Help with HSBC Managed Loan

Julie67

Morning all,

I'm looking for some advice on a Managed loan we had with HSBC starting in 2010. At the time we were struggling to make ends meet and had a debt of around £17,000 with HSBC. This included overdrafts, a personal loan and credit cards.
HSBC suddenly decided we had to pay back all outstanding amounts within 14 days. Obviously we panicked and I feel we were very much bullied into taking out this managed loan.
Fast forward 7 years and we are now on a Self Managed DMP. The debt has been sold twice and is just above £12,000.
My question is, has anyone successfully challenged being sold the managed loan in the first place?
I'm a lot more informed than I was then and feel this loan was mis sold. I wondered if anyone could point me in the right direction of challenging this and if anyone has had a successful outcome.

National_Debtline

Hi Julie67,


If you want to challenge this then you would need to make a formal complaint to HSBC and outline how/ why you feel this was mis-sold and how you would like them to resolve the situation. If they don't do this to your satisfaction then you can go up to the Financial Ombudsman Service to have the situation looked at again.


However, there may be some hurdles for you to overcome here. Firstly, what evidence do you have that you were bullied into taking this out? Whilst overdrafts are recallable on demand, most loans and credit cards are not like that, unless you were in arrears and a default was being issued. If that is the case, then it may be harder to argue that the loan was mis-sold if it was offered as an alternative to defaulting, but the devil will be in the detail here.


Your best option is to complain and ensure you include as much detail and evidence as possible to support your case. Good luck,


Laura
@natdebtline

Julie67

thank you for the reply. Would it still be possible to complain despite the loan being sold on twice and HSBC are now part of Santander from what I understand

StopIt

HSBC are very much not part of Santander!


Abbey National and a few other banks have been swallowed by them, but not HSBC.


It's always possible to complain about this sort of thing, but before you do, seek independent legal advice from the CAB or your friendly solicitor to assist you in making your case before going forward.


Of course, the 14 day notice is usually just part of the procedure of default and as you're in a DMP now, the effects would have been the same. The debts would have been sold like the loan has been now.


If you felt like you were given no option other than to take this loan, then use that as a basis of your complaint. If they merely used scary language like "If you don't take out this loan your accounts will default and you'll be at risk of court action yadda yadda" then they would have been correct, but you would have still have been free to tell them to get lost.

National_Debtline

Hello again,


The complaint would need to go to the original lender, and I would agree that you may also want some legal advice about this first. There are lots of places you can use, one could be a law centre as they can offer cheap or free legal advice www.lawcentres.org.uk


I am also not aware of any links between HSBC and Santander, so don't worry about that.


Laura
@natdebtline

Julie67

stopit sorry i was thinking of Abbey National
I'm going to dig out all the original paperwork. Thanks

StopIt

Julie67 wrote: »

stopit sorry i was thinking of Abbey National
I'm going to dig out all the original paperwork. Thanks

The worst answer you'll get is "no", so get digging, get some independent advice and go from there.


Good luck.


Edit: Don't worry, the banking industry is full of incest!


I bet the vast majority of people have no idea that Halifax, Bank of Scotland and Lloyds are all part of the same group, or that RBS own Natwest, that First Direct is part of HSBC and so on etc.