irresponsible lending by HSBC (?)

[b-who]

Hiya

 

I was wondering if anyone can advise me on what I can do about HSBC and irresponsible lending.

 

 

I’m going to keep it as short as possible and am happy to give more information

but no point hurting your eyes any more reading my thread than needed

 

In 2007 I got a personal bank loan

couple of years later the media started talking about banks doing wrong and there being a court case about if / what they done wrong.

 

 

I started researching about my bank loan and felt it was mis sold.

Applied to bank then escalated to FOS for PPI refund and this, in the end, was given back 'as a gesture of good will'.

 

 

Then tried to apply again to FOS about irresponsible lending.

Esp. where the manager had to over ride the system in order for me to get the bank loan.

 

Asked for correspondence/notes/information (internal and external) from FOS and Bank when all was happening.

On the FOS own internal notes it states that HSBC haven’t got a contact for my loan

 

 

Alarm bells rung and I stated that without a contact (esp. pre April 2007) there was no loan!

 

 

On HSBC own internal paperwork it has there own employee saying it would have gone over SLA timing.

Another note said that there had been a restriction on my account up until the day we'd asked for the contact.

 

FOS did not agree the bank loan was mis sold.

In fact they said I had lied in order to get the loan.

 

 

Truth was it was there OWN employee who suggested I add my boyfriends (who was with me when applying) income in the section of ‘OTHER GUARANTEED INCOME’

and again with there own paperwork the asterix by it states that any information put in that box would need to be verified.

 

Within my paperwork my credit rating was classed as an A2. When we asked HSBC what this meant they stated -

 

(Quote) The system grades lending requests - in the cases of A1 this would mean an outright acceptance with no further decision making necessary

. For example, someone with an excellent credit rating requesting to lend a small amount of money. Likewise, a R1 would be an outright reject.

 

The A2 in this case means that the system accepts on the condition that the branch also accepts on the condition that the branch also accepts

- it not a 100% computer generated decision but dependent on review and acceptance by branch (End quote)

 

So it states the bank would have to say 'yes this person is able to have the money they can pay us back'.

 

Again I stated to FOS that due to the bank not being able to produce the contract that would make it void they again didn’t agree.

 

Another thing that buggered me big time with HSBC (ever so slightly separate but equally need advice) is in 2010 stated to them I was in financial hardship.

They put the loan in 'parking' (hold payments / not add interest as in financial trouble)

 

 

yet 2 months later they started their weird process of taking 1 and half month money then normal payment then 3/4 of a month payment etc.

In a space of 30 days they took 3 payments totalling - £835.05!!!

For a part time working, single mother of a young lad with wages of £550 odd per month that’s more than my month wages!!

 

 

Then came in the bank charges (the circle of being charged for being charged...sometimes hundreds of pounds!)

no matter WHAT I said I was always in the wrong from there point of view.

 

I am more than happy to go in to more detail about anything needed but any kind of advice would be brilliant.

I don’t know if Id be able to go down a legal process to get them.

I have read through the whole CCA 1974 and feel that by there own rules they have been irresponsible for there actions.

 

For me now it’s a principal thing. Don’t get me wrong Id LOVE the money back but for the last 5 years it’s been about my credit rating

. They have totally buggered it up! I feel I am right in what I have found but to be told no your wrong by the FOS is a confidence hitter.

 

Ok so I’ve waffled on here....repeated my self I’m sure...just hope that I have made (some) sense.

 

Thank you in advance for any help!

[citizenB]

Just because they cannot produce the agreement, this doesn't make it void.

 

They are allowed to reconstruct the agreement from information they hold. It does however have to be a truthful reconstruction. In theory, they should not be able to obtain a judgment against you without the correct paperwork (if they were considering taking legal action to recover monies).

 

It would appear you have already sent a Subject Access Request as you refer to the banks notes etc. Was your Boyfriend's name added to the loan, or just his income ?

[b-who]

Thanks for replying!

 

With the contract it is because of the FOS internal note states – (quote) 7 April 2010 HSBC do not have a credit agreement on file. (end quote) That where I question the right to uphold the loan. Yep done all the Subject access requests that’s how we (my mother was helping me) were able to get all the information. The loan went to DCA and is now a CCJ (yes I know well done me *hangs head in shame*) All the bank would send is an application record. Is this where you are saying they can reconstruct the agreement (?)

