HSBC Managed loan about to default

Drausus

Hello all,
12/2005 I was tricked into taking out a managed loan to pay back my overdraft/credit card and another loan because I had just lost my job at the time, and I was about to start another job but they refused to delay my repayment until my first wage and told me my only option was to take out a managed loan to consolidate and allow me to start payments in 2 months, so I agreed being younge and dumb and I had been replaying £103 a month.

I lost my job last year in August so I phoned HSBC and asked if they could delay my repayment for a month hoping I could find a job before my next payment was due in September, Nice guy agreed and canceled my standing order and asked that I phone in October to reinstate the SO and arrange to repay the missed payment, October came and still unemployed so again I called, This time I was passed to their collection team, They asked that I pay £10 for October and to phone them the next month, same call again, no job and was asked to pay £10 again. I have had to do that every month so far up to today as still after trying so hard I am still unemployed :-(.

So today I received a call from their collections department, first question was can I pay my missed payments right now, I laughed and informed him that I was in a agreement with them to pay £10 at the end of this month so NO I cannot pay £500 odd, He then said that he had to transfer me to their financial guidance team.
I then spoke to a really helpful lady who asked for all my income details, after which she decided to cancel my payment for this month of £10 as she could see it was hard for me living on JSA to even make that payment (shocking). She then asked that I give them a call in 2-3 weeks to update them on my situation, but warned me after 7 payments had been missed the loan would then be passed to their metropolitan office, and that was 6 weeks away.

Now question is about my current account with them, I did ask while on the phone what would happen to my current account if my managed loan account was passed to metro, she said that because that account was in credit nothing would happen to that account and I would still be able to use it.
After reading so many posts on here about HSBC I do not know if I should believe her and I am worried I may lose my bank account with HSBC. I was thinking that if they have to default my loan account, they will want to close my other accounts with them. Is it time to open a different account with another bank to ensure to do have access to a account, or would they leave my current account open do you think?
Also does anyone have any experience with HSBC Metro, I am hoping that if it does get passed to them, that they will allow me to pay a token offer (£10) each month until I can get myself employed.
Thank you for taking the time to read this long post.

Allypops

Hi, I am sure someone much wiser than I will soon be along to give you some sound advice. However, I would say that you shouldn't bank where you have debts due to the possibility of off-setting.

There is a guide about setting off on the mainMoney Saving Expert website:

http://www.moneysavingexpert.com/banking/setting-off

I hope that helps.

Allypops

camuk81

Drasus, I worked for another arm of HSBC, from past experience I would have a spare account in case and be wary.

cross789

Hi I don`t have that much experiance but I did have a managed loan with HSBC the first thing they did was take my visa off me and gave me a metro card which works the same as solo that each transaction is checked and if you do not have sufficent funds in your account they decline the payment and they took my cheque book off me. Basically they treated me like a child.

I was told I would have to pay 107 a month for 11 years when I found I was still struggling as my other half was off sick I ended up with a debt management plan all the other creditors accepted but HSBC refused the payment option that was given to them so they kept sending me nasty letters and ringing me up finally they passed it on to More croft debt collection company and they accepted the payment of 46 a month.

The only thing was as they changed my loan to a managed loan they defaulted me and that was 5 years ago so stil dealing with the aftermath. I don`t think they will close your accound as they left mine alone but if yo have gt credit in it expect them to take it with out warning to go towards your loan as they are leagaly allowed to off set any credit hpe this helped a little

Drausus

Thank you all so much for your replys!!!
I know HSBC have been known to be a nightmare, but they have been very understanding so far to my situation and I would thank them for that. I Have just opened up another bank account so that my benefits/future wages can be paid directly to that account.
I did ask the last person I spoke to If money could be taken from my HSBC current account when my benefit is paid into it, she did say yes it may, but to phone her directly and she would transfer that money back to my account. My fear was when the debt gets passed to metro that they may also have the power to just take from my account, It is a shame as I have been with HSBC for over 12 years. I do not want to run away from this or anything, it is my fault (not the being made redundant part) I am just hoping if it gets passed to metro they will allow a small repayment for awhile until I can get back on my feet and start to repay a sensible amount, I guess one way to look at this is that I am now escaping all that interest a managed loan charges, But they have collect 6 years worth of interest so far.

Mr_Donnelly

I have had a managed loan with HSBC since 2009. I never applied for it - it was a consolidation of a current account overdraft, a credit card and a professional studies loan. My debts at the time were being managed by the Debt Support Network, part of Compensational Professionals Ltd, whom I have since learnt were closed down by the Office of Fair Trading in 2010, though I wasn't told that at the time. I am now with Immediate Financial. I have to send money to them, who forward it by cheque to HSBC. It has to be paid into a current account and transferred by standing order into my managed loan on a set date each month. If it is paid early the payment is not recognised as contractual but an overpayment. I have written to the money section of the Guardian - the correspondent there has replied stating that this situation is ridiculous. I agree with this, which is why I can't understand how HSBC get away with it. I have referred the matter to the Finacial Ombudsman Service, and I have written to my MP who has contacted the Chief Executive of HSBC. I have also written to the BBC - Panorama, Inside Out etc. but had no reply.