Does this sound likely?

I'd be grateful for some opinions.

A man who is in serious debt trouble has told those who are trying to help him that he has an unsecured loan from HSBC for £10000, pays £350 per month -- which is interest only and does not reduce the balance owed -- and that he is allowed to repay the loan only in its entirety. This situation has existed for two to three years. I calculate that's an annual interest rate of roughly 43%. I realise the UK has no laws forbidding usury, but it still seems rather extreme coming from a highstreet bank.

Do you think the man is lying? If he isn't, are there any avenues for complaint?

Many thanks.

Reply to
Kyklops
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Lying, or in the jargon, being economical with the actualité.

Rgds __ Richard Buttrey Grappenhall, Cheshire, UK __________________________

Reply to
Richard Buttrey

actually there are.

I think that he has misunderstood the terms of the loan. You are right. This does not sound like the terms that a major bank would lend on.

tim

Reply to
tim

If it includes payment protection insurance, it could well be right.

Reply to
Jonathan Bryce

Send him round to the Citizens Advice Bureau.

Reply to
Tiddy Ogg

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