HSBC professional studies loans advice pls fellow debtors?

[SefonSA]

Hi Ppruners

Sorry wrong area but right people, sure some of you guys got this loan too.

Long story so I will try to keep it short, borrowed 70k told I could repay 12months after finish course, finished late, went to HSBC to confirm new repayment dates. They initailly said impossible, now they want me to go in again and sign for the whole loan again and parents to resign all the guarantees again and only charge me the registry fees!!! very kind of them.

3 things it could be?

1 they want to be able to tell the govt, they are lending more money, ie another loan.

2. They have lost my paperwork (I had to send in copies of the original loan), I think I was the very last person to get that type of loan, all the original branch staff have left and its been moved into another office.

3. There was a major :mad: with the small print of the original loan and they want to sort it out.

Obviously the third option would be my favourite - possibly invalidate loan = clear part of the debt :)

Any advice/thoughts folks....

(apart from the obvious don't borrow money for training!)

[Pilot Chris]

I know that some people who managed to get their repayments deferred basically re-signed to a new loan, with a new deferred payment start date, don't think anyone had to pay any fees though...

[L'aviateur]

Or Option 4, you are changing the terms, so hence renegotiating your contract requiring you to sign a new agreement?

[flyingguy1984]

Part of what you said is standard, I have a loan, although not as substantial as yours. I simply called them up, if you PM me I can give you the number as ringing the telephone banking in India is useless and they will have no idea about it. They have deferred mine for 6 months, all I had to do was sign a new agreement and send it back. I didn't have to pay anything. The reason they have to setup a new loan is because your total figure will change, along with the cost of the interest and monthly repayments. However I can't say whether or not it would be the same for you, as it will depend on how the loan is secured and the terms under which it was taken out.

[2 Whites 2 Reds]

SefsonSA....

Hello mate, I've got the same loan as you etc.

I got the deferrment back in March and had to sign a new loan agreement but didn't have to pay any fee's. 2 weeks to go til my repayments start..... :uhoh:

BEWARE....

HSBC "accidentally" changed the interest rate from 2% above base rate to 2.5% in the new agreement. I called them up and this was quickly sorted. Just make sure you read the new agreement. Don't for chirst sake assume it's the same as your old one with some new figures on the borrowing. I gave them the benefit of the doubt and hope it was an accident rather than some enterprising arse at HSBC. 0.5% doesn't sound very much but work it out over the life of the loan and you could buy an MCC and JOC with the difference it would have made to me! Your level of borrowing is 15k more than mine so it would affect you even more! :eek:

2W2R :ok:

[2 Whites 2 Reds]

Nice thought but having shelled out 70k I doubt that will stand up.... But I'm no lawyer so could very well be wrong.

I've heard rumours from friends that are lawyers that the whole thing about taking secuirty over a parents house isn't quite enforceable either. But I'm not in any hurry to find out!

[Prophead]

If they cannot provide a copy of the agreement or it does not contain certain information then it MAY be unenforceable. This means they are not allowed to ask for money, it does NOT mean the loan just goes away.

To get it enforced would require court action and whilst banks may not be willing to do this for a couple of grand on an old credit card, I would bet they would for £70k.

Forget trying anything like this as it sounds like you need to keep a good relationship with your bank.

[Grass strip basher]

It's 70G it's worth a try. Speak to citizens advice or a debt charity, solicitor before signing anything again.

No it isn't, you borrowed the money so you should now try you upmost to pay it back. You are the one asking to renegotiate the terms of the loan and kindly the bank has agreed to do so. I believe you will find it is called "taking responsibility for your own actions". Something that may serve you well in your furture career but is sadly lacking in many young people today :ugh:

[SefonSA]

Hi folks

Thanks for your responses.

I JUST WANT TO MAKE ONE THING CLEAR - I am not trying to get off scot free.

