HSBC Retail Services/Suzuki Suzuki Bike Ripoff Carol Stream, Illinois
Purchased a Suzuki bike financed thru HSBC a couple of years ago. The interest in the beginning was outrageous. My payments were 180 a month, with only 50 dollars going toward the payment, the rest was interest.
Just recieved a statement saying the interest went from 12.9% to 24.9%. Interest alone on April 2012 statement is 231.12 making my payment now 348.00 a month.
I dont understand how this can be legal. I have payed on this bike for a couple of years and my balance is maybe less than a 1,000 from when I first bought the bike.
If anyone has any ideas how to resolve this problem, please let me know. My statement says if I pay 464.00 a month for 3 years I will save 16,700. That is around 4,000 more than I originally paid for it. If I pay only the monthly payment it will take me 26 years and cost me 34,389.
1 Updates & Rebuttals
Robert
Irvine,California,
U.S.A.
Welcome
#2Consumer Comment
Mon, April 09, 2012
Welcome to the wonderful world of credit and credit cards.
Interest alone on April 2012 statement is 231.12 making my payment now 348.00 a month.
I dont understand how this can be legal.
- You are lucky it is only 24.9% right now. If you make late payments it may be possible to go much higher. Oh and yes it is very legal.
If anyone has any ideas how to resolve this problem, please let me know
- Pay as much as you can every month to get the balance down as quick as possible. Never pay late, and never pay less than the minimum payment. You may not like this answer but unless you want to screw your credit up for the next several years, and possibly get sued this is what you need to do.
As an alternative you may be able to find another bank who will loan you the money at a lower rate, which you can then turn around and pay this one off. But if you have a very limited credit history don't count on that.