managed loan

working_my_way_out

hi there i was wondering if anyone could help me. im 23 years old and a sahm to my 3 yr old and one on the way. my partner works full time and im on maternity leave.

i got into trouble wheni was 18 with an overdraft at hsbc that they applied relentless charges onto, then when i went to ask if i could make reasonable monthly payments to them of £75 a month for a debt of around £1,500, they said no and basically forced me to agree to a managed loan. i came straight out of the bank and into tears as i was trying to avoid a loan. they took my solo off me and told me it would only be for 6 months (lie) and that it wouldnt affect my credit rating (omg what a whopping lie!)

does anyone know if after all this time there is anything i can do to dispute the validity of this loan? its only being a few years older i feel i can do something about it. i was just too young before. as they took credit card off me and personal loan etc all into this managed loan it was a much higher amount, and i still owe £2,200 ish. i pay £46pm and get interest of around £25pm. id be more then grateful for any help.

thank you

grumbler

working_my_way_out wrote:

...i got into trouble wheni was 18 with an overdraft at hsbc that they applied relentless charges onto, then when i went to ask if i could make reasonable monthly payments to them of £75 a month for a debt of around £1,500, they said no and basically forced me to agree to a managed loan. i came straight out of the bank and into tears as i was trying to avoid a loan. they took my solo off me and told me it would only be for 6 months (lie) and that it wouldnt affect my credit rating (omg what a whopping lie!)

So, you got in trouble, wasn't able to manage your debts and you expectedt to keep you credit files clean?

i pay £46pm and get interest of around £25pm.

Who stops you paying more? £25 monthly interest on £2200 is just 14.5% APR. Were your overdraft and cred card interest rates lower than this? :rolleyes:

Sorry if this is not what you want to hear.

I think the only thing you can do in your situation is to claim back the charges and, probably, the interest you paid on these charges.

working_my_way_out

no i didnt expect to keep my credit files clean, i didnt expect to be lied to though.

i was managing my credit card and normal overdraft just fine, had even paid credit card off in full most months. and i asked to pay my debt off to them in decent payments, i dont see why they had to do what they did in what i consider an unproffesional way with such bad advice.

mrcow

Take a look at the threads and Martins article about reclaiming bank charges (in the loans and banking section at the left of this page).

Can you get a current settlement figure on this loan? (or is that the £2200?). What is the APR? How long have you left to run on it?

You can put the reclaimed charges towards the loan settlement.

AMILLIONDOLLARS

I think you need to gather together all the paperwork regarding your charges and claim them back, then use this money to pay off for the loan. There is lots of advise on how to do this on the board, do a search and get started.

AMD

lisaburton

I also got a loan out with hsbc for £5,000, but got a bit unstuck and missed a couple of payments when i went on materninty leave. The charges then started and within 6 months i was well over my limit etc.
I went in to speak to the bank as I was due to go back to work and explained to them that once my income was back to normal I would be fine.

They said that my only way out was a managed loan which I accepted and was told that once my finances are back in order I can change it back

Im all back on track now earning over £2,000 a month and the bank still wont give me a normal loan instead of a managed one and I have still got a basic cash card.

All the time I have a managed loan my credit score is well down so cant apply for one anywhere else.

Bit of a vicous circle and I still have another 3 years left if i stick to the managed loan paying £150 a month.

but the most annoying thing is having a basic cash card as you cant use it anywhere and when i need to buy online I have to use my capital one card which is the only card I can get due to how poor my credit score is now.

working_my_way_out

they use lies in my opinion to sell these managed loans, and that is what i am disputing. i think its awful. btw, try clydesdale / yorkshire bank, you get meastro card on a basic acc, no credit check