HSBC Managed Loan, incorrect interest?

[Timsta]

Hi all,

 

I've received the credit agreement from my wife's HSBC Managed Loan.

 

It has all the prescribed terms, was signed by the bank the day before we signed it, however, I have thrown the numbers at DUAL CALC and they don't add up.

 

This is what the Agreement has:

 

Loan amount: £1150

Interest per annum: 10.75% (APR 11.3)

Initial payment: £17.70

94 further payments at £18.04 per month.

 

Now, Dual Calc works out the following:

Nominal Percentage Rate: 11.01%

Effective Percentage Rate: 11.58% (is this basically the APR?)

APR: 11.6%

 

 

So, being that they are actually charging us more interest than the say, where do we stand? More importantly, where does HSBC stand?

[tiglet]

Have you tried writing to them and asking them to clarify the interest?

[42man]

Timsta...I believe there can be a small variance in the rates, but if you need help on this I would send a PM to Peter Bard (but give him the link to your thread rather than putting the details in the message) He is a busy guy but is an expert on these things, he usually gives a response within a couple of days or so !!

[Belaflat]

I ran mine through the Financial agreement solutions website and although it contained prescribed terms, the amounts were wrong and according to that site, rendered my agreement potentially unenforceable.

I haven't tested it out in a court yet and to be honest, I hope I dont have to but since the account to which this relates is being handled by one of the lower lifes in the DCA world, you never know.

[42man]

Hi Bela....I know there can be a small variance like (something like) +1% or -1%, was yours way out ? Peter Bard has commented on this somewhere on the forums....

[Belaflat]

42Man, I am not too sure on the exact amount. As you may be aware, it is a commercial site and for the full details on how to proceed, I had to pay. Up to now, I havn't needed to.

If crunch time comes then perhaps the speculation of 50 pounds or so may be a good investment when weighed against the consequences of a CCJ for many thousands.