Managed loan

DannyBo

I have a 'managed loan' with HSBC. I took out the loan 9 years ago to consolidate a credit card, overdraft and a previous smaller loan. I have a further 4 left to pay. The payments are £79/month and I think the original amount was for £5000 a I no longer have any paperwork relating to the loan and a few weeks ago requested a copy of the agreement. Now, a few weeks later I have been informed that the bank does not have any copies. I initially wanted to question the PPI but today was assured that no PPI is added to 'managed loans'

My main concern now is, the amount already paid is close to £8000 and the are 4 years remaining. I am unable to make higher payments even if I wanted to - the only way would to be, to pay off the remainder in full. I'm curious as to why the bank have no copy of an 'active' unpaid loan. They cannot send me a general terms & conditions for managed loans as each customer's t&c vary.

About 5 years ago I tried to convert the loan into a standard loan, after seeing the yearly statements showing £45 interest being added monthly. I was unsuccessful and considered high risk.

I will be requesting the £1 copy they must produce within 12 days under the CCA

I'm just wondering if anyone has had any kind of experience with these managed loans, to have to repay £10000 on a £5000 albeit with a 13 year life span just seems crazy, with hindsight

Any input or help would be greatly appreciated

[Deleted User]

DannyBo wrote: »

the are 4 years remaining. I am unable to make higher payments even if I wanted to - the only way would to be, to pay off the remainder in full. ......


...........Any input or help would be greatly appreciated

Option A - pay it off in full
Option B - keep paying monthly to the end of the term

A would be preferable and cheaper.

maginot

It sounds like you have a good interest rate if you only have to pay 100% of the loan over 13 years.

You need to post an SOA to see whether you can overpay. The loan is only £79 and I'm sure you can save £10 a month if not more, which would significantly help reduce the loan term.

However I would not recommend any further borrowing, as you only seem to have a small amount if disposable income and don't want to be wasting this on interest.

tyllwyd

If you would be able to make higher repayments, but it is to difficult to change the actual loan, why not save the difference in a separate savings account, then when you've saved enough of a lump sum you can use that to pay off the remaining amount.