DMP - HSBC Nightmare

303

Deep_In_Debt wrote: »

It may start as a good deal but further down, they will probably lump on various charges etc - otherwise, how will they make money?

I made sure when I first contacted HSBC about our financial situation, that I mentioned I'd already been in touch with the CCCS for advice. They might not make any more money on a 0% loan, but they presumably realise that this way they get all of their money back, as opposed to a percentage on an IVA, or potentially nothing at all in bankruptcy

DevonGirl

303 wrote: »

I made sure when I first contacted HSBC about our financial situation, that I mentioned I'd already been in touch with the CCCS for advice. They might not make any more money on a 0% loan, but they presumably realise that this way they get all of their money back, as opposed to a percentage on an IVA, or potentially nothing at all in bankruptcy

The thing is, HSBC just don't listen to their customers. They couldn't care less whether you go in to DMP, IVA or B/R. They seem to have a fixation on pushing their managed loan and just go pushing for this regardless. For example, HSBC are well aware that I'm on a DMP with CCCS but it doesn't stop their bully boy scare tactics. I'm not alone - there are a number of us on DMPs on the DMP Support thread who have the same thing.

From what you've written here and on your other thread (I'm getting confused) I think in essence the idea is that they will start off on 0% and then find some reason to raise this. There's no way they will get no money out of a managed loan. The very name managed loan implies that they pull all the strings, and you won't be in charge.

As far as I'm aware the CCCS strongly advise against M/Ls, regardless of what the creditor says. They advise you to keep to the agreement not to sign any further credit agreements, just tough it out and keep paying the DMP payments. But of course, it remains to be seen when you phone them tomorrow!

Hope this helps

Deep_In_Debt

Agree with everything DevonGirl says. I have no dealings with HSBC, but am just going on what I have read on here - HSBC will want to make money somewhere along the line so during the term of the loan, they may add on all sorts of charges, they're in control, not you.

CCCS will advise you against it, you need to ride the storm with HSBC for a while.

sam_wells

do not give in to them. if they do not accept your offer of payment then they will sell your debt to a debt management company who will. if you have sent a financial statement saying that is all you can afford then they can't have any more. i would also get in touch with your debt management advisor who will explain what to do next. we went to CAB with our debts and they took over everything on our acconts and sent letters to our creditors. we were told not to worry over threatening letters and forward them to her. we are well on our way to paying off our £24,000 debt. we now owe £14,000 and let most of our accounts get passed to debt recovery agencies who were prepared to accept low payments. good luck