I am also wondering why they said I had to go on a managed loan.

I have never defaulted with the HSBC. I paid my credit card every month and always paid my initial loan.

I am not happy with them, and the managed loan has two errors on it so far. I am in the process of querying this, will make a complaint and also take it to the Ombudsman when I can.

Hello - new here but this is just the forum I've been looking for.

 

I've been trying to figure out how to get out of Managed Loan I was forced into by HSBC in March 2005 when they cancelled my overdraft and rolled up that, credit card and personal loan together into £16,000 (not convinced how they got that number!) at 11% over base rate. They said I had to take it out or they would take me to court and make me bankrupt. Also said I could re-negotiate after 6 months but would not consider it when 6 months had passed, nor after a year, nor after two years passed. Anyway I've now paid nearly £12,000 and still have £14,000 to pay. Lovely people.

 

Current thinking is to use section 93 (interest not to be increased on default of regulated agreement) of Consumer Credit Act 1974. As the only default I had made was on the original personal loan and am thinking that the imposition of the Managed Loan interest rate is a penalty for the original loan. Any thoughts anyone?

 

Next, thinking that the provisions of the 2006 Consumer Credit Act relating to unfair relationships might be helpful in that the court must take into account all the circumstances when I entered into the Managed Loan (which I guess would be similar for a lot of people) including the harrassment, the broken promises etc and, from what I understand, it is for the bank to prove that they acted reasonably. Even if there had been a risk to them (given my default) why would they increase their exposure to such risk by extending the term of the loan and not substantially reducing the payments. In addition, there are more than £600 of bank charges which were rolled up into the loan (the majority of the interest free overdraft).

 

Also, should I be using the court or the Ombudsman?? :?

 

Anybody have any thoughts on all of the above as I'm sick and tired of paying this every month and not seeing the balance go down - except from some help from global economic collapse lowering the base rate of course!. Feeling very dim for having signed the ruddy thing in the first place.

 

Thanks for your response in advance.

PC

Get the letter 'N' off to the bank ASAP you never know luck they might not have the original.

Your situ is so similar to mine ...and my agreement unfortunately:roll: had not been executed properly so I haven't paid a penny since June 2007.

Get the letter off and get the ball rolling.

As for the Ombudsman its up to you.

Get the letter 'N' off to the bank ASAP you never know luck they might not have the original.

Your situ is so similar to mine ...and my agreement unfortunately:roll: had not been executed properly so I haven't paid a penny since June 2007.

 

Get the letter off and get the ball rolling.

 

As for the Ombudsman its up to you.

Hi

My managed loan does not appear to be executed properly either. Can I ask what was wrong with yours?

Hi

 

My managed loan does not appear to be executed properly either. Can I ask what was wrong with yours?

Payments were taken four weekly- when the agreement was calculated monthly.

Therefore Apr was wrong and amount of payments did not match.

I had not dated agreement this was done later by bank official therefore I would not know when my right to cancel started or ended.

It was not signed by me.

Payments were taken four weekly- when the agreement was calculated monthly.

Therefore Apr was wrong and amount of payments did not match.

I had not dated agreement this was done later by bank official therefore I would not know when my right to cancel started or ended.

It was not signed by me.

So how did they let you off with it? Did they write and nicely say it is unenforceable?

Oh dear.. I am wondering now.. because mine comes out on the 1st/2nd/3rd! I am going to see if that's another complaint I have with them!

ETA: Just checked, all mine are legit apart from the first one. They are all Mondays Was hoping I would have that on them too! The more inconsistencies the better

So how did they let you off with it? Did they write and nicely say it is unenforceable?

No I dont have it in writing....An area manager admitted that it had not been drawn up correctly.

 

 

Oh dear.. I am wondering now.. because mine comes out on the 1st/2nd/3rd! I am going to see if that's another complaint I have with them!

 

ETA: Just checked, all mine are legit apart from the first one. They are all Mondays Was hoping I would have that on them too! The more inconsistencies the better

I believe that there may be inconsistencies in many agreements drawn up before 2007.

