HSBC Managed Loan

ProjectZeus

Hi All,

I'm a long time lurker, first time poster that would appreciate some advice.

I have been successful in reclaiming several £ks in PPI and bank charges over the last few years (thanks to this site) but one issue still remains - a managed loan that my wife had for a number of years which has since been converted back to a 'normal' personal loan.

We have contacted HSBC with concerns about how and why the loan was converted - my wife had not missed a payment on her original loan but had contacted them to discuss her finances as she would be going on materinty leave and her income would be reducing for a while etc... The upshot is she ended up with one of these loans and her monthly repayment droppped by £35 per month but at a cost of the APR going through the roof - an all too familiar Managed Loan story...

HSBC are happy that the loan was correctly sold, all information given, 'you signed the agreement' etc.

I still feel that unhappy with the situation but feel that we will get nowhere taking this particular argument further with them.

However, part of my wife's original loan with HSBC included PPI payments of £30 per month which HSBC has since refunded on the grounds that it was incorrectly sold. My issue now with HSBC is that they contributed to the need (which I'm still not convinced of) for the managed loan by in effect overcharging to the tune of the PPI payments. Take the PPI out of the original loan repayments and the monthly cost would have been almost equal to the reduced managed loan repayment. My wife was in effect paying per month with the managed loan what she should have been paying with her original loan but incurring huge interest charges. Does this seem like a valid argument?

I've not come across this situation before with regards to managed loans and PPI so any views and/or advice would be appreciated.

Thanks
PZ