I heard last week that the factoring division of HSBC had increased the interest charge to one of their recruitment company clients from 1.5% over Base to 3.5% over Base and had also increased the factoring service charge. They stated that the reason for this was down to Basel 11
In the same week I read an article in The Times that said “History, of a sort, was made this week when HSBC declared that, from next month, it will be offering its “lowest mortgage rate ever” – a super-cheap 2.99 per cent deal”
Something doesn’t quite add up here
Do you think there has ever been consistancy in banks pricing?..of course no. Mortgages have always been a special case though. I think its probable that factors and lenders will increase costs on a “case by case” basis given the risk weighting at present time has changed considerably – especially with recruitment cos regretfully.
My point was more to do with the reason that HSBC gave for increasing it’s rates rather than for the increase itself.
I’m sure that we handled an enquiry last year from a client of Lloyds TSB who were having their rates increased due to the increase in the cost of petrol.
What next increase because it’s snowing!..point taken Ian.
I understand termination charges are coming under increasing scrutiny – again. Some Factors & Discounters are blindly walking away from cosy self regulation (with a toothless and self interested governing body)into a controlled environment. Some of the fees being charged cannot be justified
I agree that termination charges are becoming more of a problem. I am currently trying to help a company move away from HBOS but they rather unwisely signed an agreement with two years notice and the termination fees that are being demanded would bankrupt them
I think the HBOS deal you mention is just plain “unfair contract terms” We really do need a set of decent standards…the ABFA should be doing this as we all know..