Management Loan HSBC

royal_2

Hi,

Around 3 years ago, I left a job on medical reasons. During this time I was signed of by the Dr for approx 2months.

I had a normal loan with the HSBC and went to ask for help as I knew I wouldn't have an income for a short time. As the loan had protection I thought I may get a month or two's payment holiday. This was not the case and I was advised and pushed in to taking out a high interest loan with a very low monthly payment over 11 years for 6k to help me in the short term, the bank said this was all that they could do.

Whilst I was struggling I felt that I had no option but to take this up as I did not want a bad credit scoring. (This loan is undetected on the equifax system) any how after paying this for three years £100 per month and only 50% being taken off the capital (huge interest rate) I am considering to fully re-pay it as I am now financially stable and in full time work.

I did re-visit the branch to say that I had been mis-sold a product during a time when I was vunerable. They completely disregarded my complaint and I walked out and closed my current account with them. The loan is still standing however.

Now a little older and wiser I feel like am owed the interest they have charged me over this three years and ready to make a further formal complaint. Does anyone out there know a way around this and how I ought to go about retrieving the money?

Any advise would be greatly welcomed... :-)

The question I have is do I have a right to have some of the excessive interest I have been charged?

tom188

What is the excessive rate?
With all loans the first few years you mainly pay interest back with very little capital, as you have a fairly constant repayment throughout the term. and it is only in the last couple of years that the majority of capital repayments are made. indeed with a mortgage you only repay your 1/2 your mortgage after about 18 years.

Without knowing the full facts and terms of the loan it is very difficult to see what part of the loan you were "mis sold".

If you were made aware of the rate you would be paying and the repayments, and agreed to them I cannot see that you have much in the way of grounds for complaint. Just because a rate is high does not mean that you should be entitled to a refund.

royal_2

Thanks for the info.

The interest is charged on a daily rate at approx 29-30% interest. As it is a manged type loan it means the details stay with teh bank only.

The main point, was I had protection on the origional loan and asked for help or a payment holiday, this is when they advised the managed loan to me.

You are right by saying they showed me the details and I agreed to them however, under medical conditions and unable to work should have meant that the protection I had would have covered me? this did not happen and in desperation I took out the longstanding loan.

The more I pay off the managed loan the less interest I pay on the total ammount.

Checking it out on a recent statement £45 = paid off the total figure and £55 is paying interest. the 6k is now about 4.8k.