HSBC want me to take managed loan...

System

Steer well clear of HSBC managed loan. My GF was *FORCED* to take one and it has taken her 5 years and over 2K in interest on a 1K borrowing.

Also HSBC will not let you repay early or overpay.

Please, please don't make the same mistake she did.

Verbatim

Starting to break down! GG I think you have been treated abominally. Have you tried to open another bank account where you can get your salary paid into and DDs etc paid out? Could you then treat the overdraft as a debt which you pay off asap? If you can't transfer it to a 0% deal (does A&L still have 0% overdrafts for an introductory period?) you'd still have interest added while it was left with HSBC. And before HSBC realize you want to switch your current account you'll need to arrange with them some means of taking out enough cash for the month.

I relaize that unfortunately you have all your financial dealings with the same bank which is why to regain control you need to get another current account so they can't decide where to apply your money as it lands on payday.

Why are you in financial difficulties lately? Has something changed? As I think Clapton said if you're spending more than you earn you'll need to get that under control.

If you can't get access to money for the month can you eat at your parents' or maybe get a temporary evening job to get some extra cash?

I hope you get this sorted asap. You sound remarkably calm considering what has happened! Good luck with it all.

Verbatim

Oh and I'd say that the managed loan if it means borrowing 24k sounds a terrible idea. Would it be at a lower interest rate?? Or would it mean paying out far more over a longer period of time at higher rates? Before accepting anything like this make sure you know what the full repayment amounts would be as is and if you took the ML. Also do they want to secure this loan on your property? Converting unsecured borrowings to a loan secured on your home is rarely good news despite a lower APR as you could lose your home if you can't keep up the payments.

Xbigman

I think the first thing is to storm into the branch and ask why your card was kept. Tell them you need to withdraw some money and it is against the banking code to keep your entire income, leaving you starving and in distress.

Second thing is to open another account. It means a basic account but that can't be helped. Then get your wages paid in.

Third thing is to start an action to get your bank charges back.

Fourth is to start clearing your debts in general.

The only alternative if you want to keep your account with HSBC and your credit card would be to take that managed loan. Personally I wouldn't but its up to you to decide how to proceed.
Regards



X

greengrocer

Thanks for the advice and support, guys. I do have another account with the Halifax that I never use, so that's an option. I might pop into NatWest or somewhere to see if they can do anything for me. Trouble is, I have to wait until the 22nd or whatever to get paid again, and the mortgage etc hasn't got out yet. I've written to the HSBC again today, explaining the situation, again. Perhaps nothing will come of it, but I figured it would be good to have my general discontent written down and on file!

Xbigman - it wasn't my entire income, but it was about 65% of it when paid off the amount I was over my overdraft limit. Lots of bills get paid out on pay day, obviously, so now I'm at my limit again already with things still to pay! You say it's against the banking code - is there a particular bit you can point me in the direction of so I can quote it when I phone them?

Thanks again
Greens

lisaburton

Stay well clear I got a managed loan with HSBC and even when you get back on track financially they wont change it back to a managed loan or issue you anything more than a basic cashcard.
Short term its ok but what if you are in a better financial situation in 2 years time like me and they will not help you change it back and you have great difficulty changing it to another bank due to your credit history being wrecked even more.

Everyone has their own reasons why they opt and dont opt for a managed loan so at the end of the day its down to you but I would advise against it.

Pan_3

I actually have a managed loan with HSBC. I still have a Switch card with £100 cheque guarantee and also a £100 overdraft facility. Just thought I would mention that.

rchrisp

i have a ML with them and they are absolute t**ts about it most of the time. before i set it up though, i arranged bank accounts elsewhere, so they cant take more than i want to give them. every month they phone me about it, promise to sort whatever the current problem is out (currently overdraft that shouldnt be there due to fees that shouldnt have been applied) and they never, ever phone back. if you try to call them, you just get their Indian call centre.

now because of them never doing anything i ask, according to Experian ive missed my last 5 payments, even though they've all gone out in time! looks absolutely wonderful on the old credit rating, i can tell you.

skintasusual

can you pay a managed loan back early?