HSBC Managed Loan - PLEASE HELP!!

CLAPTON

You could usefully reformat the above to make it more readable for everyone

However if your current debt is 2,457 and you are paying 19.48 per month in interest then
that's a monthly rate of interest of 19.48/2,457 = 0.79 % or
an APR of 10.3% approx

for someone in your circumstances that seems a very very good rate.

Whether or not HSBC managed loans are good or bad depend upon your perspective.
If you were hoping for a zero rate loan (i.e. interest frozen) then they seem bad
If you compare them with any other commercial loan then they are prettty good... I dont know your circumstances but by the time you get a HSBC managed loan you're likely to be in the sub prime market in the 50% and upways market if anyone will give you credit.

bernieman

I am aware information has been added to other threads regarding this allow my questions are slightly different.
Back in 2004 I had left University before the course ws completed, mainly due to the cost and money problems.. I had an maxed out overdraft of 1250 and a credit card of 500 with HSBC. When I left University HSBC told me I could know longer have my student overdraft and if I didn't pay the amount straight away they would take action. This meant I had a meeting with a Bank Manager in the Leeds branch of HSBC who advised my ONLY option was to take up a managed loan. He consolidated my OD and CC and advised I should pay 30.88 a month for x weeks but he said it would be paid by 2008. I admit I missed a few payments that year as I couldn't find a job... however when I did, I visited the bank 3 times in 4 months to increase the payments to £100... the bank signed this and agreed but every month after it decreased back to 30.88. This leads me onto one of the reasons I think i have a case against it being cancelled.
They have refused to increase my payments and therefore it is taking me 3 times longer to pay off! (£30 instead of £100 a month)
secondly, they never gave me another option and therefore missold.
thirdly, I claimed back £1200 of charges from being overdrawn, which were applied before this loan and therefore I wouldn't have needed this loan in the first place.
and finally... I have now paid the ammount I originally owed £1800 but due to the interest (average £18 a month) I still owe over £1100.

I too have had a drop from £17 to £11 interest tthis month. And the first month I had the loan it was £11 but jumped up to £21 in the 2nd month!!

Sorry for this drawn out affair but my question is this. Do you think I have a case where HSBC will settle this Loan at this current position if I try and take action against them? as this loan is strangling me... the payments aren't difficult to make finicially but it's not going away.,.it's been 5 years.
Any advice as to how I send a request for the original agreement and the letters signed by the banks to increase the payments?
Who should I speak to to take this forwards?

hope it makes sense!!!!!

ILW

bernieman wrote: »

and finally... I have now paid the ammount I originally owed £1800 but due to the interest (average £18 a month) I still owe over £1100.


hope it makes sense!!!!!

Do you think they should have given you an interst free loan?

bernieman

No not interest free.

I'm building a case against HSBC as to handling of the loan from day one. I wonder if I point out to the bank I have paid the amount I originally owed, they will be willing to write off the rest of the loan? Long shot maybe but I don't think a) they have the original agreement and b) if they have the payment increase letters I filled in they will be shown up as misconduct or bank error which has cost me heavily!

CLAPTON

bernieman wrote: »

I am aware information has been added to other threads regarding this allow my questions are slightly different.
Back in 2004 I had left University before the course ws completed, mainly due to the cost and money problems.. I had an maxed out overdraft of 1250 and a credit card of 500 with HSBC. When I left University HSBC told me I could know longer have my student overdraft and if I didn't pay the amount straight away they would take action. This meant I had a meeting with a Bank Manager in the Leeds branch of HSBC who advised my ONLY option was to take up a managed loan. He consolidated my OD and CC and advised I should pay 30.88 a month for x weeks but he said it would be paid by 2008. I admit I missed a few payments that year as I couldn't find a job... however when I did, I visited the bank 3 times in 4 months to increase the payments to £100... the bank signed this and agreed but every month after it decreased back to 30.88. This leads me onto one of the reasons I think i have a case against it being cancelled.
They have refused to increase my payments and therefore it is taking me 3 times longer to pay off! (£30 instead of £100 a month)
secondly, they never gave me another option and therefore missold.
thirdly, I claimed back £1200 of charges from being overdrawn, which were applied before this loan and therefore I wouldn't have needed this loan in the first place.
and finally... I have now paid the ammount I originally owed £1800 but due to the interest (average £18 a month) I still owe over £1100.

I too have had a drop from £17 to £11 interest tthis month. And the first month I had the loan it was £11 but jumped up to £21 in the 2nd month!!

Sorry for this drawn out affair but my question is this. Do you think I have a case where HSBC will settle this Loan at this current position if I try and take action against them? as this loan is strangling me... the payments aren't difficult to make finicially but it's not going away.,.it's been 5 years.
Any advice as to how I send a request for the original agreement and the letters signed by the banks to increase the payments?
Who should I speak to to take this forwards?

hope it makes sense!!!!!

1. I'm a litle confused

you were paying 30 a month but could afford to pay 100 per month

so for four years you have had 70 spare to save up ..that's about 3,360 ..so why not use that money to clear the loan completely?
Plus you say you reclaimed 1,200 ..why wasn't that used to clear the loan?

2. As far as the reclaim of charges ... there does seem to be a case that said if the charged hadn't been made then you wouldn't have needed the loan... that does seem an arguable case.

3. I don't see any reason why the bank not giving you more than one option implies mis selling..why do you think it does?
Obviously you had other options... borrow from another bank, mum and dad etc

4. Not allowing you to overpay : the CCA (consumer credit act) doesn't say the banks must allow overpayments .. in fact lots of loans dont allow overpayment.
They must allow early settlement which is why I ask why you haven't settled the loan with your savings.

bernieman

When the loan was first setup it was for repayments of 30.88..... when I had a steady job I went to the bank and increased the monthly payments from my normal account (still with HSBC) to £100 this was last year. I went to the bank on several occasions as they moved in back down after the first month.

I am now living away from home and work further away so more outgoings than I used to have and therefore this money hasn't gone on savings.

The bank charges were used to pay off another debt i had.

The loan would have been repayed by now if they kept the increased payments on the account

bernieman

maybe I'm just looking for an excuse or loophole to get back at hsbc because they annoy me.

I feel like i was trapped into the loan and now I can't get out of it because they are blocking larger repayments. The problem is they don't write to me or inform me..... I actually go in the bank and a member of the staff has signed for the repaymnents to be increased... I first tried this back in 2006. At present 30.88 is paid off an month but interest is £17 which goes back on.

Good point before about saving the money up and settling with a lump some but in the present climate it would be difficult to have a savings account when most of my income is needed each month!

bernieman

to answer Clapton

I remember this vividly when I had the loan details on the screen... the bank manager chuckled when the computer calculated either 2008 or 2010 for payment completeion because he said... obviously you'll have paid it off by then as you can increase the payments anytime you want. shame there is a no swearing rule on here as I have plenty for that banker;)

ILW

bernieman wrote: »

Good point before about saving the money up and settling with a lump some but in the present climate it would be difficult to have a savings account when most of my income is needed each month!

Think I must be missing something here.
You say that you want to increase your loan repayments, but then say you do not have enough to put into a savings account instead. Makes no sense to me.

bernieman

This has been going on for over a year... eg before the recent problems. this time last year I was living with parents so could afford the extra payments... lost my job in oct 08 so most of my contigency was used whilst finding another job...paid 3 months rent out incase i couldn't find a job:o