Managed Loans from HSBC

LeahDyl

Has anyone any experience of managed loans? The bank suggested one to me but I'm not so keen as I know the interest is very high. Also would I be able to convert it back to an ordinary loan when I was ready to? Thats the impression I got from the bank but I'd like to be garunteed of this before I took one on. I'm just considering it as on option for a few months until I'm back on a level field with my finances.
Any advice appreciated.

movingforward2010

ive had one of these, they told me to that i would be able to convert back, however i would have to pass credit checks - and it was obvious i wouldnt get a 'normal' loan with them again.

paying £110 a month over a period of 11 years:eek: £56 a month was interest:eek::eek:

penguin83

Avoid like the plague. I got one of these pre MSE days and regretted it! Ridiculously high interest rates. There was a thread about them recently - I'll just see if I can find it x x x

Here is one of them

Have you taken any advice from the CCCS or similar x x

boredofbeingathome

I would second that - avoid if at all possible.

Superheavy

If you're being recommended a managed loan it probably means your behaviour score will probably be pretty low, so other lending would seem unlikely. If there's another way around it then I'd try that avenue first.

Ask if the CCS will put some sort of guarantee in writing that you could convert back to a normal loan when you choose.

Cleosmum

Another avoid here. Im nearing the end of my managed loan with HSBC and whatever they tell you they do not convert it back to a normal loan. It also restricts your account. You will no longer be able to have an overdraft, even a temp one and you will need to give up any switch/maestro/cheque guarantee card and accept either a cashcard or a solo card. My original loan was £1500, a debt my ex husband kindly ran up on my mastercard, and I was left to pay it, the bank told me my only option was a managed loan and Ive ended up paying back twice the original amount.

in_debt_again_but_dealing_with_it

Have to agree with all of the above, they really are just a con. The HSBC matched my dmp payment with a managed loan (all my debt was with them), the loan added interest at source and my debt would have almost doubled immediately! Thanks to the CCCS I avoided it, get some advice there are alternatives.