Art H,
My branch said the change in policy was a 'bolt from the blue' up until which time they were not aware of any big problems with the loans.
I think its quite unlikely that people able to complete some amount of training + ATPL exams are somehow unable to service the loans while they wait for jobs.
This might appear a bit cynical but consider the two scenarios, for someone who has invested £30k of their own money - they need another c£20k to finish:
1. PSL, borrow the money, 6months - 1 year later get a flying job, overpay the loan and get it cleared with no early repayment penalty.
2. Personal Loan (which is what they still offered me), borrow the money at 8.9%APR, Whack in £8-9k in loan protection insurance, together with penalties for early payment. Total yield for the Bank = lots for than PSLs.
HSBC has decided it likes option 2 better. I don't believe they have been stung quite so bad. The lady I spoke with said they have had "a couple go bad" .... 2 loans?
When they offered me a PSL two years ago I questioned why the bank would give the loan on such good terms with no early repayment penalty. The sincerely given answer was that the bank saw its customers as people who after training would be looking for mortgages, investment products and other financial services -
I've got what I need from another source, and am about to close down the HSBC account. Others doing likewise would perhaps send the message through that loyalty works both ways.
LF
(Rarr - off to eat a bowl of Pedigree Chum, Yum yum)