HSBC Managed Loan

ROBINSHIRLEY

I was actually wondering if it is possible that a managed loan could be mis sold.
I found myself in a debt spiral in 2009. I approached CCCS (Stepchange). A DMP was arranged for me. All my creditors were brilliant and accepted, except HSBC.
I had a loan, credit card and overdraft with them. They refused to accept my offer of £216.64 to repay these debts. They reason they gave was that my circumstances hadn't changed. My circumstances hadn't changed, but I'd maxed out all my cards and had no money to pay my household bills after paying all the credit bills.
Stepchange advised me to sit tight and ignore the banks threatening calls and letters and stick to my offer.
I eventually gave in and signed their paperwork as I was just so fed up with their bullying. I actually felt intimidated by them.
This managed loan paid off the original loan, which was interest front loaded so it was mostly capital left , in doing so they just added a load more interest. I realise this is something they are able to do to people with debt problems, although I don't see this as treating customers fairly and sympathetically as the FOS recommend.
The reason I think I may have been mis sold is that they knew I was unable to make the repayments as I had this DMP. Not being able to repay the full amount each month now means I'm always in arrears, which means I am continually defaulting on the loan. They still call me from time to time asking when these arrears will be cleared? I explain time and again as my debts drop off there will be funds in my DMP to bump up the amount I pay them. The caller told me that they can take me to court due to the arrears, but they are unlikely to take this route as the amount is relatively low.
Sorry I have gone on a bit, but I would really appreciate any advice on this.

Nargleblast

As you still have a DMP with Stepchange speak to them.about this. Explain it just as you have on here, they will understand the pressure you were under to sign up to this "managed loan". The same organisation tried to persuade me to take out one of these loans and it sounded a reasonable solution, but I ran it past Stepchange ( when they were CCCS) and they pointed out the bank could move the goalposts and change interest rates and add on charges at any time. I politely declined the offer, stating I had been advised not to take out the loan. The bank was not happy but I refused to answer their calls, just stuck with my DMP payments, and everything settled down in time. Maybe Stepchange can review your DMP? It's worth a try.

dancingfairy

Well you're sort of in the same position as you were. You can't meet the contractural minimum payments. Are you making any payments on this loan at all?
You could
a) stop paying it altogether and wait for them to send it to the collections department who might be more reasonable and then add it to your dmp or
b) add it to your dmp as it is now.
In addition to that you could also look into making a complaint and whether the product was suitable for you. If you don't like their response then you can complain to the FOS.
Either way it seems like the best solution is to get it added to your dmp?
Explain to your provider the issue and the circumstances and the pressure you were under. If they can't add it on then you go with a different free provider or do it yourself.
df

sourcrates

As DF says, if you believe you were forced or felt pressured to take the loan, simply put in a formal written complaint, if no joy after 8 weeks, take to the FOS.

ROBINSHIRLEY

Thank you all so much for your replies and advice.

The managed loan is included on my DMP, thats the reason why the repayment is less that the loan requires, as you know, funds on the DMP's have to shared out in a certain way.

Although Stepchange have been brilliant they wasn't at all happy that I agreed to this loan, and wasn't really to provide any further advice.

DancingFairy - I had;nt thought about it this way, but you are completely right, I am still in the same position, even though I've paid off 13,000 of this loan.

I have complained to HSBC about this loan and got absolutely no where, they actually said they have no evidence that I received harassing phone calls and they take the view that by offering this loan it was the best solution for me.

I think my best option is to take it to the FOS.

sourcrates

ROBINSHIRLEY wrote: »

I think my best option is to take it to the FOS.

You only have six months from the banks final response to take to the FOS.
If it's been longer than this, put the complaint into the bank again.