The Great H*BC Rip Off!

[catch22]

Anyone as miffed off as I am right now about the blatant daylight robbery of these high street banks?

Last year, I got a £5k professional studies loan (on top of the full student loan) from HSBC. This was just to help supplement all my expenses and tution fees. However, towards the end of my 2nd year I was in dire straits with money and desperately needed to top up this loan with an additional £4k.

The bank manager (some 18 yr old spotty squirt in a suit) refused to give me more money *unless* I took out life insurance. What the hell??? He said it will be an extra £10 per month from the time I take out more money until the day I pay it all back...ie 10 yrs time.

I was felt completely helpless and angry that I have to be at the complete mercy of these banks. Why do they think they can do this? I am already in so much debt (at least £15k) now and I am only less than half way through the course.

As a mature student, I have enough pressures to deal with. This is the last thing I need.

I'm not sure what to do. I really don't want to give into these disgusting tactics by these banks, but I feel I have no choice. I can't rely on my parents to help fund me through my course and I have no savings of my own.

I just wonder if anyone else has received this kind of treatment from HSBC??

Many thanks

[Kev]

Yes, this is part of the new conditions for HSBC PSL's. In addition the interest rate has risen and there is an arrangement fee. I too went to extend my PSL (to finance my elective) and was also informed of these new conditions. There is no escaping them, it's national policy. Should you already have life insurance, you don't have to take out their own, but not many students are insured are they?

If you are entering your second year you could enquire at NatWest. I believe their loan conditions remain unchanged.

I obtained my funding from a different source as feel their new loan conditions are unreasonable.

[exms]

Life insurance? What's the logic of that?

Is it set up so the loan is automatically repaid out of the insurance if you kick the bucket prematurely?

-- A.

[Kev]

I am assuming so. Guess too many PSL customers have been dying prematurely leaving unpaid loans!

[nursesteve]

yeah, committing suicide no doubt! LOL

[auden]

If you need the life insurance, shop around. What you need is term assurance not conventional life assurance (ie the amount of cover falls with every year you are paying back, so it just matches the debt you owe).

My policy with Norwich Union is about 12 quid a month and covers me for 52k paid back over 25 years so I'd be surprised if your premiums on 15k over 10 years needed to be a tenner a month, especially since I have extra premiums due to health risk. Endsleigh would be worth a try as well.

the bank policy will always be more expensive, they rely on you taking it for simplicity but they cannot (whatever they tell you) force you to take their one.

best of luck!

Libs

[catch22]

Thank you all for your help and advice over this. At least I know I'm not alone in this great swindle. As if we don't have enough to worry about as it is...!!

Grrr....

[maxjazz]

Hi there,

I will probably have to go with the loans option...(no pressure to pass the exams then!)
but I was just wondering could you not get the N.H.S. bursaries in second year? Also how did you get the student loan?

Cheers

[jonesy]

Catch 22 I have had similar treatment at HSBC but i realised how bad they were before I signed the contract! They reeled me in with talk of lots of money and incredibly low interest rates.....then.... when I returned to sign contracts they told me i'd need life insurance, an arrangement fee of 1% and a full budget planner. They also suggested i take a loan out on my house! Anyway, I escaped to Barclays who didn't need any such clauses and they dont charge you if you want more money. I believe HSBC charge £100 to change the amount you borrow??

Sorry i can't be any help but i do understand your predicament with HSBC, hope you manage to sort it out without too much heartache

[catch22]

Hi there,

I will probably have to go with the loans option...(no pressure to pass the exams then!)
but I was just wondering could you not get the N.H.S. bursaries in second year? Also how did you get the student loan?

Cheers

The student loan is no problem to get; I get the full whack every year. This year I got £5k.

Since I'm on the 5 yr course, so I'll only be able to get an NHS bursary in the 5th year. Don't know how much the fees will be for 2006/7. I'm expecting it to be about £3k