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Verdict: HSBC International MBA Loan = A complete disaster October 6, 2006

Posted by InvisibleInk in MBA Financing / Loans.
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I have just got off the phone from HSBC international and they have decided to reject my loan application after two months of deliberation. Not even a revision, a straight rejection! No need to say how disappointed and frustrated I am about this. The fact that they dragged it for so long means that I now have a month before I have to pay my tuition fees and I am back to square one. I have called INSEAD and they suggested I apply to two other banks. Their rates are much higher and I have no guarantee if they will not do a last minute “ HSBC trick” on me either.

The annoying thing is most of my income was not even considered. Like many other people getting paid on performance based salaries, a substantial part of my income depends on how well I do or how much extra work I take on. From the bank’s point of view this is too much of a risk, so they simply discarded it. Having halved my salary, they also made several calculation mistakes on my expenses. For instance, forgetting to account for national insurance payments, treating six monthly electricity bill as a monthly figure, and the list goes on. Really, you would expect more from a bank. Meanwhile I was told that things were going on track and a few details could be worked on to get the amount I asked for. While I was fine tuned the details on their request, today, after all, they decided that they cannot provide me the loan at all. This is despite the fact that I now fit in their 60% income vs. expenditure rule even with my basic salary. When I asked to talk to the manager, I was told that 60% is not the only think they look at (which is complete rubbish as the person who has been dealing with my application up to this point clearly stated that this was the case). So they decided that since they cannot take security on the property I own, they would not give me the loan.

This is the first time I heard them mentioning the need to take on a security for my application. I was clearly guided up to this point that we were going ahead without such a requirement. I think this is really over the top. Let me tell you the bit that makes me the most disappointed. Apparently, Jersey laws (where HSBC International is based) prevent them from taking security on a person’s home, even if it is paid in full, if the person and/or the immediate family live there. Well, hello??? Did you not know this for the past two months? They knew every single piece of information about me since day 1, they simply either ignored it or they are really not up to scratch with financial regulations. Of course, there is also the argument about being in a good mood or a bad mood or the state of the weather on that day.

Anyway, in the end I join the club of dissatisfied (up to now a loyal) HSBC customers. Soon to convert all financial dealings to other bank. This is “how to loose a lifelong customer in a day”.

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