DMP Mutual Support Thread (Part 5)

Skintlady

DevonGirl wrote: »

I'm having exactly the same problem with HSBC. They have said they won't accept my DMP unless I take out a managed loan with them (although they have taken my token and CCCS payment!). They've set the monthly repayment amount for the managed loan at £95 which is exactly the same as the amount that CCCS have allocated them. It's really tempting to just sign the documents just to get them off my back, but from what I've read on here and the Consumer Forum, managed loans are v. v. bad.....

Am I right in thinking that by taking on their loan I will end up paying a lot more overall, and that they are going against Office of Fair Trading guidelines whereby creditors are not supposed to offer you more debt to pay off an existing debt? (sure I read that somewhere - can anyone confirm this??? )

I must be strong and resist - let them refer me to their DCA/Metropolitan who will probably accept my DMP - right??!! Support needed fellow DMP-ers please!!

Thanks in advance
DG

DONT DO IT!!!!!! honestly its the last thing you want to do they just get more money out of you, Just stick with the dmp they will eventually accept!! you will eventually get interest frozen if you keep on at them but if youj take a loan they will get thousands extra from you!!!! let them refer you to a DCA they are much easier to deal with!!! they are just trying to scare you!!!

Just_Me_4

Kudox wrote: »

HI Just Me
I was initially apprehensive about going it alone for OH but am now ok with it and in fact am considering doing it for my debts as well. In fact I have found, although CCCS have been great, that I have done most of the negotiating where it comes to getting interest and what have you stopped myself anyway.

Our thoughts exactly, thanks for your help.;)

ianmak

thatcherschild wrote: »

HSBC are complete bankers! ;)

Will not entertain the DMP offer and request we take out a loan, if we don't they're going to default us and pass us to an agency! Lovely!

Despite me being a student, the DMP and having to take cash out of credit cards they refuse to think we're in financial hardship in terms of reclaiming charges. It's quite scary as the amount in charges we're accruing every month will send the debt through the roof within a few months.

Everyone else has been fine, majority have frozen interest etc.

Can someone talk to me about final settlements whilst on a DMP? I've got a job for over the summer and will be in a position to make a one off extra payment of around £3k at the end of August (possibly more depending on the ammount the tax me as atm I'm on emergency tax rate and it's high). Would it be better spent offering HSBC (who are the most troublesome at this point) a final settlement (total HSBC debt is just under £9k)?

Can I just double check that you're not still drawing money out on credit cards?

thatcherschild

Noooo - no money out of credit cards anymore! I cut off my husband's access as soon as I found out what he'd been doing.

ceri231099

DevonGirl wrote: »

I'm having exactly the same problem with HSBC. They have said they won't accept my DMP unless I take out a managed loan with them (although they have taken my token and CCCS payment!). They've set the monthly repayment amount for the managed loan at £95 which is exactly the same as the amount that CCCS have allocated them. It's really tempting to just sign the documents just to get them off my back, but from what I've read on here and the Consumer Forum, managed loans are v. v. bad.....

Am I right in thinking that by taking on their loan I will end up paying a lot more overall, and that they are going against Office of Fair Trading guidelines whereby creditors are not supposed to offer you more debt to pay off an existing debt? (sure I read that somewhere - can anyone confirm this??? )

I must be strong and resist - let them refer me to their DCA/Metropolitan who will probably accept my DMP - right??!! Support needed fellow DMP-ers please!!

Thanks in advance
DG

Hi i am on a DMP with CCCS and also having trouble with HSBC,they want me to take out a managed loan and have declined,phone calls off them were constant,every day up until a few days ago,ive just checked my HSBC account and have just discovered to my horror that i now have a managed loan!! Can they do that without my consent???

Margin_Walker

Originally Posted by DevonGirl
I'm having exactly the same problem with HSBC. They have said they won't accept my DMP unless I take out a managed loan with them (although they have taken my token and CCCS payment!). They've set the monthly repayment amount for the managed loan at £95 which is exactly the same as the amount that CCCS have allocated them. It's really tempting to just sign the documents just to get them off my back, but from what I've read on here and the Consumer Forum, managed loans are v. v. bad.....

Am I right in thinking that by taking on their loan I will end up paying a lot more overall, and that they are going against Office of Fair Trading guidelines whereby creditors are not supposed to offer you more debt to pay off an existing debt? (sure I read that somewhere - can anyone confirm this??? )

I must be strong and resist - let them refer me to their DCA/Metropolitan who will probably accept my DMP - right??!! Support needed fellow DMP-ers please!!

Thanks in advance
DG


I'm not going to launch any kind of defense of Managed Loans as it's pretty clear what everyone thinks of them on here. I will say that I think they serve a purpose and I would definately sign for one if I could afford the repayments rather than default and have it passed to Metropolitan.

It really depends on how much of an issue a default is to you. If the debt is passed to Metropolitan interest will be frozen completely and you stand a good chance of them accepting your DMP.

In terms of a Managed Loan I cant see there being a big issue with OFT guidlines as no new monies are provided. Your existing debt is consolidated at an interest rate that is usually lower than your existing debt.

