HSBC Horror Stories

PT in Wisconsin said: “I accepted a line of credit from Beneficial Finance in the amount of $5000.26 with an APR of 29.936 on Dec 12, 2005 with 60 payments equaling $161.58 a month. Including interest, the loan was for the total of $9694.80

Mar 21, 2006 I was offered a lowered interest rate of 26.900 with an $8000.00 line of credit and a monthly payment of 142.00. It turned out to be a revolving account with no fixed date of repayment. Did I realize this when I signed the paperwork? Somewhere in the back of my head I thought it was still at the fixed 60 payments. My mistake.

When I realized what a bad deal this was I called the office to arrange having my account changed from the revolving back to the fixed account I had. I was notified on Jan 12, 2007 and again on Mar 23, 2007 that they could not approve my application at this time.

Even so, they increased my line of credit over 2 years from $8000.00 to $13,000.00 as of Jan 2008. Of that amount I have used a principal of $9050.00 over the past 3 years. I have stopped using the account as of Oct 2007 and have focused on getting it paid off. Of the 213.00 payment per month approximately 200.00 goes to interest.

This would go so much better if they would lower my interest rate or put it back to the fixed 60 payments but they won’t even approve the application for it to return back to what it was. Do I have any alternative in dealing with this situation regarding the account and interest rate?

Thank you, I would appreciate any feedback. I would like to get this paid off in my life time. I presently own no property except for a used vehicle that I have payments through 2010.”