HSBC - Advice much appreciated!!

esmerellda

£4368 over the 7 years.

Are you borrowing just the £917 or is there a card or other loan to be consolidated into this managed loan ?

Triple check the terms and conditions of making overpayments and how the interest is calculated.

Lou-lou_4

Oh god no!! It's not just the overdraft - there is an outstanding balance on my personal loan of £2450ish which will be consolidated plus they have given me a temp overdraft limit of £1000 to cover the £917 and two direct debits that are due.

Don't worry I will double, double check the paperwork when it arrives but it seemed pretty genuine to me!

Lou-lou x

esmerellda

I have read so so many horror stories about these loans I hope you know I am just trying to look ot for your best interests.

When you get the agreement could you either scan it in or type up


total amount of credit
total charge for credit
total amount payable
apr

and the terms which mention making larger payments , as well as the interest calculation method.

If this is the right route for you and you NEED to consolidate your loan/overdraft etc (bearing in mind strongly that £2400 is unlawful and in dispute and when it comes to receive your refund plus 8% pa interest you will also want to put the additional interest you have paid on that sum via this managed loan to it to get that back on top)

So your loan is for approx £3367. Interest rate? is it 7% above BofE Base Rate or something (it is variable and will rise as the interest rate rises) and you are aware of what a managed loan means ? (no cards/overdrafts/credit etc for the period of the loan).

Just looking out for you and making sure you know what you are getting into, not trying to be patronising or anything like that. If you take the charges out the equation you only owe HSBC a maximum! of £967 and thats not taking interest they have charged you on the charges nor 8% stat interest into account (also I believe the £2400 figure you gave at the start of this thread wasnt including charges since you first entered your claim ? )

There are other ways of handling them at the moment you have a simple loan and simple overdraft (in dispute) once you are in a managed loan situation it will become a whole lot messier.

Lou-lou_4

Hi Esmerellda

Many thanks for your comments, I do appreciate that you are just looking out for me.

I do think that this is the only option for me at this moment in time, I mean the overdraft wasn't entirely made up of charges it was originally some direct debits that went out that I'd forgotten about then by the time my wages went in to cover them I was hit with a £75 charge and just didn't seem to get back on track with things. I have added the £340 that I have been charged over the last few months to my claim but simply didn't want to be stuck in the vicious circle of wages going in but being back to square one when the bills went out especially since they had returned a direct debit last week and a bill wasn't paid!

Your point about no credit card, overdrafts or loans is fine also - to be honest I'm quite glad to get shot of the overdraft, I only got it in the first place because OH had been made redundant and we needed some help with the bills. I was told on the phone that I just won't get an overdraft or loan etc for 12 months after that I can apply again - but I wouldn't apply with HSBC anyway as I think there are much cheaper out there (unfortunately I just can't get any of them at the moment)

I will post the agreement info when I receive it ie interest, total payable etc... i was told on the phone that the loan is for £3410 (£997.26 plus £2403.53 rounded up) and there will be 83 payments at £52.31 and 1 final payment of £52.55. But as I said I am planning to pay this off in half the time.

In January or whenever the test case finishes if ruled in our favour I will use my refund to pay this off anyway.

Lou-lou x