HSBC Overdraft removal - Advice needed

Gruntfuttock_2

Hi

I am seeking some guidance over my fight with HSBC.

I have recently been advised that my OD for £1500 has been rescinded and have been asked for immediate repayment of same. As you can imagine this is not possible.

I wrote to them offering £50 per month and advised them that I was transferring £100 to them as a 'downpayment'.

They ignored my letter and sent me the letter demanding immediate repayment.

I wrote to them again enclosing a copy of the ignored letter, re-iterating my intention to pay £50 a month and enclosing a cheque (partially for good measure and partially as proof that the letter had been received).

Now they gave contacted me agreeing to the £50 per month on the basis that the balance is converted to a MANAGED LOAN with £243.56 interest slapped on top for good measure...

My situation is that I should be in a position to clear the whole lot in one hit - but not for another 30 days - and not through taking out a loan. I am tempted to get bloody minded as they have been real sh*tbags to me over the past few years and continue the drip-drip-drip payments - additionally I will be going after them on the Charges Repayment scheme so beloved of our glorious leader - but want to 'keep my powder dry' on that until this matter is resolved.

I need to know the following:

1. Can I refuse their loan as I am offering a reasonable payment structure (and already exceeding it)? If I do refuse - what is left to HSBC - especially if I am paying up?

2. What is a managed loan - is this a normal plain old loan, or is this the type of thing which looks bad on ones records?

Can't think of anything else at the moment - I will greatly appreciate any/all advice on this matter.

Thanks for reading.

jonesMUFCforever

First of all an overdraft is repayable on demand - you should have known this at the outset when they would have sent you the T&C.
Secondly the bank would not remove your o/d facility without good reason ie either you have been misbehaving or they have found out some information from a credit agency that spooked them - I feel that your posting does not give the whole story.
HAVING SAID THAT I think you have set out a reasonable plan to repay as long as you stick to it.
I would advise that you contact CAB and refuse to accept the loan.I presume that you already have another bank account opened for your salary etc as HSBC will probably freeze your account from now in.

gt94sss2

ejones999 wrote:

First of all an overdraft is repayable on demand - you should have known this at the outset when they would have sent you the T&C.
Secondly the bank would not remove your o/d facility without good reason ie either you have been misbehaving or they have found out some information from a credit agency that spooked them - I feel that your posting does not give the whole story.

HSBC announced last month that it was totally revamping the way in which it grants and reviews overdraft limits for all its personal customers.

Its quite possible that Gruntfuttock may have got caught up in this exercise rather than having done something 'wrong' as such - otoh it could also be some behaviour that HSBC don't like which has triggered this (i.e having a student or graduate type account with an interest free overdraft and putting all the money in a savings account!) or something totally different..

Regards
Sunil

Gruntfuttock_2

Hi

ejones999 is 'right' to some extent - its not that we have misbehaved - just not paid into the account for some time - it was on hold - and was always a 'problem' that I was avoiding until it became necessary.

I didn't mean to mislead the forum - if they want to remove the OD I know they are within their rights - but as usual they don't go about it in a pleasant fashion - hence me feeling stubborn.

My main doubts are the phrasology of a "Managed Loan" - coupled with an unusual looking set of loan docs - I am concerned I would be signing up for something which puts a really blackmark on personal record - something I can avoid.

I do want to buy a bit of time - hence I thought I would pose the question to the forum - most of you have felt the same level of antipathy to a bank as I hold for these b*stards (more stuff in our history - won't bore you with the details).

There is also a small feeling of 'power' developing in which us miniscule plebs can make banks behave in a manner which is akin to the way us human beings deal with all our regular suppliers/customers and people we meet in everyday life.

Naive? Probably.
Angry? You bet...

YorkshireBoy

Googling "managed loan HSBC" returns several hits, the first two of which lead back to this very website...

http://forums.moneysavingexpert.com/showthread.html?t=177947

http://forums.moneysavingexpert.com/showthread.html?t=92532

jonesMUFCforever

Sorry but if you do not pay in on a regular basis what do you expect HSBC to do?
Naive? Probably.
Angry? You bet...
Why; you have taken their money and you are angry!

kittykate_2

i've got a £1500 overdraft with hsbc, it's my graduate account. on the t&c's it says i can only have it if my wages go into that account or something like that.

oldfella

why not temporize for a few weeks until you have the money, call them to arrange a meeting to discuss your alternatives, then think about it, then call them again etc etc

Mike