HSBC Managed Loan - Anyone Heard of/Had One?

Another_1_Bites_The_Dust

I was talked into getting this 'managed loan' from HSBC 3 years ago. I pay £90 a month on £5,300 and after 3 years of paying it I've only paid off £415! I pay on average £71 a month interest and I was never 'told' that I wouldn't be able to get any credit just because I had this loan. I was told it was my best option at the time and I was certainly sucked in. Has anyone got any tips on how to get rid of this or get any interest back? Has anyone had any dealings with one of these loans from HSBC?

:mad:

Fitzy29

I had one of these from HSBC a few years back, and yeah you're right they won't allow any other borrowing whilst you have one.

Mine was for four years, but on the second year following excellent conduct of my account I asked for a normal loan to do the kitchen up and to pay off the remaining managed loan..they said yes!

You're best going into your home branch where the account is held, as the people on the phone tend to stick tightly to the rules, where as branch lending is much more flexible.

Good luck!:D

vivienne.bell

oh yes they tell you its your only option and then you're stuck .I've had mine since 2002 it was for £2,280 84 payments at £38.73(thats 7 years :mad: if I could get another loan I would pay it off) 4 years on and I'm still owing £940 approx ,cant get a loan, cant have any overdraft, nothing - it sucks and supposedly 11.6% interest but it seems like more

Phoenix79_2

I think they have withdrawn this product from their range. I'm sure i saw an internal note to this effect the other day.

As for it being a rip off? I'm sure you were grateful for it at the time you took it out as you had no other alternative.

Another_1_Bites_The_Dust

As for it being a rip off? I'm sure you were grateful for it at the time you took it out as you had no other alternative.

I was never grateful for it! To be honest at the time anyone would have given me a loan, I wasn't in a great deal of debt, £5k and that was it, total. Had HSBC of told me on the phone at the first point of contact then I would NEVER have gone for this, I don't think anyone would if they had other alternatives.

If HSBC have since withdrawn this loan, there's obviously a reason as far as I'm concerned - they're certainly making a lot of money out of it so I'm sure profit wasn't an issue.

Phoenix79_2

I think you need to get loan with another provider (NR, Abbey, AA etc) and use it to pay off the managed loan.

As for withdrawing it.....Banks are always reviewing their product lines and maybe just thought it was the end of the line for it?

lisaf

Hi Another 1 bites the dust. I too have a managed loan for £19,000! We were also made to feel very grateful that they were giving us this. We pay £254 per month and £180 of that is interest, exactly who are the ones benefitting here? We're just claiming back £10,000 worth of charges from them so that would go a long way in paying off this 'loan'! I feel totally stitched up, is there ANY way of claiming anything back (even the interest)? Lisa

msaquib

lisaf wrote:

Hi Another 1 bites the dust. I too have a managed loan for £19,000! We were also made to feel very grateful that they were giving us this. We pay £254 per month and £180 of that is interest, exactly who are the ones benefitting here? We're just claiming back £10,000 worth of charges from them so that would go a long way in paying off this 'loan'! I feel totally stitched up, is there ANY way of claiming anything back (even the interest)? Lisa

What's the APR on HSBC managed loan? and you make any overpayments?

M

lisaf

Hi msaquib, I'm not sure what the APR is (must be extortionate)! I don't make any over payments.
Lisa

Kazonline

When my divorce seemed to be taking forever (just over a year - normal apparently) they tried to bully me into taking one of these to pay our joint loan and overdraft off. I'm so glad I didn't. Despite knowing I was under medical treatment and off work due to stress, and coping alone with three children they knew I was the more conscientious of my husband and I - and so it was me they kept hassling.
Gone are the days of the listening bank (midland). Don't get me wrong - lots of the general assistants there are lovely, but when it was beyond their job description the people I came across were like vultures.
My advice would be to contact something like the CCCS or payplan. I'm not sure they could help, but it's worth a call. Good luck to you
Kaz x

Another_1_Bites_The_Dust

Phoenix79 wrote:

I think you need to get loan with another provider (NR, Abbey, AA etc) and use it to pay off the managed loan.

Hi Phoenix,

Unfortunately I'm no longer able to get a loan with another company due to having this managed loan, that's half the trouble. I went to get a mortgage last year as at the moment I am paying £1034 rent & council tax each month and could well afford a mortgage, however, the financial advisor that I saw immediately said that I would be turned down for a mortgage until this managed loan is paid off. Absolutely ridiculous. I'm not in the process of writing to the HO of HSBC as I've had no end of problems with them - they not only 'mis-sold' me this loan, they've returned things unpaid on my account despite there being plenty of money to pay for them, ok I received an apology letter, but still not the point! They've just sent me photocopies of a whole bundle of cheques totalling £12,500+ that have absolutely nothing to do with me at all, and the banks wonder why identity fraud is on the increase! Grrrrrrr!