BBC Puts HSBC in Spotlight Over Aggressive Loan Tactics

From BBC News today

Banks ‘prey on customers in debt’

Some people are agreeing to make payments they cannot afford
Banks are being accused of pressurising customers who have financial problems to take out expensive loans to try to ease their debts, the BBC has learned.

Some banks are repeatedly telephoning customers to try to get them to take out costly loans, against the advice of debt charities.

Citizens Advice said it has received many complaints about the increasingly aggressive tactics being used.

Banks say interest rate charges are up to them.

HSBC bombard customers with loan offers

Continually telephoned

People find that even after they have been dealing with us they have found that they have been continued to be written to. They get aggressive letters and phone calls from their lenders
Peter Tutton, Citizens Advice

The BBC’s Breakfast programme has discovered some customers who have an agreed debt repayment plan with a debt advice charity are being put under pressure to take out loans, sometimes at a higher interest rate than they are already paying.

One HSBC customer, Simon Chandler, said that even though he had declined the bank’s offer of a “managed loan”, they had continually telephoned him to try and make him change his mind

The interest rate on the managed loan is 13% – double what he is paying at the moment.

He said: “I have had multiple letters from HSBC saying they want to help people in financial difficulty – when clearly they don’t.

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