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smiffy1967

Advise On My Hsbc Loan

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I have a loan with HSBC and deposit every month £205 into my current account for the standing order for the loan.

Last December I missed a scheduled payment, every month following that the payment was made. HSBC made no attempt to contact me regarding the missing payment and making extra payments to catch up with the missed payment. HSBC kept taking the scheduled monthly payment and I always made sure the £205 was there. On the 28th June I received a letter from HSBC informing me they hade taken around £158 from my account to pay part of a missed payment from December 2008 then on June 30th HSBC took the scheduled payment as well, as there were not enough funds in the account to cover the scheduled payment HSBC returned the standing order and charged me £25. Looks like a simple exercise in money creation in my opinion.

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I have a loan with HSBC and deposit every month £205 into my current account for the standing order for the loan.

Last December I missed a scheduled payment, every month following that the payment was made. HSBC made no attempt to contact me regarding the missing payment and making extra payments to catch up with the missed payment. HSBC kept taking the scheduled monthly payment and I always made sure the £205 was there. On the 28th June I received a letter from HSBC informing me they hade taken around £158 from my account to pay part of a missed payment from December 2008 then on June 30th HSBC took the scheduled payment as well, as there were not enough funds in the account to cover the scheduled payment HSBC returned the standing order and charged me £25. Looks like a simple exercise in money creation in my opinion.

Sounds like a blatant fleecing attempt. I would complain by phone, if they dont immediatly remove the charges or reduce to a nominal sum, then make the complain formal using one of those templates on mse.

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Why didn't you contact them and ask them if they'd like to take the money?

You say "I always made sure the £205 was there."

but then it wasn't...

Edited by SarahBell

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Why didn't you contact them and ask them if they'd like to take the money?

You say "I always made sure the �205 was there."

but then it wasn't...

the only time the payment was not there was in December. Jan they took the payment, Feb, March,April, May, June and then they just went into the account took monies and bounced there own standing order sending the account into arrears and promptly charged me.

Extortion!

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Why didn't you contact them and ask them if they'd like to take the money?

You say "I always made sure the �205 was there."

but then it wasn't...

What is the point of this post? Your story is just sorry reflection on your inability to manage your current account. HSBC blatantly creating money? Errr, nooooo, they fined you £25 for being inept.....

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What is the point of this post? Your story is just sorry reflection on your inability to manage your current account. HSBC blatantly creating money? Errr, nooooo, they fined you £25 for being inept.....

The day we can cross transfer posts between Fora will be a happy one.

One button >>> Whack straight into MSE.

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What is the point of this post? Your story is just sorry reflection on your inability to manage your current account. HSBC blatantly creating money? Errr, nooooo, they fined you £25 for being inept.....

Bit harsh, I thought the govt review of bank charges stated that they had to be proportional to the actual costs to the bank, and in this case £25 seems excessive.

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Bit harsh, I thought the govt review of bank charges stated that they had to be proportional to the actual costs to the bank, and in this case £25 seems excessive.

Might have a claim on that basis, but they should/could have charged him £25 in December for the bounced DD then.

OP should have contacted the bank about the missed payment when it happened and sorted it out. If he had, none of this would have happened.

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Might have a claim on that basis, but they should/could have charged him £25 in December for the bounced DD then.

OP should have contacted the bank about the missed payment when it happened and sorted it out. If he had, none of this would have happened.

I missed a payment by mistake and a week later when I realised I telephoned said sorry my fault. The bank said if you pay now by debit card then there will be no fees charges or change to the loan rate. So I did job done.

Honestly is always the best policy.

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I have a loan with HSBC and deposit every month £205 into my current account for the standing order for the loan.

Good, good - no problem there then ...

Last December I missed a scheduled payment

Uh-oh, the plan comes crashing down ...

Every month following that the payment was made. HSBC made no attempt to contact me regarding the missing payment and making extra payments to catch up with the missed payment.

And you thought you'd keep quiet too ..? :blink:

HSBC kept taking the scheduled monthly payment and I always made sure the £205 was there. On the 28th June I received a letter from HSBC informing me they hade taken around £158 from my account to pay part of a missed payment from December 2008 then on June 30th HSBC took the scheduled payment as well, as there were not enough funds in the account to cover the scheduled payment HSBC returned the standing order and charged me £25. Looks like a simple exercise in money creation in my opinion.

I'm not sure exactly what you expected to happen, Smiffy? It was just a matter of time when you failed to contact them, wasn't it?

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Bit harsh, I thought the govt review of bank charges stated that they had to be proportional to the actual costs to the bank, and in this case £25 seems excessive.

Heh heh, true, am sure that £25 is more than it costs.....

.....but...........

The banks would argue that I get free banking (I never go over my account limits) because it is paid for by people like Smiffy who cannot manage their finances........

......hmmmm

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Good, good - no problem there then ...

Uh-oh, the plan comes crashing down ...

And you thought you'd keep quiet too ..? :blink:

I'm not sure exactly what you expected to happen, Smiffy? It was just a matter of time when you failed to contact them, wasn't it?

very patronizing. It's not a perfect world is it?

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very patronizing. It's not a perfect world is it?

well - you won't be doing that again anyway will you

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If you run your current account that close to 0 then why not get an overdraft for situations like this? As you say it was an error you spotted fairly quickly. Wouldn't it be better to have been hit with a few days interest charge (which would be insignificant even if the O/D rate was 20%) than risk missing the payment?

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I have a loan with HSBC and deposit every month £205 into my current account for the standing order for the loan.