I realise I am very lucky to of been able to do my training with their support but they have been messing me around ever since I signed the papers and if I could clear "part of my debt" ie the bank charges and the interest over 10 years that I would not have a moral problem with.

With regards to L'Aviteur the 4th option is what they claim but in their offering letter to me it states 12 months after course completion and at several discussions in the branch I was told the dates were provisional.

They have also told me this new loan will be better for my parents as the liability is limited, not unlimited like the previous agreement, Very kind of them!!! But this also makes me think they made a mistake.

I want to maintain a good relationship with them but they want extra registry fees and I will need to pay for my parents solicitors again thus I feel they are breaking our original agreement.

CAB cant help the case is to complex, I will be meeting an accountant next week hopefully he will be able to help/put me in touch with a finance specialist solicitor.

Really appreciate your constructive advice too...

Fly safe

S

[copywrite33]

It is posts/attitudes like this that really get my back up...

You took the loan out to do something and now you are trying to get out of repaying. Its attitudes like that, that have stopped the banks from doing these loans and making it harder for honest people to get loans.

So on behalf of everyone who is trying to be a pilot and struggling to get finance...THANK YOU :ugh: (sarcasm)

[SpreadEagle]

It is posts/attitudes like this that really get my back up...
Maybe you should put you back, back down again?

You took the loan out to do something and now you are trying to get out of repaying. Its attitudes like that, that have stopped the banks from doing these loans and making it harder for honest people to get loans.
The OP has not suggested he wants to get out of paying, but that he wants advice on restructuring his debt. This is not unreasonable as he will have monthly repayments in the order of £850/m and no job to pay them with.

So on behalf of everyone who is trying to be a pilot and struggling to get finance...THANK YOU (sarcasm)
The banks have not stopped lending, because people are trying to default on their HSBC loans. They are under the gun for irresponsible lending. Lending to you right now, would be irresponsible. Scour the internet. Have a look for a job that asks for 200 hours and an fATPL. There aren't any. You need at least a TR. So are they then supposed to lend you and everyone else another £20,000? Airlines would only move the goal posts and ask for + 500 hours in response to the new surge of qualified pilots. Then people would be asking for hour building loans. It wouldn't ever stop.

I can understand your being frustrated at not be able to follow your dream, but right now it is still a dream. You haven't borrowed anything. For these guys, its fast becoming a nightmare. :eek:

Better the land of Make-believe, than Never-never land. :uhoh:

[copywrite33]

My posy was aimed at 'k7nrw' not the OP, my apologies if it seemed that way, also if you look at the timings of my post and the OPs post they were a minute apart which means i never saw his latest post.

[mcgoo]

This is not unreasonable as he will have monthly repayments in the order of £850/m and no job to pay them with.


Isn't the idea that you make sure you can make the repayments before you take out the loan?

[2 Whites 2 Reds]

One-Eyed Pilot....

Aha HSBC tried the old small print interest rate trick on you too ay....:=

Glad you spotted it aswel. Would have been a nasty shock if you signed it and found out afterwards.

Look....to the naysayers on here....this thread isn't a political soap box for anyone to jump on us that have this loan. Don't forget that when the last of these loans were being agreed (mine being one of the very last few) it was in the first half of 2007 when no-one could have predicted it being this bad. No-one on here is trying to get out of paying the loan....just a discussion on the deferrments etc that have been available. And HSBC trying to do someone for a load of fee's all over again when others (me included) haven't had to pay an extra penny for the new agreement is somewhat naughty.

My repayments start in a week's time....so the last thing I/we need is a lecture from others on meeting financial obligations. I'm working 2 jobs 6 days a week to make sure HSBC get their money so on the off chance that anyone is considering trying to bail out of their committments......don't. My parents and I went into this fully aware of the risks and what would be required if the **** hit the fan. Sadly there is currently poo everywhere so the upshot of that is working my arse off to make sure my parents never ever feel the impact of my actions.

Rant over.

