We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
🔔 You've got till Monday to apply to become an MSE Forum Ambassador

Desperate for Managed Loan Advice

bb23
bb23 Posts: 91 Forumite
i've paid over £3,000 in interest ALONE on my managed loan, it started at £10,000 in August 2004 due to me losing my job and being unable to pay by my standard loan and credit card - i was so desperate i agreed without really listening to what they were saying

Currently is only now down to £8,000 over 4 years - that means i've spent MORE in interest repayments than i have on paying back the Loan!

im thinking about speaking to the citizens advice or a lawyer and writing a letter to the bank, explaining the aweful circumstances that they pushed me into taking out that loan and then charged these extortionate and unfair rates

try and get them to pay me back the 3 grand, and ask them to put it into the managed loan.

its a HUGE task but i'm sure as their customer and consumer i have some sort of right!

has anyone got any advice on where i need to start with this
Debt at start (Aug 2003): £13,500 >>Debt Now (Aug 2013): £3,104
HSBC charges WON (april 07): £1,103.00
HSBC PPI WON!!! (July 08): £1,166.00
HFC PPI WON!!! (August 08) £2,100
«1

Comments

  • Rafter
    Rafter Posts: 3,850 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    You might think you have been hard done by - but the loan doesn't look extortionate.

    If you do the sums on a mortgage you end up paying over twice what you borrow with interest.

    Your main thing is now you have a good payment history and presumably better income you try to get the loan paid off faster or shifted elsewhere where you aren't paying such a high rate?

    Unless you are really struggling to meet payments, citizens advice won't be able to do much.

    R.
    Smile :), it makes people wonder what you have been up to.
  • bb23
    bb23 Posts: 91 Forumite
    i pay 135 a month in repayment and have to pay 80 in interest each month!

    i think thats pretty tough! it means effectively i'm only paying £55 a month on a 10k loan
    Debt at start (Aug 2003): £13,500 >>Debt Now (Aug 2013): £3,104
    HSBC charges WON (april 07): £1,103.00
    HSBC PPI WON!!! (July 08): £1,166.00
    HFC PPI WON!!! (August 08) £2,100
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    whats the APR of the loan?
  • bb23
    bb23 Posts: 91 Forumite
    It's 9% above base rate (something they don't tell you when you take it out in desperation) - its 14.5% at the moment i think. I took it out when i lost my job nearly 5 years ago (i have a good stable one now of course) because it was the only way i could stop myself going completely downt he pan, HSBC just push it on you if your struggling - so many people over on the CAG message boards have had the same trouble.

    Im trying to gather as many personal stories abuot HSBC's managed loan as i can now as it seems no one was correctly 'sold' the consolidation loan when they first had to take one out. in my eyes its extortion/exploitation and even mis-selling because they prey on the weakness of men/women in serious debt and DON'T explain the high interest - i will STILL be paying mine of in 2016 at the rate i'm going, by which time i'll be 36 years old and i took it out at 24

    that's just craziness!
    Debt at start (Aug 2003): £13,500 >>Debt Now (Aug 2013): £3,104
    HSBC charges WON (april 07): £1,103.00
    HSBC PPI WON!!! (July 08): £1,166.00
    HFC PPI WON!!! (August 08) £2,100
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    I wish you well in complaining about the loan

    however if you wish to pay it back more quickly then you need

    a. to pay more each month... check the T&Cs to see whether the extra money reduces the total interest

    and/or
    b. refinance the loan with one with a lower interest rate... whether this is feasible depends upon your credit rating and income of course
  • Rafter
    Rafter Posts: 3,850 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    14.5% is not an extortionate rate of interest.

    Given you had no job at the time you were offered it it was actually quite generous, given the risk that you might never be able to pay the money back.

    If you were paying say 200% interest then a court might start to get interested.

    You just need to work out how to pay it off faster by spending less, earning more or shifting the money to somewhere with a lower interest rate.

    Now if you were 'sold' the consolidation loan and in doing so ended up paying a much higher interest rate than that on your credit card or overdraft and even penalties for repaying them, you could have a miselling case.

    At least HSBC didn't demand repayment of the money they owe you and leave you with a CCJ or bankruptcy preventing you from getting a job in certain industries or preventing you from borrowing for a long time.

    Presumably HSBC didn't force you to spend the £10,000 you borrowed in the first place?

    Sorry if that sounds harsh, but you need to repay the money you owe.

    R.
    Smile :), it makes people wonder what you have been up to.
  • bb23
    bb23 Posts: 91 Forumite
    CLAPTON wrote: »
    I wish you well in complaining about the loan

    however if you wish to pay it back more quickly then you need

    a. to pay more each month... check the T&Cs to see whether the extra money reduces the total interest

    and/or
    b. refinance the loan with one with a lower interest rate... whether this is feasible depends upon your credit rating and income of course

    I've tried, the extra money put the interest up

    i cant refinance due to defaults and bad credit rating
    Debt at start (Aug 2003): £13,500 >>Debt Now (Aug 2013): £3,104
    HSBC charges WON (april 07): £1,103.00
    HSBC PPI WON!!! (July 08): £1,166.00
    HFC PPI WON!!! (August 08) £2,100
  • dannynixon
    dannynixon Posts: 418 Forumite
    can a partner or family member not take a loan out for you?
    LBM - 30/07/09
    Started DMP in Oct 2009, went wrong. Due to start new DMP in March/April 2013. Bring it on!
    :beer:
  • bb23
    bb23 Posts: 91 Forumite
    dannynixon wrote: »
    can a partner or family member not take a loan out for you?

    I had not thought of this one! i'll ponder on it
    Debt at start (Aug 2003): £13,500 >>Debt Now (Aug 2013): £3,104
    HSBC charges WON (april 07): £1,103.00
    HSBC PPI WON!!! (July 08): £1,166.00
    HFC PPI WON!!! (August 08) £2,100
  • bb23
    bb23 Posts: 91 Forumite
    I asked, no one in my family can help - they all have enough debts and problems of their own.

    Im not really sure where to go from here.
    Debt at start (Aug 2003): £13,500 >>Debt Now (Aug 2013): £3,104
    HSBC charges WON (april 07): £1,103.00
    HSBC PPI WON!!! (July 08): £1,166.00
    HFC PPI WON!!! (August 08) £2,100
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.8K Banking & Borrowing
  • 252.3K Reduce Debt & Boost Income
  • 452.6K Spending & Discounts
  • 241.6K Work, Benefits & Business
  • 618.2K Mortgages, Homes & Bills
  • 175.9K Life & Family
  • 254.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.