HSBC Managed Loan Help Urgent

lids_2001

I have a managed loan with HSBC for an initial amount of £29,060. I signed the agreement on 3/4/2006, for a payment of £380 per month over an approx term of 11.5 years at an interest rate of 7% p.a. over the banks base rate.

After 15 months I had only paid £750 off the capital. This is when i decided that i was getting no where, so entered into a DMP for £50k to cover other debts as well. HSBC refused to accept the repayments and continued to charge interest.

I have now written to the CEO of HSBC and filed a complaint with the financial ombudsman, regarding miss-selling of this loan under duress.

I understand that HSBC should have informed me that this loan was not covered by the Consumer Credit Act 1974, they did not do this. What can I do about this?

Secondly I have received a reply from HSBC, and they are offering me a compromise. They will refund the interest charged since September 2007, when they were contacted by CCCS. This will be passed on to their Debt Collection Department where the interest will be frozen and they will agree a lower repayment.

What should I do? The offer from HSBC is tempting, but I would like to have all the interest refunded and this would reduce my debt by almost 5k.

HELP

itsnowtime

Hi,

Not sure I can offer any advise really but thought I would bump it up into the forum for you to see if anyone else can.

Sorry

fatbelly

Can you not do both?

Accept the offer to freeze interest and to backdate it

And persue a claim for mis-selling?

Sea78

What have the CCCS said you should do?

Sea xx

lids_2001

If i accept offer it will be a full and final settlement in response to my complaint.

CCCS say I should accept, but I am really angry with HSBC over the whole affair and want retribution.

I feel like i was conned into taking the managed loan.

Sea78

I can understand how angry you must feel - it's a difficult situation for you. As an outsider, who is not emotionally involved, I would have to say that I think i would be most prudent to accept, however, I can so see why you are feeling angry enough not to do this.

fatbelly

It's not a full and final settlement deal - that's where you offer a significant percentage of the debt (say 30-50%) as a lump sum and the rest is written off.

This is just them offering to do what they should have done anyway - stop charges and freeze interest when CCCS got involved.

It's nothing to do with whether or not the loan was mis-sold. I'm not sure what you would be claiming they should or should not have done but it's probably worth a punt. Have a look at

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

lids_2001

I have filed a complaint with the financial ombudsman, but my concern is that if i agree to this settlement. Then as far as the FO is concerned it is dealt with and they will not investigate further.

tyllwyd

What do CCCS say is the likelihood of you succeeding with your complaint with the financial ombudsman - and what is the likely outcome if you do win?

What is the alternative if you don't accept this offer and the ombudsman doesn't agree with your complaint - are HBSC likely to freeze interest etc in those circumstances?

Before making your decision, you should be really clear about what the best and the worst possible outcomes are.