 

With the boy friend it was JUST his income that was taken in to account. We were not living together, not sharing any form of income, not engaged or married. The only time that information about him was taken was on there own budgeting sheet form and was only put in the section of ‘other guarteed income’ In 2010 I asked a HSBC employee via there online chat what there banking ‘rules’ were for this she stated -

 

(quote) Guaranteed income is any funds coming in to you or your household that is not reliant on other parties where thier input is out of your control. For example rental of a property is not guaranteed as the tenant may leave and you would then have to find a new tenant. Child benefit is guarteeded until your child reaches a certian age. Bonus payments are not guaranteed as you may not always get one. Child tax credit is guaranteed for a specific period usally... are you getting the idea of what I am trying to explain? (end quote)

 

We tried to explain to the FOS that at the time I was refused the loan due to me being the moron I was (maybe still am) but because the employee suggested his income WAS taken in to account (manager had to come in to the room to allow the loan to be processed) that was the only reason it was granted.

 

My credit rating not only was a A2 but also 52. Both those points were written on the application record this is why we knew this.

 

I don’t know if I have answered your question or made it more confusing. Im very sorry if ive confused you more:sad:

[citizenB]

IMHO, if they insisted that you put his income down on your Income sheet as though he was living with you (when he wasn't) , then I think you might have a good argument that they did something wrong.

 

How exactly did the situation of your having an employed boyfriend come up in the conversation with the Bank ?

 

 

 

FOS did not agree the bank loan was mis sold.

In fact they said I had lied in order to get the loan.

 

On what basis did the FOS make this decision ?

 

Was the decision made by a first tier adjudicator or did you ask for an escalation to an Ombudsman proper ?

[b-who]

When applying for the loan my boyfriend was with me in the room at the branch. When applying for it the computer generated a ‘no’ to me. It was the employee who then suggested that the partner’s income would be added. They had written on the budgeting sheet ‘partners income’ then crossed it out when we pointed out that we wasn’t living together nor married so couldn’t be a joint application. That’s when they put his wages in the ‘other guaranteed income’ bracket. No signature, no paperwork to back up what he was saying it was a ‘we take his word for it his earning that amount’

 

Yes we asked for it to be escalated as much as possible but still got the same response. Checking my email / correspondence / notes the issues we had with the FOS were –

 

When taking my income and expenditures in to account they were saying I was in a position to be able to repay the loan. But the bank statements / information they were referring to were the ones AFTER the loan was taken out not the months previous to show them how much of a moron I was. Also just seeing so jogged my memory that when we were claiming the mis selling of PPI the FOS adjudicator on the case stated on the phone that on HSBC information that the boyfriends income WAS taken in to account on there system yet when stating this to the FOS for the mis selling / irresponsible lending of the loan they then retracted and said that was because it was on the budgeting sheet.

 

It felt with the FOS that the person dealing with the case that, if money was owed or someone was wrong, he’d have to pay out of his OWN pocket and take the blame.

 

I said the whole time I take TOTAL responsibility for walking in and applying all I ask is the bank acknowledges they also were in the wrong for letting me have it!

[b-who]

Please tell me to shut up and stop telling Lewis Hamilton how to drive (remember moron typing here haha) but as I said in my first post I went though the whole CCA 1974 and these were the regulations I felt they had broken –

 

Consumer credit act 1974 chapter 39

 

Section 55B (1) (2) (3)

 

Section 55C (3) [not 100% on this]

 

Section 61A (1) (5)

 

Section 110 (1) (3)

 

Section 127 (1)

 

Section 140A (1) (b) ©

 

Again please feel free to tell me to hush!

[b-who]

Hiya sorry to be a pest......but is there any hope this??

[citizenB]

IMHO, no, I don't think you are going to succeed with this.

[Old Cogger]

Ditto

[b-who]

Ill leave it then. Thanks for responding and all advice!

[SabreSheep]

"Then came in the bank charges (the circle of being charged for being charged...sometimes hundreds of pounds!)

no matter WHAT I said I was always in the wrong from there point of view."

 

This area might be worth exploring though.

 

BCOBS

[Lucky7even]

I am in the same position as you but my issues are with Halifax.

 

They gave me credit card and loan, and I am nearly £10K in debt.

 

I heavily quoted the lending code to the FOS who did not respond to this in their final reply, nor did they respond when I showed them Halifax's lending criteria.

 

The FOS are a joke because they always side with the banks.