DONT DO IT!!!!!! honestly its the last thing you want to do they just get more money out of you, Just stick with the dmp they will eventually accept!! you will eventually get interest frozen if you keep on at them but if youj take a loan they will get thousands extra from you!!!! let them refer you to a DCA they are much easier to deal with!!! they are just trying to scare you!!!

It wont eventually be accepted by HSBC unfortunately. It just doesn't happen without a Managed Loan. As mentioned above it is possible with HSBC's DCA Metropolitan.

Margin_Walker

Hi i am on a DMP with CCCS and also having trouble with HSBC,they want me to take out a managed loan and have declined,phone calls off them were constant,every day up until a few days ago,ive just checked my HSBC account and have just discovered to my horror that i now have a managed loan!! Can they do that without my consent???

No they can't. You have to sign a 7 page document which I doubt you would forget doing. It's not something i've ever seen happen. I would get in touch with them ASAP if that is the case.

DevonGirl

Margin_Walker wrote: »

DEVON GIRL - Am I right in thinking that by taking on their loan I will end up paying a lot more overall, and that they are going against Office of Fair Trading guidelines whereby creditors are not supposed to offer you more debt to pay off an existing debt? (sure I read that somewhere - can anyone confirm this??? )

MARGIN WALKER
I'm not going to launch any kind of defense of Managed Loans as it's pretty clear what everyone thinks of them on here. I will say that I think they serve a purpose and I would definately sign for one if I could afford the repayments rather than default and have it passed to Metropolitan.

It really depends on how much of an issue a default is to you. If the debt is passed to Metropolitan interest will be frozen completely and you stand a good chance of them accepting your DMP.

In terms of a Managed Loan I cant see there being a big issue with OFT guidlines as no new monies are provided. Your existing debt is consolidated at an interest rate that is usually lower than your existing debt.

Thanks for your reply, and at least you are honest about being an HSBC employee rather than some of the trolls that come along.

However I'm not sure what you say about 'no new monies are provided'. Surely by encouraging me to take out a new loan (effectively a consolidation loan) they are increasing the TOTAL amount of the loan, i.e. the original capital plus the extra interest?

If there's a chance that you can get you DMP accepted by HSBC's DCA and have the whole amount frozen, you can't blame debtors for taking that action...

It may shoot someone's credit file to s**t but they can pay it off as part of the DMP rather than getting involved with HSBC's T&C of a managed loan (which apparently are very much in favour of HSBC rather than the debtor). In addition to their T&Cs, there's no doubt in my mind that the reason HSBC are so heavily in favour of managed loans is because they make money whereas freezing the debt doesn't. They bamboozle their staff with 'it's in the customer's interest to take out a ML' when in fact it's a clear financial winner for them, surely?

Anyway, that's just how I see it...

newlywed

If you are on a DMP with CCCS or Payplan you have signed an agreement not to take on any more credit at all - This includes signing any new credit or loan agreements.


The advice from CCCS is do NOT agree to a managed loan.


If you have debt with more than one company then it is quite likely others will trash your credit rating so attempting to preserve it by signing up for a manged loan and agreeing to interest (that could be stopped if it was defaulted and passed to a DCA) could be seen as a little over optimistic.

Skintlady

Margin_Walker wrote: »

Originally Posted by DevonGirl
I'm having exactly the same problem with HSBC. They have said they won't accept my DMP unless I take out a managed loan with them (although they have taken my token and CCCS payment!). They've set the monthly repayment amount for the managed loan at £95 which is exactly the same as the amount that CCCS have allocated them. It's really tempting to just sign the documents just to get them off my back, but from what I've read on here and the Consumer Forum, managed loans are v. v. bad.....

Am I right in thinking that by taking on their loan I will end up paying a lot more overall, and that they are going against Office of Fair Trading guidelines whereby creditors are not supposed to offer you more debt to pay off an existing debt? (sure I read that somewhere - can anyone confirm this??? )

I must be strong and resist - let them refer me to their DCA/Metropolitan who will probably accept my DMP - right??!! Support needed fellow DMP-ers please!!

Thanks in advance
DG


I'm not going to launch any kind of defense of Managed Loans as it's pretty clear what everyone thinks of them on here. I will say that I think they serve a purpose and I would definately sign for one if I could afford the repayments rather than default and have it passed to Metropolitan.

It really depends on how much of an issue a default is to you. If the debt is passed to Metropolitan interest will be frozen completely and you stand a good chance of them accepting your DMP.

In terms of a Managed Loan I cant see there being a big issue with OFT guidlines as no new monies are provided. Your existing debt is consolidated at an interest rate that is usually lower than your existing debt.



It wont eventually be accepted by HSBC unfortunately. It just doesn't happen without a Managed Loan. As mentioned above it is possible with HSBC's DCA Metropolitan.

Fair enough HSBC might not accept it but metropolitan probably will, i don;t see the problem with defaults if you are in severe debt chances are the credit rating is damaged big time anyway!!!!
Anyway the terms and conditons of the cccs are against any sort of refinance, whats the point of another loan when you could pass on to a dca and freeze the interest!

If HSBC are so keen for folks to get out of debt and are setting the managed loan repayments at the same as the cccs repayments then why aren't they accepting the DMP?
Because then the don't make interest? Its keeps them in the driving seat if you agree to another loan!!! They are pretty much preying on peoples fear about a default!!! when in fact its not anything to worry about! x