HSBC Managed Loan Hell

booneedshelp

Hello,

I’m in need of financial advice for a managed loan I took out with HSBC in April 2006. I'm trying to sort my finances out as likely to be made redundant in July so I called up for a final settlement figure. The original loan amount was £22,210.00 Inc £8,136.00 interest. I was shocked to find that the final figure is £15,500 and I still have another 84 payments to make! I left uni in 2000 with a £3500 overdraft and got stuck in the vicious circle of transferring it to a loan, maxing out my overdraft, getting lots of bank charges and adding onto existing loan. I contacted HSBC in March 2006 as I couldn't afford to make the loan repayments and offered a smaller amount. They would not accept this and offered me a choice of paying back the loan in full or taking out a managed loan..Not much of a choice! The managed loan papers were sent to me at home and I signed up to a lifetime of debt without really knowing what I was doing or having a choice. HSBC have not been responsible lenders and are ripping me off with the interest (half of my monthly £212 payment is interest).

A company called Money Saver contacted me and said as the loan was taken out before the Consumer Credit Act was changed in 2007 the loan could be void and unenforceable but would charge me £2k to investigate my case. Now I really don't have that sort of money lying around so wondered if this is something I can investigate myself?
I have contacted HSBC and requested a copy of my agreement and also a full statement including interest rates for the period of the loan to date.
I have trawled the internet for advice and although there are countless posts about Managed Loans and unenforceable loans there aren't any that state how people have gone about tackling them or how successful they are.

What I really want to know is:

1. Has anybody investigated unenforceable and been successful without the aid of an expensive company?
2. Can anything be done about Managed Loans?
3 Success stories please.

All advice gratefully received

Tixy

HSBC managed loans certainly are often expensive with high APRs but that doesn't mean they are ripping people off if they are charging interest in accordance with the original agreement that the borrower signed up to.

Lots of people have been successful in stopping paying old loans/cards due to their agreements being unenforceable and you certainly would be advised not to involve a company who will charge you a fee to look into this for you.

If a loan in unenforceable all that means is that the creditor cannot take you to court to enforce the loan. If you choose to stop paying they will still record a default on your credit file, still continue to report to the credit reference agencies and you will basically ruin your chance of any mainstream credit for the next 6years.
A lot of debt write off companies forget to mention that part.

I've not seen anyone find a managed loan to be unenforceable but that is not to say there are not some around that could be.

kate1irwin1

Hello,

I know this is now an old thread, but wondered if anyone else had experience of HSBC Managed loans.

I took one out (without any choice really, they made out they were doing me a massive favour) in around 2004 for about £10k after getting into loads of trouble with credit cards etc being a young, stupid student. (Don't have exact figures and dates to hand).
I have basically paid between £117 and £151 a month since then, and never missed a payment. Had loads of problems with them which I won't go into, but just spoke to them today for a settlement figure and it is still almost £6k!

This isn't a massive surprise as I do look at my statements but firstly, while all other creditors froze interest, HSBC didn't, and now all the others are offering a reduced figure to settle in full and HSBC are adding nearly £1800 in interest!

Is there anything I can do? I'm going on maternity leave in June and so will be without main income - while I am saving now, it will be a struggle to keep up the repayments for the 4 months I want to take off work.......my partner will be paying all rent and bills and can't really afford this too.

Sorry for long post but any advice greatfully received.
Kate.