2W2R :ok:

[getoffmycloud]

K7NRW it would appear you are not the one to be lecturing people on morals!!
A bit of a re-swing of your moral compass might be in order?

Best to keep on good terms with the bank if at all possible, especially if you have secured the loan on your parents house don't you think? :bored:

[copywrite33]

Please don't get me wrong, im not on a political soapbox and im not having a go at anyone that has the loan.

I read an article a whole back (for the life of me can not find it now) with a head of HSBC who said the reason they stopped doing the loans was because of the amount of bad debt/struggling debtors and the pressure from the government to stop this happening. SO following that logic k7nrw's post of "try and get out of it" is exactly why these loans are not available to me/anyone else wishing to pursue a loan.

2 Whites 2 Reds I am glad you and your parents went into the situation with your heads screwed on and i wish you (and everyone else in this situation) the very best of luck with your future repayments. I'm sure it must be hard at the moment but when the industry turns around and you land your first job it will all be worth while and have made you a better person.

Again my apologies if it sounded like I was trying to lecture or bash anyone, just putting my point out against certain individuals.

@k7nrw - Isn't the whole point of a forum for everyone to put there beliefs/morals/ideas out to the rest of the users?

[2 Whites 2 Reds]

CW33.....

Cheers for the encouragement. It really is tough going at the mo and to be honest it's hard to see the light at the end of the tunnel....especially when I'm knackered from working all the hours god sends. But....I know damn well that I'll appreciate it that much more when it does finally happen.

Clinging onto the age old thought..... All good things come to those who wait!!! (and work their bloody arse off!!!) :)

Cheers

2W2R

[dwshimoda]

I hope you never grace a flightdeck I am in. Your morals stink and do you no credit. You are supposed to be entering a profession where judgment is everything. Your lack of morals shows a distinct lack of most things required in the modern FD.

The likes of 2W2R and the OP show how far out you are.

[student88]

What are you actually trying to find out from this thread?

If I was you I'd read the new contract, check it very carefully, sign it under the originally agreed terms and carry on with your life as normal. Anyone agree with me? :confused:

[2 Whites 2 Reds]

S88 is right. Read the new agreement very carefully, make sure there's nothing to come and bite you later down the road and get on with it.

Going back to the original question regarding set up fee's on the new agreement....contest this on the grounds that clearly not everyone is being asked to pay them. However, everyones relationship with the bank and personal circumstances are private so deal with it as you see fit.

Just to re-iterate my earlier remark. Anyone thinking of trying to bail out of their agreement needs their head read. HSBC will farm the debt out to an agency quicker than you can blink. Not very nice for your parents to have nasty debt collectors on their back for YOUR debt is it. := Thats not aimed at anyone in particular, but rather a sweeping statement to those reading this with a mountain of debt and a lack of balls!

Have a good week all.

2W2R :ok:

[timzsta]

I wonder how many of you took out Payment Protection Insurance with it.......lets see if anybody contacts me.....

[Gbengusa]

Sefson SA

Hello.

Just to add my humble advise, I took out a professional studies loan from HSBC back in 2004 for just under 50k. Like you I had to defer my repayments and had an absolute nightmare trying to arrange this as everytime I would go into HSBC there was no one who knew anything about the loan due to high turnover of staff and the fact that they no longer do this type of loan.

Because the repayments will be delayed your whole loan will have to be restuctured because the final amount you will be repaying and the repayment period has changed due to a longer repayment holiday. As a result the bank will have to re-structure the loan and create new paperwork. That was my experience.

My experience with HSBC wasn't great when it came to dealing with the loan as no one in my branch really seemed to have a clue BUT there is no way out of trying to repay it. So dont even waste your time and energy trying to look for loop holes. I'm sure you'll find plenty but HSBC simply will not roll over and allow the loan to go like that. (to be honest I thought the same thing at the time!)

What I would advise is try and build up a good relationship with your personal banker or the person that arranges your loan and they can waive certain bank fees and charges and could even credit your account for any inconvenience you may have experienced.

