enough, there's a new 5.21% rate for the same period, that would cost me £938.48/month, saving me £18/month. While not a game changer could easily cover some other monthly bill like phone/broadband etc.

So I call up HSBC the moment I have some free time from work today at 1:30 PM and I'm told that the rate switch application had gone through and there's nothing they can do.

There's no grace period or cooling off period. Nothing.

I pleaded that they can and are in a position to do something about it, especially given the time frame but customer support didn't budge.

This really feels very harsh. Normally any contract signed online should have some cooling off period but clearly not in this case.

Do I have any option? How do I proceed?

Many thanks.

dunstonh

There's no grace period or cooling off period. Nothing.

Correct.  Its not a new product and doesn't get the benefit of a cooling off period.

This really feels very harsh. Normally any contract signed online should have some cooling off period but clearly not in this case.

People moan when its too slow and they moan when its too fast.    This was always going to fast as its pretty much automated with little human input.

Do I have any option? How do I proceed?

As there is no wrongdoing, despite your incorrect thread title, there is not much you can do.   You can complain that they were too efficient for you maybe?

B0bbyEwing

Wow. Glad I came across this thread. I assumed there'd be a grace period like op.

I secured mine in July/August and had until the 20th of the month before it was due to start in which to cancel. So as it was due to start 1st Oct, I had until 20th Sept to cancel, which I've done. 

So handy to know it's not always this way. Though I did check their cancellation policy before I jumped in. 

MWT

B0bbyEwing said:

So handy to know it's not always this way. Though I did check their cancellation policy before I jumped in. 

It is the difference between locking-in the next fixed product, a few months in advance to start when your current fix ends, which necessarily will include some time to reconsider and pick a new product if one is available, and being on a variable rate and asking them to change to a fixed product, which involves no delay and can be put into effect immediately. 

Exodi

"HSBC pulled a fast one"

In some distant alternate reality:

"A letter from HSBC? It must be confirming switch I did online the other day, let's read it"

"Dear customer,

Regarding your product switch, we regret to inform that after you switched your deal with us, we have decided to increase our rates and as such, have increased your fixed rate, despite our agreement."

Unless it's only fair to go back on the agreement if it goes down, but fixed=fixed if it goes up?

B0bbyEwing said:
I secured mine in July/August and had until the 20th of the month before it was due to start in which to cancel.

Unlike you, the OP is already on the new product, even if it is only by a day. Unfortunately from a laymans perspective 'it's just a day' seems a credible argument but I understand it's much more complicated than that (involving derivative contracts) meaning that the lender is out of pocket more than just the difference in the rate.

JMA74

HSBC allow brokers to cancel future dated product transfers up to a few days before the end of the month before completion. 

With you being on SVR they may have started the product transfer immediately but this would be very unusual.   99% of lenders I can think of start new deals on the 1st of the month following completion.  Completing mid month would be very odd. 

I would call them up and say that you want to cancel and see if you get a different response

MWT

maxxpayne said:

I pleaded that they can and are in a position to do something about it, especially given the time frame but customer support didn't budge.

Can you already see the new rate on your account if you look online?

ACG

The grace period is normally prior to it starting. If it has started, you are tied in. 

I did one last week, it wont kick in until the 1st Jan, the client has until the 20th December to cancel it. But if I did it on the 19th December they would only have a day to cancel it. If It did it on the 20th December, it would not kick in until 1st Feb. 

However every lender is different. 

I dont think HSBC have done anything wrong personally. Had their rates have gone up, you would be happy, you would be unhappy if they tried to get you to change to the new higher rate. Whilst you may think HSBC can do something, sometimes the way the systems are set up prevent it. That does not mean they are in the wrong, it just means that is how they set their process up. 

london21

If the product had not started then think it can be changed.

dunstonh

london21 said:

If the product had not started then think it can be changed.

Correct.  However, the op was on SVR and it was a product transfer, and from their comments, they didn't select a future date but immediate.   

Exodi

While it is commendable that posters are trying to provide optimism to the OP by suggesting the transfer may not have gone through yet:

JMA74 said:

With you being on SVR they may have started the product transfer immediately but this would be very unusual.   99% of lenders I can think of start new deals on the 1st of the month following completion.  Completing mid month would be very odd. 

ACG said:

I did one last week, it wont kick in until the 1st Jan, the client has until the 20th December to cancel it. But if I did it on the 19th December they would only have a day to cancel it. If It did it on the 20th December, it would not kick in until 1st Feb. 

london21 said:

If the product had not started then think it can be changed.

I think it is perhaps ill-placed as the OP has stated that HSBC confirmed the switch had already gone through. It also reads as if were doing an immediate switch from SVR. The above advice is not only counting on there being a void period in an immediate switch from SVR (to say the 1st of the month), but also for HSBC customer service to be completely wrong.

Never say never, but I wouldn't be getting my hopes up.

maxxpayne said:
I call up HSBC the moment I have some free time from work today at 1:30 PM and I'm told that the rate switch application had gone through and there's nothing they can do.