HSBC Managed Loan

impoverishedtraveller

Hi All,

I took out a managed loan a couple of years ago, as I was in a bit of financial trouble (and if truth be told, a little bit naive about what I was getting into).

Anyway, I was getting by making the monthly repayments without a problem until September 2009 when I was made redundant with little to no notice. I was being paid £21000 pa, and this was my income at the time I took the managed loan.

I quickly found a new job, but am now only being paid £17,000 - a big cut :-(

As soon as I found out I was made redundant, I called the bank to let them know, but was told there was nothing they could do to reduce the monthly payments, or reschedule the debt. This has been dragging on for over 5 months now - and every month I have to go Round for Round with their collections team - Each time I explain my situation and each time nothing gets agreed upon. The final straw happened yesterday when they took out over £700 in arrears automatically from my current account (leaving me unable to pay my rent or bills for the month). I raised a complaint yesterday, and they advised me to write to them as I am sick of speaking to people on the phone! I have composed the letter below and was hoping for any feedback you guys could give! Thanks in advance!

Impoverished Traveller

Dear Sir / Madam,


My name is xxx and have had an account with HSBC since 1994.

I am in current financial difficulties.



Due to these difficulties, I consolidated by debts into a Managed Loan in August 2008. As of September 2009, I believe that my Managed Loan account was fully up to date.

When I applied for the Managed Loan, I was in work with an annual salary of £21,000. I was unfortunately made redundant in September 2009. I found another job quickly, but am now paid £17,000 annually. Due to this cut in pay, I have found it difficult to meet my monthly payments of £345.12. I have contacted you on numerous occasions to try and come to a mutually acceptable amount to pay on a monthly basis – unfortunately no arrangements have been finalised, and on each occasion I am given different and conflicting information by those I have spoken to. It is clear to me that I have also been given mis-information or poor advice. This has been frustrating at the very least.

I wish to get this situation resolved and stabilised, as this is a very stressful situation to be in.

I have taken a very careful and considered look at my financial situation and have set myself a new monthly budget as below:

My income after tax is £1000 per month.

My fixed outgoings are as follows:

Rent: £462.00 per month
Household bills: £70.00 per month
Mobile phone: £25.00 per month
Travel Costs: £80.00 per month
Food and other costs: £180.00 per month

In total this leaves £183.00 in disposable income per month.

I propose to pay £150.00 towards my managed loan each month, setting aside £33 per month for any emergency expenses.

Given my current circumstances, I do not feel that this is unreasonable.

I started my new job in October 2009 and due to expansion in the near future, I have good opportunities in terms of promotion and pay increases. I am also actively seeking other jobs that are paid the same as my previous job (£21,000).

[FONT=&quot]I am happy for this arrangement to be reviewed on a quarterly basis, and if I am in the position to afford to pay more towards my managed loan, or pay the full amount of £345, then I will certainly do so.[/FONT]

Rafter

Letter looks fine - don't expect it to work though unfortunately.

I suggest you fill out a more formal statement of affairs at the link below.

I suggest you open a 'basic bank account' co-op do one and have your salary paid into there to prevent HSBC taking funds leaving you destitute as has happened in the last month.

I suggest you also speak to CCCS, national debtline or citizens advice - they will give you help with HSBC and will back up your 'available' disposable income leaving HSBC with little option but to accept.

Good luck

R.

http://www.makesenseofcards.com/soacalc.html