You should be able to review the loan once a year when you sit down with the bank and go over the loan (interest and repayments). My understanding is if you want to make changes at the annual review then you wont have any bank charges but at any other time you probably will, but again a good relationship with you personal banker really is the key.

If you like you can PM me and I'll be happy to help in any way I can. I know the repayments are quite daunting and can seem overwhelming but hang in there and keep you head up. After a lot of frustration and disappointment I now have a job flying the 737NG and have been repaying my loan for over 3 years. Dont give up.

[2 Whites 2 Reds]

timzsta....

Generally PPI will only pay out IF you've been employed full time on a permanent contract for atleast 6 months. Personally I opted not to take out a PPI policy due to A) the added expense and B) I knew I could meet the repayments when I finished anyway, albeit having to work harder than I anticipated (which is the whole point of doing a detailed business plan along with the initial loan application).

Had I known at the time of my application things were going to be as bad as they are then I probably would have swallowed the expense and gone for it. But heinsight is a wonderful thing and in a strange sort of way the HSBC repayment monster is a sometimes well needed kick up the arse to keep plugging away, especially when things seem hopeless.

2W2R :ok:

[timzsta]

If you have PPI on a loan you may well have been miss-sold it and you if so you might be entitled to compensation......

[hollingworthp]

Don't forget also if you have had a fall or trip anywhere ... call Injury Lawers 4 U (after all, its a victimless claim right ....)

[timzsta]

I can get you the compensation.........PM.........

[LH2]

PFJI, but...

I hope you never grace a flightdeck I am in. Your morals stink and do you no credit. You are supposed to be entering a profession where judgment is everything. Your lack of morals shows a distinct lack of most things required in the modern FD.

The likes of 2W2R and the OP show how far out you are.

Nice rant, but unfortunately unjustified. Just because other people's moral judgements are different than yours does not automatically make them wrong.

This is especially so when these people are out there trying to help: e.g., by teaching the bank not to be so stupid with their lending policies. If more people would have more or less selflessly ran away with the bank's money in the preceding years, surely they would have been more careful in their lending and the 2007 crisis would not have happened. See my logic there? :E

[Grass strip basher]

k7nrw.... you are hysterical.... you truely are a Sky God.... :ok::O
I like the bit about giving the money to charity... oops too late... it went to an FTO instead!!

[James00]

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[HidekiTojo]

Depends who you fly for, BA mainline that's got to be worth at least 17%... Flybe mmmm 5%? FR...nothing??

[goaround737]

Has anyone else had trouble deferring their 1st loan payments with HSBC? ive submitted the request along with a letter from my training providers stating that my course was delayed etc but HSBC have responded saying that they will not defer??

The staff at HSBC seemed to allude to the fact that other borrowers were being allowed to defer payment due to some extra paperwork they were in receipt of????

[2 Whites 2 Reds]

Last time I spoke to an HSBC PSL advisor they were very quick to inform me that I was extremely lucky to have had the deferment as they are no longer offered whatsoever.....

I seem to have a knack for getting things at the last minute.....

[SefonSA]

Sorry for not writing back everyone but wasnt sure if any of it could be used against me.

Finally HSBC agreed to move back the dates back to one year after completion (what I had originally signed up for!) It took several letters & many phone calls after they spoke with their solicitors they agreed it could be done automatically.

WARNING DONT TRUST ANY BANK

I was only covered as I had a copy of the branch letter that they denied and I cant believe they tried to increase other peoples loan rates by .5% not just once but twice is fraudulent.

Hope this thread has helped fellow cadets past & future. And it covers any future HSBC tricks.

Ps To the nay sayers I believe as long as you have contingency plans it is acceptable to borrow money to study for any professional course. Just those plans better be damn good!

[hollingworthp]

Presumably though, the deferring option simply adds the monthly payments that you skip onto the principle - making it a rather more costly proposal?