Hi Folk!
In 2001 due to cashflow I was forced to move my overdraft a/c into moving to a 'managed loan account'. I have a small amount of bank charges to go after - £500 say.
I soon got out of my cashflow problems and had cash at bank. I wanted to move my 'managed loan' back into an overdraft (I had an £8k loan and £4k cash at bank). I was told I had to repay the loan in full before being able to have the overdraft. (I was not told this at the very brief meeting when they moved my account to a managed loan). Which I couldn't do. I therefore forced into paying big interest charges on my loan and receiving nothing on my cash at bank (which I wanted/needed to keep liquid - which as overdraft would allow but paying part of the loan off wouldn't). I tried to transfer to another bank without success (A&L with it 'fake' rarely given offers and using bait and switch!). I requested set-off of the two accounts and was told this was 'not possible'. Therefore I paid alot my bank interest than what I would have done with a more suitable product and I was prevented from moving to that product by the bank who new it would make more money by stopping me. I would calculate the overcharge in bank interest as being approx £3k - so 6 times what the bank charges are.
So my question is - can I try to make a claim for the bank interest 'over' charged just like the bank charges - should I claim both at once (My bank is the HSBC) - I want to close the old managed loan account and then make a claim - I assume I'm not putting myself at a big disadvanage by doing this.
This was the only time I've had a cashflow problem (thankfully) - I had a new g/f and we were burning money. I hit a wall and they wouldn't extend my loan even alittle bit to get food. They knew I got a monthly salary and I had a big tax rebate coming - but no if I wanted the money for food I had to go for the managed loan - so no agreement was signed they just converted my overdraft and credit card into this managed loan. So in a way I was 'forced' but really by my circumstances and the banks hard line.
Many thanks!