HSBC woes

amjack

Hi all, new member and first time poster here, just wanted to share my story.
Back in 2001/2002 I got a job working in HSBC customer service. As soon as my training period was up, I was offered a lot of cheap products, and since it was coming up for Christmas I went straight for a personal loan on staff rates. This was organised and paid into my brand new HSBC bank account (because for some reason they wouldn't pay wages into any other bank's account, so all staff had to open an account with them. Sneaky, huh?). When I left the company, the loan was converted into "normal" rates rather than staff and I continued to make my payments.
I then moved cities and got into a lot of financial difficulty. HSBC increased my overdraft to £500 which helped for a time, but the inevitable happened and I started to default on my load repayments. After some fright, worry and negotiations, they consolidated my £5k loan and overdraft together into the infamous HSBC Managed Loan.
I've been paying this off at £70 per month ever since. It hasn't been easy, I've chosen to "go without" things like clothing, leisure activities etc rather than risk defaulting on payments (never have, touch wood), but with £50 interest being taken each month, it's taking forever to repay. I was told that in April I could apply to have it converted to a "normal" personal loan, but because I'm a stay-at-home-mum (my 'income" comes from my partner each month) and am unemployed, I'm unable to get a normal personal loan to repay the balance remaining on my Managed Loan.
I'm so sick of HSBC. I feel trapped in having my bank account with them, not to mention the managed loan itself. I have no way of repaying the amount any time soon, and with £3920.25 to repay (with about £50 coming off in interest each month), it's like I'm only paying £20 each month. I was 19 when I got myself into this mess, yet it looks as though I'm going to continue to be punished for it until I'm nearly 30.
Does anyone else have any horror stories about Managed Loans? Or even any good stories - is there any light at the end of the tunnel?!
Thanks for reading, if you got this far, and good luck to everyone with their debt.

amjack

*bumps sneakily*

Fortheloveofmoney

Welcome to MSE. I don't know anything about managed loans so can't give specific advice however I would recommend doing an SOA (statement of affairs) of all incomings and outgoings. I think the thread is at the top of this forum.

You if feel you want some advice on where to cut back or how to save money then post it on here and the good folks will help you out. You don't have to post it here but it helps you to see the whole picture of where you stand financially.

Without knowing any details it's really hard to offer advice but it does sound as though you want this paid back sooner rather than later. Take a look at Immoral Angel's diary for inspiration on how to pay back debt with little income.

Good luck!

delboypass

1 approach is to write to them telling them your in dire financial straights and to immediately freeze the interest.

THen pay it back..

otherwise tell them your going to Payplan or something and they will negoiate a lower payment as basically you get no income they would get nothing.

ANDENA

amjack wrote: »

Hi all, new member and first time poster here, just wanted to share my story.
Back in 2001/2002 I got a job working in HSBC customer service. As soon as my training period was up, I was offered a lot of cheap products, and since it was coming up for Christmas I went straight for a personal loan on staff rates. This was organised and paid into my brand new HSBC bank account (because for some reason they wouldn't pay wages into any other bank's account, so all staff had to open an account with them. Sneaky, huh?). When I left the company, the loan was converted into "normal" rates rather than staff and I continued to make my payments.
I then moved cities and got into a lot of financial difficulty. HSBC increased my overdraft to £500 which helped for a time, but the inevitable happened and I started to default on my load repayments. After some fright, worry and negotiations, they consolidated my £5k loan and overdraft together into the infamous HSBC Managed Loan.
I've been paying this off at £70 per month ever since. It hasn't been easy, I've chosen to "go without" things like clothing, leisure activities etc rather than risk defaulting on payments (never have, touch wood), but with £50 interest being taken each month, it's taking forever to repay. I was told that in April I could apply to have it converted to a "normal" personal loan, but because I'm a stay-at-home-mum (my 'income" comes from my partner each month) and am unemployed, I'm unable to get a normal personal loan to repay the balance remaining on my Managed Loan.
I'm so sick of HSBC. I feel trapped in having my bank account with them, not to mention the managed loan itself. I have no way of repaying the amount any time soon, and with £3920.25 to repay (with about £50 coming off in interest each month), it's like I'm only paying £20 each month. I was 19 when I got myself into this mess, yet it looks as though I'm going to continue to be punished for it until I'm nearly 30.
Does anyone else have any horror stories about Managed Loans? Or even any good stories - is there any light at the end of the tunnel?!
Thanks for reading, if you got this far, and good luck to everyone with their debt.

well i can not believe hsbc can treat their staff like that mind you nothing suprises me.i paid my mortgage off last october £35,575 they gave me cup of tea and ever so polite,i thought great no more worries then 1st of nov i get phone from india i presume saying i was overdrawn by £303 i said i cant be i have paid mortage off. he said he did not know anything about that but i can see your wages had gone in £253.00 a fortnight i get paid and he said he has took that plus he wanted to take money out of my instant access savings i told him he better not do thati got his name and it was 9pm and you should not ring at that time,next day iwent into branch fuming i had no money to pay bills they gave me £350 overdraft for 2 months i had money refunded from mortgage it took me a long to get back to normal i asked month if i could have £100 overdraft to pay gas and elect and they said no, reason for this was managed loanso so nothing would suprise me how hsbc treats their exstaff and custumers

ANDENA

ANDENA wrote: »

well i can not believe hsbc can treat their staff like that mind you nothing suprises me.i paid my mortgage off last october £35,575 they gave me cup of tea and ever so polite,i thought great no more worries then 1st of nov i get phone from india i presume saying i was overdrawn by £303 i said i cant be i have paid mortage off. he said he did not know anything about that but i can see your wages had gone in £253.00 a fortnight i get paid and he said he has took that plus he wanted to take money out of my instant access savings i told him he better not do thati got his name and it was 9pm and you should not ring at that time,next day iwent into branch fuming i had no money to pay bills they gave me £350 overdraft for 2 months i had money refunded from mortgage it took me a long to get back to normal i asked month if i could have £100 overdraft to pay gas and elect and they said no, reason for this was managed loanso so nothing would suprise me how hsbc treats their exstaff and custumers

have a look on my issuess about hsbc managed loan