HSBC Managed loan - CCCS?

andreweduk

I am on a DMP and most of my debt is with HSBC. I make my first payment on 1st December to CCCS. I had a letter today from HSBC, saying they are willing to accept my payments, on the basis of the debt being consilidated into a managed loan. I only have ten days to accept this agreement, however I'm not sure if I should accept this? It seems like a very positive thing to me, however I would like a bit of advice on what I should do in response.

Thanks, I have emailed CCCS about this quoting my client number etc aswell.

GeorgeUK

Personally, i would question why they want to transfer the debt into a managed loan. Is it because they don't have an enforcable credit agreement for the existing debt? Have you tried requesting a copy of the CCA?

With the managed loan, did they mention what the interest rate would be? It's usually quite a high rate for a loan. Also, they will restructure the entire loan if there is even 1 late payment.

When people ask about managed loans, my gut reaction is to shout RUN!!

LilacPixie

I have the same gut reaction as George.

HSBC seem to favour managed loans but the interest rate and length of term tend to be extorionate. In my opinion a managed loan rarely helps and often hinders.

RAS

Andrew

A managed loan means that they front load all the interest at a fairly high rate and that they can then do pretty much what they want with your account. The one I know best also had PPI which added nealry 25% to the cost, with interest front loaded as well.

If you took aout any of the exisitng accounts before April 2007 and you sign up to a managed loan you will lose some of the protection that you have on your existing accounts.

I think you should read the t&Cs on your current accounts and then look at the T&cs on this account very carefully and take advice before you decide. And only giving you 10 days to respond seems to me like forced sales rather than a good offer.

Ames

There was someone on here a few months ago who was paying something like £62 to a managed loan, and £61 of it was interest. I'd say, from what little I know of them, to steer clear.

andreweduk

Hmmm, thanks for the help everyone!

Interest rate seems to be 10%, which seems quite high, but not as high as I had thought it may be. I'm going to photogcopy it and send it to CCCS to see what they advise anyway