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HSBC mortgages shifted to AMP

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  • HSBC mortgages shifted to AMP

    You may be aware that HSBC has sold part of its mortgage portfolio to AMP w/e/f October 2007.
    I am one of those who have been sold.
    So far, from AMP I have received:
    - a printed loan statement dated 23rd October showing all my mortgage balances at zero (that's great!) and interest rates on each loan set at 10.2% (not so great).
    - a letter from AMP dated 26th October 2007 asking me to complete and sign a number of forms and return them to AMP no later than 23rd October 2007. Unfortunatly, my time machine is not serviceable right now.
    - a copy of a printed booklet "AMP Lending, General Terms and Conditions". What makes my hair rise in this in clause 10 on page 5, which states:
    "We may, at any time and without notice, set-off any amount that you owe us against any amount we owe you. You cannot set-off any amount we owe you against any amount you owe us."
    In other words they want the legal right to do something that they wish to ban you doing to them. Not on.
    And further down the same clause:
    "Our certificate about any amount, rate or fact relating to your accounts will, unless there is an obvious error, be conclusive evidence of that amount, rate or fact".
    So only obvious errors are to be admitted. If any error is unobvious that makes it OK? Is the difference between a $100,000 debit and a $700,000 debit unobvious? After all its just a minor alteration of a small black mark.

    I have contacted them by telephone, and voiced my displeasure. I will not sign under these terms and conditions. Maybe the Banking Ombudsman or Fair Go are the next step.

    If anyone else here is in the same situation, I urge you to reject these conditions and agitate for a more balanced approach.

  • #2
    Well spotted, it must be mentioned that most lenders have this kind of clause somewhere in their literature. I am sure it may boil down to the providers covering themselves from a legal standpoint but it’s hard to read and understand why without thinking of a context.

    The general terms and conditions are just that, designed in such a way as to try and cover every set of circumstance that can occur and probably has occurred in the past. It will bother some people it won't bother others, it should be of more interest to those people who run into conflict with the provider as at that time the small print really matters.

    I hear what you are saying I can even agree with you that it seems a little too much but to be honest I have more trouble with the terms and conditions on an ipod and itunes than I would with a bank or loan provider. The lesson is that all banks will want a degree of control. All banks will make errors as they are people. If you feel strongly then you could research which provider won’t include such a clause.



    • #3
      Hi flyernzl,

      I don't understand why you have to do anything.

      If the mortgage has been sold to another company, well and good, that should not affect you as AMP have bought the mortgage as it was.

      I reckon they are just trying it on and seeing if they can get lucky with you and others.

      If I was in this situation I would do nothing untill and if my hand was forced. There is a great learning opportunity here to see how they deal with the mortgage, ignore them. No point in getting upset just play them at there own game and have some fun with them.
      If you are paying on time why bother.
      What does it say in your mortgage documents?
      It could be that HSBC had this in mind from the beginging and have given the new buyer AMP this flexibility? good luck.


      • #4
        AMP transfered all their mortgages to HSBC a couple of years ago so that's funny.
        Nigel Turner


        • #5
          bak and forth

          I was just thinking the same. I was one of the customers AMP sold to HSBC back 4 years ago or so. The transfer went quite smooth, HSBC just wasn't doing it for me so I switched. Funny they are selling it back to AMP.

          Argue for your limitations and sure enough they're yours. - Richard Bach


          • #6
            I thought Kiwibank bought the book



            • #7
              Yes it is actually a Kiwibank loan, but branded AMP.


              • #8
                Back a couple of lifetimes ago I paid what at the time I considered a small fortune to get a Citi Bank revolving credit on a commercial property.
                This agreement stated the loan had no termination date. That facility worked good until they sold out to AMP.
                Then AMP also sent me the new terms including a termination date and so forth. The interest rates became uncompetitive. Their service was patchy to say the least. You had to ring someone in Australia 24 hour number. Everytime I rang them they said they could not access or anwer this or that because they were closed or out of business hours.
                Then they sold the residential book to the HSBC and the commercial to GE Finance.
                GE wanted $150 fee per transaction. I refinanced and paid them out.
                So much for the great lifetime facility I paid for from Citi Bank.
                Best in my opinion to avoid dealing with any firm that will not honour its commitments and operates to the Golden Rule. He who has the gold makes the rules.