Last December I missed a scheduled payment, every month following that the payment was made. HSBC made no attempt to contact me regarding the missing payment and making extra payments to catch up with the missed payment. HSBC kept taking the scheduled monthly payment and I always made sure the £205 was there. On the 28th June I received a letter from HSBC informing me they hade taken around £158 from my account to pay part of a missed payment from December 2008 then on June 30th HSBC took the scheduled payment as well, as there were not enough funds in the account to cover the scheduled payment HSBC returned the standing order and charged me £25. Looks like a simple exercise in money creation in my opinion.

Trying to understand this....... Sounds like you were paying down the loan down off your own back as well (i.e. using the standing order) together with the scheduled payment to get the loan paid off quicker. December, what was missed? A scheduled payment (taken by the loan provider) or your standing order for £205?

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well - you won't be doing that again anyway will you

Do we really understand what went on? See my post above. I don't even think Smiffy think's he's been ripped off if he missed the payment....or I may be wrong?

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Guest eight
I have a loan with HSBC and deposit every month £205 into my current account for the standing order for the loan.

Last December I missed a scheduled payment, every month following that the payment was made. HSBC made no attempt to contact me regarding the missing payment and making extra payments to catch up with the missed payment. HSBC kept taking the scheduled monthly payment and I always made sure the £205 was there. On the 28th June I received a letter from HSBC informing me they hade taken around £158 from my account to pay part of a missed payment from December 2008 then on June 30th HSBC took the scheduled payment as well, as there were not enough funds in the account to cover the scheduled payment HSBC returned the standing order and charged me £25. Looks like a simple exercise in money creation in my opinion.

Spooky. We also have a loan with HSBC. They took the payment 1st of this month, then credited it back as there wasn't enough in the account to cover it. I did know there wasn't enough in the account (it is only being kept open until this loan finishes in November), I went down on the afternoon and put some cash in, not knowing that the payment had already "bounced".

The thing is, I know from experience that HSBC until recently only used to "tally up" transactions at the day's end. Now it seems that they're doing them in order. When this changed I don't know, but it does seem a bit desperate/"creative".

They still haven't taken this month's payment, despite the cash having been sat there since the afternoon of the 1st, and I haven't heard from them. If they think they're going to charge me £25 for this they can whistle for it. Likewise if they think I'm going to contact them. The account was already being closed for a reason....

eight

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Do we really understand what went on? See my post above. I don't even think Smiffy think's he's been ripped off if he missed the payment....or I may be wrong?

if THEY forget to take a DD then that's their fault, unless he cancelled the DD.

If Smiffy failed to make a standing order payment then that's his.

important to clarify between SOs and DDs.

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Don't fret - it was warranted.

why was it? i missed a payment due to illness, i explained to HSBC that i was off work and no income because of it, 6 months later days before a sheduled payment was supposed to go out they take decembers loan payment putting me in a position 3 days later of not having enough money in the account to cover June scheduled payment and charging me £25

Blatant profiteering!

NO excuse - these Banks are out of control.

If HSBC had not expanded globally a few years ago i have no doubts they would be 75% owned by the tax payer!

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why was it? i missed a payment due to illness.

Ah, you didn't mention that in your OP.

I explained to HSBC that i was off work and no income because of it.

Nor that.

6 months later days before a sheduled payment was supposed to go out they take decembers loan payment putting me in a position 3 days later of not having enough money in the account to cover June scheduled payment and charging me £25. Blatant profiteering!

Ah well if you did indeed speak to them & they gave you no indication that they would retrieve payment at a later random date then I see where you're coming from.

Banksters!

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Ah, you didn't mention that in your OP.

Nor that.

Ah well if you did indeed speak to them & they gave you no indication that they would retrieve payment at a later random date then I see where you're coming from.

Banksters!

That is what exactly happened, Thanks

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Spooky. We also have a loan with HSBC. They took the payment 1st of this month, then credited it back as there wasn't enough in the account to cover it. I did know there wasn't enough in the account (it is only being kept open until this loan finishes in November), I went down on the afternoon and put some cash in, not knowing that the payment had already "bounced".

The thing is, I know from experience that HSBC until recently only used to "tally up" transactions at the day's end. Now it seems that they're doing them in order. When this changed I don't know, but it does seem a bit desperate/"creative".

They still haven't taken this month's payment, despite the cash having been sat there since the afternoon of the 1st, and I haven't heard from them. If they think they're going to charge me £25 for this they can whistle for it. Likewise if they think I'm going to contact them. The account was already being closed for a reason....

eight

if the payment was due out same day as you added cash, and it had to be cash, not a check or Debit card, then the end of day balance would have been OK.

they dont do them in order of the day, its the balance at the end that counts.

call them and complain. In the case of a claim against charges and now a bad credit status, your non contact is a tick against you. its a pain, but you should get this corrected ASAP.

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Guest eight
if the payment was due out same day as you added cash, and it had to be cash, not a check or Debit card, then the end of day balance would have been OK.

they dont do them in order of the day, its the balance at the end that counts.

call them and complain. In the case of a claim against charges and now a bad credit status, your non contact is a tick against you. its a pain, but you should get this corrected ASAP.

That's what I thought. It was cash, I made a three mile round trip on foot on the hottest day of the year especially to deposit it. Checked Internet banking a few days later and the transactions clearly show debit of loan instalment, reversal of loan instalment and then my credit, in that order.

Now I'm reasonably confident that HSBC aren't short of a few quid, but that's how behaviour like this makes it look. Sneaky and desperate. To quote my mother, "I wouldn't trust them with the lodging house cat."

Incidentally the reason we are closing the account is that they changed our current account to a "premium" ie. charging one without our authorisation, which they continued to swear blind we had given even when they couldn't come up with any evidence to prove it. Being in the room with them on these ocassions was pathetic and embarassing; like watching a chocolate smeared child trying to convince you that it wasn't them who ate your biscuits.

eight

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