HSBC managed loan

crystaltips68

Hi all,I really need some advice, as I am so confused by HSBC at the mo....I have a managed loan with HSBC, which I have been paying for 3 years at 99.23 a month. I feel that I was harrassed into the loan originally, I had a credit card, overdraft and personal loan with them, which they willingly upped even though I work part time and am a single parent, but anyhoo thats another bugbear..... I was struggling to keep up payments on each, and did defer a couple of payments, this is when I started receiving phonecalls late at night etc from HSBC. It stressed me so much i went to my local branch and they talked of consolidating my debts into a managed loan and I thought at the time it was the best option. The interest rate was not explained to me at all and I just wanted to try to organise my money, so i went along with it all.The loan was set up for 72 months[6 years] at the above monthly amount.The original loan was for 4610 pounds and I managed to pay a lump sum off of 500 pounds.I have just received my yearly statement and i still have roughly 2500 pounds to pay off.The interest every month appears to be almost half of my monthly payment....I could cry.....I really don't know what to do......Could anyone please help me, any advice welcome...crystaltips

TinaT_2

I started a thread which was asking people what they thought as - HSBC Managed Loan & PPI in December. Please have a look at it? The interest rate is extortionate. I'm also a single parent and had financial problems at the time & the interest rate etc was not explained to me either. I am writing to Head Office to complain & possibly taking to the Ombudsman if not fairly resolved

jubi_2

I think some real advice is needed on this issue-my daughters husband lost his job and took a managed loan to help them out of a spot. He really did not understand what was being sold them.
£23,000 three years later at £250 per month is still £18,000-this loan has kept them really poor and last year I helped them with the aid of this site to claim £2,000 back in bank charges.They have always paid the installments but now we need to pursuade the bank to give them a reasonable interest rate. We are now going to tackle this.
The problems ahead are big but I beleive the banks must take some responsibility for lending amounts to young couples and then keeping them in debt.
Fair advice would have pointed out the options? People still beleive that a bank manager will act in their best interests and that is what I believe is key to this. If anyone can help please let me know.

Pleasemakemerich

I too had a managed loan with the HSBC, but it appears that my circumstances were different, they froze the interest at 6.75% for the life of the loan, so I knew how much I had to pay and when it would be over!

The loan was as a result of overdraft and loan defaults and this was regarded as my "last chance saloon", so that part is similar.

crystaltips68

I have just read your thread, Tina.... I am ready to fight this now, i will start with HSBC and then like you, go to the ombudsman.
Its appalling that HSBC do this to people on low incomes, who are already struggling, and as other people have said it appears to be unethical.
i did go to Hsbc last week and ask about a new loan with better interest, but was quoted one at 19.9 per cent.....I declined
Thank you all for your info and I am willing to get involved with any campaign for this.
crystaltipsx

TEDDYRUKSPIN

Ok. Once again, think about what was happening before you got to this situation? Who fault was this? You had no money in your account and your direct debit were getting bounced. You had no money in your account but you kept on going to the atm to withdraw money. When you got the charges you shouted at the member of staff as you told them you were getting ripped off. When reality set in, you asked for help.

Who fault is this?

HSBC can only offer managed loans as last resort. I do believe this is the worse option available but it has it's benefits. It stops you borrowing from the bank and tries to get you to repay back.

But guess what? As you are a constant debtor, you still go out to get a credit card etc and it spirals out of control again as you don't have your overdraft? Very vicious cycle right?

HSBC managed loans are rubbish. Worse interest rates ever and probably stretched until you retire.

I really doubt the ombudsman will help you at all on this. They have not cheated you in anyway as if you handle you account well with the managed loan, HSBC will switch this back to a cheaper personal loan.

What to do? I would get a cheaper personal loan elsewhere and cancel the managed loan. No other answer.

Or? Get a better job? More money? Stop going on JSA or alike?

itsnowtime

TEDDYRUKSPIN wrote: »

Ok. Once again, think about what was happening before you got to this situation? Who fault was this? You had no money in your account and your direct debit were getting bounced. You had no money in your account but you kept on going to the atm to withdraw money. When you got the charges you shouted at the member of staff as you told them you were getting ripped off. When reality set in, you asked for help.

Who fault is this?
But guess what? As you are a constant debtor, you still go out to get a credit card etc and it spirals out of control again as you don't have your overdraft? Very vicious cycle right?

What to do? I would get a cheaper personal loan elsewhere and cancel the managed loan. No other answer.

Or? Get a better job? More money? Stop going on JSA or alike?

Can I just ask - do you work for a financial organisation. Having read some of your other posts today on the DFW board relating to the same issue, I feel that your comments are very harsh, judgemental and quite condescending.

jubi_2

Just received paperwork for daughters managed loan. Payments £250 per month interest £200 per month. Nearly fainted. Going to read again incase mistaken . Can't possibly let this go let me know if anyone else is fighting this situation as its nice to have company.:mad:

TinaT_2

Teddyrukspin – As you say “HSBC managed loans are rubbish. Worse interest rates ever and probably stretched until you retire”.

However, the other comments you have made are very judgemental. As I replied to you in my own thread, you are incorrect with these assumptions about my own case. Therefore you may well be being unfair and incorrect about the others. Anyway, in blaming people for their difficulties in handling their money just serves to detract from the main issue and focus, which is that HSBC are abusing their most vulnerable customers and making exorbitant profits by doing so.

Before Martin Lewis and the successful campaign to re-claim excessive bank charges such problems were blamed on customers ‘who couldn’t handle their money’. In fact it was that the banks were making huge profits from the most financially stretched people and causing them to have even worse problems as a consequence. That has now fortunately been well challenged and changed.

Our society has been conditioned and mislead to believe that high street banks treat their customers with respect, integrity and loyalty. We believe that they are far more honorable than loan sharks. Obviously not! These managed loans are immoral and need to be challenged and stopped!

Jubi – I have read your posts and sympathize. It would be good to work together on this!

Jubi & Crystaltips68 – I have been really busy & not had time to find out who and where to write to HSBC about this. I will do so asap & post. I’m also thinking about posting a draft letter.

Itsnowtime – Thank you for your support!

deano8000

'managed loans' are there to help the ppl who are in financial trouble, you will probably find that if your situation is that you have had to take one of these out , then you would probably struggle to get a loan elsewhere. Most big banks will have a similar loan with a higher apr, and the reason why they offered you this at this rate is that because of your financial situation, they see you as a risk to their business, ie that if your still struggling you may default and be unable to repay the loan and the bank will lose out so they stick a higher apr on the loan so they can claw back any losses. Its like when you buy something from a catalogue or the company Crazy George or Bright homes (not sure if thats the right name) they charge a higher rate of apr and prey on the ppl they know cant pay out right.

Keeping_Positive

I think TeddyRukspin should be barred from the DFW board. He makes judgemental unhelpful posts and is now going to be on my ignore list.