HSBC Managed Loan.

peteuk

I was hoping someone could help me out here!!!

I have had a managed loan from HSBC (Midlands Bank) however cant find the original documnets.

I have spoken to HSBC and there collections department, and have got the following info.

The loan was taken out 25 Apr 2000, payment was set up for £174.68 however this was lowered to £80 in Jan 04. The original payment was part of an arrangement made with the CCCS. The managed loan was arranged to cover a loan I could not pay.

I dont remeber taking out a loan, but then again it was such a long time ago.

I am now trying to work out how many payments I have left, by some calculations I will be paying this until 2012. But no one at HSBC can tell me this for sure.

All I seem to get is if you pay more, the interest will be less. The interest rate at present is 7% above base rate..... 12%

But without a starting point I cant work how what is happening. Is it me but a loan over 12 years is a long time.

I have seen a letter on the web about obtaining your credit agreement, but like all things cant find it now I want it.

Pete

Runnybabbit

Hi Pete, Didn't want to look then run, can't help personally as I'm new myself so just giving you a 'bump' then all the experts will be along.
Good Luck

CCCS_Matthew

Hi Pete,

From briefly reading your post, the original term of the loan wouldn't be 12 years. The fact that you reduced the repayments down to £80 a month would have extended the term signficantly as you were then paying less than half the original agreed amount.

CCCS

misspixie_2

These managed loans are a nightmare, read some of the replies to my posts about my HSBC managed loan for some advice.

After visiting CAB, talking to CCCS and the woman at my branch who sold me the loan I have decided to default on the loan and make £1 token payments per month from my new bank account, as advised by CCCS.

The bank manager at my local HSBC said between her and me, she cant believe i didnt walk away from the debt a long time ago.. and theres me faithfully paying it back. Sixty years later, i would have paid it off!! ha!

Basically, you have two options -1. Pay back more each month - the interest becomes lower than what you pay back and you gradually pay it off
2. Walk away - make a token payment every month of what you can afford. Make sure you firstly set up a new bank account otherwise HSBC can take your money out of your account, whatever you have in it, to pay towards what you owe them.

As my bank manager from HSBC told me when i went in, what you can't do is keep on paying the minimum like i did as well, we will be paying it off for our whole lives! You never seem to get the debt down but you end up paying thousands in interest.
I personally have paid off over £3000 to the debt but due to the interest i actually have paid off about £200 if that!! no wonder HSBC are making profits of 9 billion!

Hope this helps. I came up against a brick wall when trying to talk to HSBC. The call centre said they cant help as the loan was set up in branch, the branch said its no longer dealt with in branch and i need to speak to the call centre! fobbed off at every turn!

:mad:

peteuk

I have decided to add more information, or as much as possible (HSBC do a good impression of a brick wall)

I am not 100% sure of the full loan amount taken out in 2000, however I believe the balance 13 Apr 02 was £7299.70

The initial payments were tied into a dmp from the CCCS at £174.68. When I had finished with all but this loan I stopped the dmp and started to get my life back. By which time I had gone from being single to married with a child.

The payments were lowered at a time of difficulty to £80.

Current balance is £2938.83, and out of my £80 i am currently paying £29 interest per month.

A few months ago I looked at increasing the payment to £100 (something I not 100% sure I can afford) however it didnt make much difference to the loan. Again at that point no one could tell me how they worked out the interest on the managed loan.

I have never missed a payment in the 8 years I have had this loan. I calculate I have payed to date i have paid £11,525.00 and have another £3,500. Thats double the amount

HSBC like to tell customers...

"if you pay more the interest will be less"

Sherlock Holmes must be turning in his grave for that great insite into loans and interest.

This is a dormant account, I only use it for my loan payments ie £80 goes in at the start of the month and a DD goes out for the loan payment.

However I have just taken HSBC for three loan payments in compenstation for screwing my account around. Might get them to look at the interest next time they !!!! up.

Have offically complained to HSBC about this situation and not being able to get the information.