managed loan extortionate apr

kevinelly

Finances are actually in reasonable order at the moment so don't have to. Will proceed complaint with FSA first. But will also consider all options! When banks act like this though wouldn't condemn anyone for doing what they have to.

moneysavingallday

PROLIANT wrote: »

So you have paid £12k and the debt has only reduced by just over a grand!!!!!!!! !!!!!! is going on here? If I was you and I normally will not condone this...bump the lot! Walk away and hide for a couple of years then if you are caught up with just deny it till the cow's come home, until the six years from default has elapsed the debt will be wiped.

LOL that's very naughty!:D

kevinelly

Clapton

Your maths may be right. Point is HSBC never informed me that I could make overpayments and paperwork did not explain......also ensured me that if account was in order could move to cheaper product. Now they wont let me!!

May have been a fool in the past but have paid my dues. They will prey on anyone that has let themselves into this situation and then wil not let them off the hook. Immoral?

kevinelly

Clapton

The loan term stated was 13 years and until I tried to change there was no indication that I could still have a substantial debt at the end of this term. As I have already stated they will not inform you of changes to the interest rate that they charge. Scandalous!!!!

moneysavingallday

16 odd % APR for an unsecured loan isn't totally ridiculous per se. I think it is because you borrowed such a large amount that things are getting out of hand.

What are you going to do?

kevinelly

Moneysavingallday

Have just got over the brow of the hill from my financial difficulties and can see a clear way ahead. HSBC refusal to put me on mainstream cheaper product has been a kick in the teeth. Fortunately do not have to react quickly as can afford so will let my complaint run its course and see what happens. I believe in making these complaints because I know that others wont be as fortunate as me and will suffer.

Once complaint has run its course will leave all courses of action open. I see no reason to play fair with any organisation that pursues its business in an immoral fashion. I have tried to be fair myself already.

moneysavingallday

But I don't really understand what HSBC have done wrong, Kevin. Presumably you ran up a large debt wtih them and now you are paying it off. 16.9% APR is not at all unreasonable especially considering your finances were, it seems, iffy at the time. What are you hoping to get from them?

kevinelly

Fair treatment. Have put my house in order and accept entirely that I had not been running my account responsibly. Was assured that if I was able to do this I would be treated like any other customer and given access to the facilities that were available to any other customer. Having reached this point, and I believe I have gone beyond this, I expected the assurances to be honoured.

Instead of this HSBC have merely looked at the clear profit margin of a paid managed loan account. I suspect and accept that managed loan accounts take into consideration the proportion of customers in this position that will progress into IVA or bankruptcy. Having shown that my house is in order I expected to be shown a route back into mainstream banking.

HSBC are dragging customers into these accounts as quickly as possible and have been rightly criticised for it. The message given out is that they are helping customers in difficulty. The reality is that they are recouping as much as they can before debtors fall into irreparable default. I haven't fallen on that side but am still being tied in for a thirteen year or more sentence. Please do not think that they are trying to act in the best interest of any customer that may have fallen on hard times.

Once in, your in.

My representations on this site are don't sign up. However I choose to deal with the problem of my HSBC managed loan is up to me. My message to those being offered/coerced into HSBC managed loans is don't sign up. Take all the professional advice that you can to find better alternatives since HSBC will not be acting in YOUR best interests.

moneysavingallday

kevinelly wrote: »

Fair treatment. Have put my house in order and accept entirely that I had not been running my account responsibly. Was assured that if I was able to do this I would be treated like any other customer and given access to the facilities that were available to any other customer. Having reached this point, and I believe I have gone beyond this, I expected the assurances to be honoured.

Instead of this HSBC have merely looked at the clear profit margin of a paid managed loan account. I suspect and accept that managed loan accounts take into consideration the proportion of customers in this position that will progress into IVA or bankruptcy. Having shown that my house is in order I expected to be shown a route back into mainstream banking.

HSBC are dragging customers into these accounts as quickly as possible and have been rightly criticised for it. The message given out is that they are helping customers in difficulty. The reality is that they are recouping as much as they can before debtors fall into irreparable default. I haven't fallen on that side but am still being tied in for a thirteen year or more sentence. Please do not think that they are trying to act in the best interest of any customer that may have fallen on hard times.

Once in, your in.

My representations on this site are don't sign up. However I choose to deal with the problem of my HSBC managed loan is up to me. My message to those being offered/coerced into HSBC managed loans is don't sign up. Take all the professional advice that you can to find better alternatives since HSBC will not be acting in YOUR best interests.

You haven't answered my question. What sort of APR is it you're expecting? I don't see how you can expect better than 16.9% or whatever it is considering you have a history of mistreating HSBC account faciliities in the past. At least they've let you pay this off by installments! They could have thrown the book at you back then and made you bankrupt or something. I just don't get why you feel so hard done by.

kevinelly

As I explained earlier I am paying a lot more than 16.9%. Over a thirteen year period I will be left with a substantial debt at the end. They will not even inform you of what interest rates you are paying

Although my past record was poor (although not that poor) with HSBC my record with HSBC and all other finance over the last three years is impeccable. I was given assurances that have been reneged on. Whilst you may think 16.9% is good, and I am paying a lot more than that, HSBC customers are offered much better rates than that. My credit rating iwith HSBC (customer for 20 years) when I tried to change products was "above average" according to their internal measures. My credit rating with Experian is 999 out of 100 ("in the top 20% of people applying for credit in this country"). Yet once your in, your in with a managed loan. Do I really have to serve a thirteen year or more sentence?