HSBC Managed Loan -

noah271007 · 23 January 2009 at 9:02PM

I have mentioned about HSBC Managed Loan in the other thread on couple of posts but because no one have replied I felt it is best to start a new thread.

I am currently hold a current account with HSBC with a managed loan account as well. For your information, I never have been overdrawn without permission, missed payments or been in arrears of any sort (apart from student overdraft which was agreed with HSBC) since I opened my HSBC account 7 years ago to this day.

I graduated in 2006, few months later I went to my local branch to change to Graduate account from student account. The advisor have suggested to me that I can have what they call a MANAGED LOAN, as it is more practical managing money - i can pay a fixed amount per month (£65) to the managed loan over a period of time. I was happy to accept this and had my mastercard credit card cancelled (I had a small balance, and no missed payments history) combined with my overdraft (£2,000 - balance at the time was £1,798.10 from my bank records). I thought it is a sensible option and more practical for me to manage money.

It was only last year (5 weeks ago), I applied for an overdraft of £250 for short term measure i discovered the REAL TRUE meaning of having a managed loan. They rejected my overdraft request and said it is because i have a managed loan. In explaining it further, they said that managed loans are designed for customers who previously had financial difficulties. I explained that i never had financial difficulties with HSBC or elsewhere! Not even bounced a cheque! I've complained to the Head Office and they are currently looking into it and get it converted into a personal loan as it was a mistake for me to have a managed loan!

Is there anyone out there who had similar experiences or had a managed loan. Obviously i do feel cheated now because of the high interest APR - I am not good with money and don't really have a clue at the time and thought naively that banks are acting in the best interests of the customers until now).

Thanks

CLAPTON · 23 January 2009 at 9:05PM

open a new account elsewhere

noah271007 · 23 January 2009 at 9:12PM

CLAPTON wrote: »

open a new account elsewhere

For your information, I have already opened a new account with Lloyds TSB. I wanted to transfer the salary, direct debits, standing orders etc, into Lloyds as my main account but HSBC said that as long the managed loan is in place, i cannot transfer unless i pay off the managed loan!! Isn't that outrageous when they are clearly in the wrong! :mad:

cifpower · 23 January 2009 at 9:14PM

I think that is HSBC's policy. A loan with HSBC must be paid from an account with HSBC. Transfer your DDs and SOs yourself but just transfer the funds needed to pay the loan to your HSBC account from your new account

CLAPTON · 23 January 2009 at 9:16PM

Well, that's not correct

You can arrange for your salary and all the DDs except your managed loan to be transferred to the Lloyds a/c although you may need to do it yourself.

HSBC can insist that their debt is paid from a HSBC a/c.
Obviously you will have top pay sufficient into HSBC to pay the managed loan monthly payments

noah271007 · 23 January 2009 at 9:21PM

I have been paying interest rate that are HIGHER than a normal personal loan would charged me. Do I have a good chance of getting some money back from interest rates because of their mistake? Managed Loan is for people who have mismanaged their account - am i correct? If that's the case, then it doesn't apply to me!

cifpower · 23 January 2009 at 9:25PM

You could argue you were mis-sold. If you feel that is the case start the ball rolling by making an official complaint and follow the complaints procedure

ShelfStacker_3 · 23 January 2009 at 9:36PM

Managed loans are for people who aren't creditworthy enough for personal loans but need unsecured HSBC-only debts consolidating. Having a managed loan automatically disqualifies you from having an overdraft facility or HSBC Plus, nil limits you (i.e. you can't even go overdrawn informally) and stops you having anything other than a Solo card. All this lasts until the loan is paid off.

I can't think of why the ML would have been suggested to you rather than a plain personal loan, unless it was considered that the high overdrawn balance was a cause for concern or that you wouldn't be creditworthy enough for a personal debt consolidation loan - or indeed, if there's anything else that has been omitted from your version of events (it's not unknown). It's not an actively marketed product, and it's typically a last resort or for when a customer says they're having difficulty paying back their debts.

However, this all said, you must have known the APR when you took the MLA on and presumably it's in the T&Cs, surely, that your lending facilities would be restricted as a result.

noah271007 · 24 January 2009 at 12:08AM

Thanks guys for your useful posts. I have checked the terms and conditions and it DOES NOT mention about lending restrictions while on a managed loan - I have been on it for a little over 2 years. My gut feeling is at the time, perhaps i was seen as a risky customer to the fact i had a default registered with mobile company o2 on my credit file in 2004 (Complained to Otelo who ordered o2 to remove in 2007). Perhaps this led to a decision made by HSBC Head Office to have a managed loan rather than a personal loan as my credit score was ruined over this single default? My local branch have said that they don't deal with managed loans any more at HSBC branches. Change of HSBC policy is what ive been told.

noah271007 · 24 January 2009 at 12:13AM

ShelfStacker wrote: »

Managed loans are for people who aren't creditworthy enough for personal loans but need unsecured HSBC-only debts consolidating. Having a managed loan automatically disqualifies you from having an overdraft facility or HSBC Plus, nil limits you (i.e. you can't even go overdrawn informally) and stops you having anything other than a Solo card. All this lasts until the loan is paid off.

Until recently, I had HSBC PLUS account, even with the managed loan so i don't know where you get that from! Also I had a maestro debit card as well before the new VISA debit card came out earlier this month! Basically I had a normal account and did go overdrawn last year a couple of times with no charges, but i had no overdraft or any other credit products.

noah271007 · 24 January 2009 at 3:05PM

Thanks Idavies!

I've checked my credit files from all three credit agencies, and it is spotless.
managed loan APR is 7% ABOVE England bank base rate. So at present it is only 8.5% (1.5% interest base rate) which is likely to be cut further in the next month or two possibility to zero. If HSBC would to offer me a personal loan for example for 12.9% APR, to replace the Managed Loan, would I be wise not to accept it ? My outstanding balance is more than £800. I would like to pay it off instantly but i don't have the means to do so. It will be around 6-8 months I will cleared the managed loan outstanding balance.

HSBC Managed Loan -

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