HSBC - Managed Loan?

MadDogWoman_2

Hi,

I'm on a DMP with the CCCS.

I've received a letter off HSBC today saying that they will accept the proposal from the CCCS only if I convert the overdrafts into a managed loan.

Does anyone have any experience of managed loans with HSBC?

I have also contacted the CCCS for advice.

Thanks

MDW

Nargleblast

HSBC offered me the same deal - I ran it past CCCS who advised me not to do it because HSBC could still lump on charges and interest and the loan would never get paid off. When I mentioned this to a HSBC person he said CCCS advise some people to agree to managed loans, and others not to. I have seen others on this site say that HSBC do tend to say they will only agree to debt management plan payments if you take out their managed loan. Sounds a bit like blackmail.

Deep_In_Debt

Don't do it!!!

Firstly, you are not supposed to take further loans whilst on a dmp.

Secondly, this is typical HSBC (the World's favourite bank apparently!) to get more dosh out of you. Just leave them be and let their "fantastic" offers etc run their course and they will eventually accept your dmp.

I don't have any debts with HSBC but have read loads about this.

Tixy

The only thing I know about HSBC managed loans is that they are very bad news. Seen a few threads around that mention them in the past and people's advice is always just say no (unfort i can't remember exactly whats so bad about them)

MadDogWoman_2

Thanks,

You've confirmed what I thought, don't touch it with a barge pole.

Letter will be placed in File 13.

MDW

penguin83

Hi MDW - they will pass it on to their collections Metropolitan who believe it or not are pretty simple to deal with (well in comparison to HSBC who are a nightmare) and they will freeze interest and charges and more than likely accept the DMP offer so definately another vote from me not to accept the Managed Loan! xx

Fullhouse

Hi all, I'm just going to play Devils Advocate and say maybe you should get further info from HSBC on what they mean by "managed" loan before you decide. I had a managed loan some years back with HSBC and all it meant then was that I paid back what I owed them in installments (which you are doing on a dmp anyway). There were no more charges or interest added. They also converted my account to a basic account instead of closing it which they would have done if I hadn't agreed. Just a thought

JG1984

i foolishly took out a managed loan with them when i was younger, high apr and they would never allow me to pay extra, nice little earner for them

suze72

I have just started a DMP and my main creditor is HSBC. They also offered me a managed loan which with the interest would have increased my debt by another £6000! Needless to say I ignored them!!:D

telboy99

HSBC tried to get me to sign for a managed loan-CCCS said no chance.
Lloyds TSB have also tried it on but just tell them what i told them-Get lost.I am not getting further into debt by borrowing more money.It worked and they now accept my DMP payments with no fuss.

mary_mungo_+_midge

Hi!
I too was offered a managed loan from HSBC but did it through the HSBC hardship dept, as I was trying to claim back £5000 worth of bank charges run up before my LBM!

I have agreed to it as they lumped together my credit card, overdraft, and existing loan as a 0% loan. It may be worth writing to the hardship dept as only they can waive the interest charges when setting it up. I was told they take some responsibilty for getting you into this mess, which seemed very reasonable.

No one else would possibly have given me a 0% deal so I have agreed to it but am saving hard for F&F's to all creditors and hope to eventually pay this off in a lump sum in a few years, hopefully with my charges refund, when it comes lol!