I believe that there may be inconsistencies in many agreements drawn up before 2007.

So what does this mean though?

Do they tell you you don't have to pay? What about your details on the credit file? Are they still there? How are they showing?!

So what does this mean though?

 

Do they tell you you don't have to pay? What about your details on the credit file? Are they still there? How are they showing?!

My only concern was and is that I now dont pay them anymore.

My credit file is ruined because of charges etc but as I now do not rely on credit it doesnt bother me whats on my file.

Might challenge them when I have finished with getting the loan payments back and personal account charges.

No they haven't told me I dont have to pay on the contrary they continued to try to take payments out of my account after they defaulted.

They took five payments....Well they would have if I hadn't opened a new bank account somewhere else.

Anyone any update re success with ML? Having written and got the standard 'we helped you by giving you the ml;' Ive carried on by re asking for a copy of my agreement - asking if PPI is on this loan - asked for clarification of term of loan - asked why staff are telling me I have only had the loan since 2006 when I have had statement and proof that it has ran since 2003 - asked why they say Ive made 40 payments when having checked statements I have made 77 - asked to confirm what PPI was on the loans that took me onto the ML asI feel I have a case for the mis selling of it - oh and last but not least why are staff telling me that it is set to run until 2018!! tHATS 15 YRS@£118....180MTHS =21240.00! FOR INITIAL ml OF £5000!!!! Plus I ve also raised the query that as I was one of the lucky people who have already successfully reclaimed bank charges - £2000 from them - as it was charges that led to said loan why hasnt the ML been recalculated to show this??

Anyway folks , had standard response again stating they havent got my old loans to hand so can't tell me if PPI on , so no claim to answer - state that there would be no PPI on ML ( BEG TO DIFFER ) no answer re incorrect information given about term length etc and completely ignored the recalc on ML

I'm not giving up - I have written 1 final letter for clarification on everything , have also sent in templete letter for reclaiming / mis selling and have sent the request for said documentation along with a postal order for there fee.

I recall the conversation with HSBC REGARDING THE ml AS AT THE TIME i WAS IN TEARS DAILY AS i JUST COULDNT SURVIVE ON NOTHING - I was told 7 yrs for the loan term , I wasnt told that a huge amount went on interest - checking statements at the beginning it was nearly £80 / £118 payment - plus HSBC GAVE ME 2 LOANS to cover overdraft/charges and then slammed me with the ML or court / bailiffs etc..

If anyone is told the ML is a way out please please please dont go near it!

Hers hoeing I come back with some good news at some point.

I fought them for over 12 months trying to get it sorted on the basis of an unsigned agreement and after missing deadlines and me taking them RIGHT to the last point they suddenly managed to find the agreement they had been stating didnt exist.

was tough going and disappointing.

the HSBC Managed Loan needs some kind of class action brought against it in my opinion. as it doesnt seem to have acutally ever helped anyone!

BB23

Alright pal! Did you get anwhere with your HSBC managed loan?

Cheers

Boyd86

Hi all I'm just starting out on my journey in fighting with HSBC with a managed loan that wasn't really explained to me I was forced to take out a managed loan with HSBC on the 10/07/2007 due to a split with a violent ex and me taking on all the debt just to get out of it.

The loan amount was for £23.500.00 and 13.3% variable. Amount owing on 1/09/2012 is still £13.326.00. The loan is over 12 years so I have 7 more years of paying £316 a month. I can't see how this can be fair , they will have had over double what I owed from me by the end. Interest on this by the end will be Interest to pay for loan - 22,002,63 crazy!! Step one done today and request sent for my SAR let's see what happens. How did you guys get on? Any tips? Or advice?

Hsbctrapped - any luck???

