HSBC Managed Loan

jiml123

In Nov 2003 I fell into a deep depression.

As I had no income HSBC allowed me to build up a large overdraft of £3210. I contacted the CCCS for advice as charges were being made to my account. When I approached HSBC they said I had to take out a LOW INTEREST MANAGED LOAN otherwise my account would be closed and handed to a credit collectors.

For over 2 years I have not missed a payment and I have paid £48 a month Yesterday my current balance was £3022.17 and I found out the APR is 16.9%. :mad:

I have given them £1000 in interest and I still have over 120 payment to pay.

Can I complain? :mad:

HELP :-( Any ideas welcome!

lynzpower

do you have PPI
is the loan interest front loaded?

jiml123

No it isn't

CLAPTON

i afraid i can't really see you have specific grounds for complaining. what did you have in mind?

what is your current financial and general situation, are you now earning?

jiml123

Yes I've just got back into make Full time this month

jiml123

Yes started WORK full time this month (Jan)

alidadas

Thats strange as I had a managed loan with HSBC and the interest wasnt that bad. I dont know what the rate was but I took the loan of about £1100 in March 2005, was paying £50 a month. I went bankrupt in December 06 by which point I'd made 20 payments of £50 (£1000) and I had about £400 left to pay which would have been interest of about £300.

Have you spoken to HSBC to check thats right? Maybe someone messed up the original application and gave you a "proper" loan rather than a managed loan.

The whole point of a managed loan is to help people in financial trouble - if you've been paying for 2 years and the balance has only come down by £200 somethings not right. You have made approx 24 payments of £48 which totals £ 1152 - I cant see how they can take £1000 interest off.

Definately give them a call or better go into the branch to discuss this. It maybe that you need to increase your monthly payment. When I arranged my loan they just asked me how much I could afford to pay a month - I could have said as little as £5 a month and they would have accepted it but my H and I worked out we could afford £50 and they were obviously happy with that. I dont know if I had proposed a msaller amount whether the interest would have been higher. Definately contact them though.

jiml123

on the phone now for the 4th time - yes it's right

jiml123

HSBC have been screwing me over for 2 years