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Thanks for so much invaluable help on this forum. Hope you can help with this one as it's not a standard loan question.
I got a professional studies loan with HSBC back in 2004 for £23k.
It's a very threadbare document to say the least. It is signed (at least my copy at home is) and mentions the apr being 1% above base rate. What it does not contain is any 'charge for credit'. That was supplied as a separate 'quote' which laid down how many payments over X months would be necessary and what I would have paid back in total at the end of the term. As far as I can see that 'quote' does not form part of the agreement therefore making the agreement technically a breach of the CCA, ie unenforceable.
My main concern is that I read that under the CCA a PSL will not be so unenforceable due to it only being offered to a 'select' group as opposed the general public. Is this correct?
I've never heard of this & as it is a credit agreement I would have thought it would be covered by the Act. There have been several people on here who have challenged their student loans and won.
There is nothing stopping you from requesting a copy of the agreement, you would have nothing to lose but £1 + recorded delivery and maybe something to gain.
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However, having looked into it it appears the CCA does not regulate:
A debtor/creditor agreement which is:
(a) of a type offered to only a select number of individuals and not offered to the public generally under which:
(i) there are no charges other than interest; and
(ii) the interest rate does not exceed the highest base rate of certain specidied banks plus 1%.
I'm presuming the PSL equates to a 'certain number of individuals' as it is only offered to those with certain qualifications or training to enter certain professions. The 1% above base rate means I cannot argue that the PSL is unenforecable, simply because it is not regulated by the CCA??
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a jacuzzi with Bananarama. I have not lived in Bolton since 1986
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Re: HSBC Professional Studies Loan
I cant for life of me think why it shouldnt be a regulated agreement.
When I was a a bog standard undergraduate (mid late 80s) I had a "Student Barclaycard"
Given that the student population then was less than 10% of our demographic (born mid 60s) it seems I was one of a "select" group that was offered such a delicacy!
("Select group" - The Young Ones- yeah, that was us!)
Didnt stop the agreement being regulated agreement under CCA1974, though.
(The bar stewards still owe me a bucket load of money for their unlawful £5 charges and 23 years of compound contractual interest levied thereon!)
Yours maybe called a "Professional Studies Loan", but it is still just a loan on which they will want repaid at a specified compound % rate, with specified payment intervals and for which you signed a credit agreement.
If the agreement doesnt contain these prescribed terms, it isnt enforceable, assuming it was executed pre-April 2007
Although with such a tiny % rate, it may be classed as a "Small Loan" which is not covered by CCA74/06
When I was a mature student in the early '80s I received the married student allowance, my wife was supply teaching + I had my army pay along with the outer London weighting allowance yet still ended up overdrawn every term. I wouldn't mind we weren't living the 'high life', it was just so expensive renting + travel etc, luckily this student loan marlarky hadn't come in then.
I feel sorry for the students now, up to their eyes in debt when they graduate & that's even before the millstone of a mortgage, marriage & progeny.
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HSBC Professional Studies Loan
back in 2004 for £23k.
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