HSBC Managed Loan Nightmare

summer_james

Hey everyone,


Newbie here so please bear with me. I would like to know if any of you have had any problems with HSBC's managed loans. I note from older posts going back a few years that these loans are a nightmare!


My boyfriend took out a managed loan back in 2009 as he got into financial difficulty. Unfortunately last year he was out of work for three months (he is working now and has paid every month since and phoned at the time to explain his problem and paid a minimum of £100 per month to show he was trying to stay above board). Since then, he has been trying hard to overpay each month and catch up but what with the interest they slap on, it seems like it will never happen.


Recently in April he phoned HSBC and was told that they would "freeze" his loan for three months to help him catch up. I told him at the time that no bank just freezes loans for the sake of it and he questioned them to say this and stated he just wanted to continue to pay and he would try and catch up (working overtime etc. and throwing all his money at the loan). HSBC said they would "freeze" it and see where he is in the three months time. Now three months later, HSBC say they said no such thing and he is now over four months in arrears and they are about to instruct proceedings. I have said to my boyfriend he must complain and get a recording of the conversation where they said he doesn't have to worry as he has three months grace.


Has anyone else experienced problems with HSBC and these terrible managed loans?


I phoned the Financial Ombudsman today who said my boyfriend must put a letter in writing complaining and also he has a right to request the conversation (although HSBC can charge him for this) so this is what we shall do.


Any advice, managed loan stories would be appreciated.


Thank you!

BillJones

summer_james wrote: »

Recently in April he phoned HSBC and was told that they would "freeze" his loan for three months to help him catch up. I told him at the time that no bank just freezes loans for the sake of it and he questioned them to say this and stated he just wanted to continue to pay and he would try and catch up (working overtime etc. and throwing all his money at the loan). HSBC said they would "freeze" it and see where he is in the three months time

The above does not add up. You state as fact that HSBC said that they would freeze the loan, but then imply that you have nothing in writing to say so.

Do you mean that your other half told you that they;d freeze it, and that you chose to believe him, or were you actually on the call with him, and thus able to make the statement of fact that you are asserting?

summer_james

Oh harsh for a newbie I see!


As per my original message, I was there, my boyfriend isn't a liar if that what you're implying. HSBC are notorious for treating people like rubbish and not helping. And of course they said they would put in writing but we never received anything hence why I told him to request the recording.

ViolaLass

If he was throwing 'everything he had' at the loan in those three months, why is he now four months in arrears?

Pixie5740

If the call was recorded then you're BF can write to HSBC and request the transcript under the data protection act. I think HSBC can charge £10 for this...something around that figure.

summer_james

ViolaLass wrote: »

If he was throwing 'everything he had' at the loan in those three months, why is he now four months in arrears?

You've obviously never heard of a managed loan, the interest is crippling plus, he didn't have hundreds to throw at it!

Apart from the last comment, which I knew about already but am grateful for the response, I must say you all seem judgemental. It was a genuine question about managed loans but so far one person has implied my boyfriend is a liar and another is questioning about him throwing all his money at it. I feel sorry for anyone who is in debt and comes here for genuine advice.

R_P_W

summer_james wrote: »

You've obviously never heard of a managed loan, the interest is crippling plus, he didn't have hundreds to throw at it!

Apart from the last comment, which I knew about already but am grateful for the response, I must say you all seem judgemental. It was a genuine question about managed loans but so far one person has implied my boyfriend is a liar and another is questioning about him throwing all his money at it. I feel sorry for anyone who is in debt and comes here for genuine advice.

Stop being so bloody sensitive!

summer_james

R_P_W wrote: »

Stop being so bloody sensitive!

Yes, obviously my post was correct. I'm not "sensitive". Genuinely think you are awful. Simple question about a managed loan. I hope newbies see this and see how you all comment.

andycoll

i think they might of said we will freeze the interest for 3 months, meaning you still had to make the monthly payment.
And as the monthly payment wherent made you then went into defult

DevCoder

I confused, your boyfriend didn't want to freeze the loan (which hsbc were suggesting) because he could pay the existing payments and also "catch up" on the arrears.

So if he has been catching up on top of paying the monthly amount, how is he now in arrears? You can still pay even if hsbc were to freeze the loan.

HSBC are not "notorious" for treating people like rubbish, unless you want to give citation otherwise.

You do know the managed loan was to help you out in the first place as managed loans are for when people cannot handle their finances and end up not being to able to pay their debts, the managed loan provides a way of repaying the debt over a time period dictated by the bank. But its nearly always the best solution for the customer.

bigadaj

summer_james wrote: »

Yes, obviously my post was correct. I'm not "sensitive". Genuinely think you are awful. Simple question about a managed loan. I hope newbies see this and see how you all comment.

Not sure what you want really, sympathy, all banks are horrible or some constructive advice.

Basically your opening post in terms of what to do and the process is fine, complain to the bank, put in a request for the recording. Then go to the ombundsman if not resolved to your satisfaction.

The bottom line is that this type of loan is offered to those with a poor credit file and therefore the higher risk this entails means higher charges and interest. Simplistically people never have problems when the money is handed over to them, only when lack of payment means they run into problems down the line and unsurprisingly default with the consequences that go with it. The obvious answer is to get a better loan somewhere else and pay this one off but this presumably isn't possible, again given the nature of the credit file.