Still fighting it as they have lost my loan agreement so with the ombudsman now

Makes you wonder how they can legally continue to debit money from your account if theres no agreement in place that authorises them to do so

Still fighting it as they have lost my loan agreement so with the ombudsman now

hi - sorry haven't had time to go through your thread but back in 2006 ish I had a managed loan with HSBC which they tried to force onto me. Despite having no permission to convert my ordinary loan into a 'managed loan' they tried to whack me for a huge new loan to cover the old one. The total charge for credit and interest increased my debt by approx. £9000 which was not the best thing for someone already in financial hardship, and being in such hardship they were not entitled to increase my indebtedness. It ended up on Channel 4 news and they withdrew it but still put the whole amount on my credit file! I have yet to get that sorted out, but hope this tale gives you some hope, the British Banking Association were also interviewed by Channel 4 and of course, they said, oh we don't know about this particular case. Good luck with your fight with them as they are no different from all the other financial institutions that spend thousands on marketing their 'products' but never admit wrongdoing even when caught red-handed.

If they have lost your loan agreement what would they take to court?

I got a managed loan in 2008 for just under £25K. I had got myself into an awful mess after being ripped off by an ex boyfriend. Even though I was struggling to balance all my debts I still hadn't defaulted on any payments. I decided to phone my bank (HSBC) and see if they could consolodate all my debts into one loan.

I was told that the maximum personal loan they could give me was only £20,000 so I'd have to go on a managed load instead. It was organised over the phone so and I definitely didn't take in any information on the interest rates (if they were even mentioned to me at all!)I've been paying £328 monthly and recently been topping them up by £30 extra a month. So far in the 6 years I've been paying this debt I've paid HSBC nearly £9000 in interest alone.

What I'm wondering is should I have been put on this type of loan at all if I hadn't defaulted on any payments? I've had no contact from the bank reviewing this loan - am I right in thinking they should be Managing this? Could I have saved hundreds in interest if I'd been put back onto a normal loan? I only stumbled across this thread by accident as I was trying to find a number to contact the Managed Loan team -who I think live underground somewhere in the middle of nowhere without any means of speaking to other human beings.

Ive nearly finished my managed loan, probably have 13 payments max to make.

I was struggling recently and phoned telephone banking to discuss paying a reduction on the £140 month payment. They put me through to someone (who i assume was from the managed loan department) and after going through income and expenditure they agreed to reduce payments to £100 a month for a 3 month period. Anyway to get to the point i was making - they are contactable.

With regards to the selling of the loan to you - well i guess thats a legal and moral minefield!

Did you have to take Payment Protection Insurance out with teh Managed loan as well ?

I was struggling to meet my repayments for 3 creditcards (1 was hsbc) 1 personal loan and one flexi loan and Overdraft.

I asked for a conciliation loan purely to put all these in one place.

We came up with a figure that paid it all back and at the same time reduced my monthly payment total to an affordable level and £100 per month less than I was paying.

Final approval was "denied" on affordability

Then Offered a "Managed Loan"

I declined the offer.

Thankfully when I did my SAR i specifically asked for this information on the grounds that i believe its evidence of the bank acting unfairly when under financial difficulty. I have the coms log and loan request and refusal etc Im biding my time

I've been meaning to look about managed loans for ages! Just been going through PPI stuff and found my PPI agreement for my managed loan taken out in 2004 - which I am STILL paying off.

At the time I had started a new job, was very young and living in a big city and not earning much - I was racking up quite an overdraft (which HSBC) charged me for - then the phone calls started - almost 10 a day - I would try and speak to them and they said I had to pay all the overdraft back, I said I couldn't and started trying to avoid the phone calls. One day, I crumbled and spoke to them - sobbing, I said I couldn't pay - they said "Hold on - someone will call you back". I received a call from a lovely person - who was very calming but quickly said - they could sort it all out and would consolidate my loan and overdraft into a special managed loan - I don't remember any of the details as was still crying - but I thought it sounded great as they would sort it - and put £50 credit into my account so I could get through the rest of the month!

I have been paying it off ever since - a few years later - I went into the bank to speak to them about it and they couldn't speak to me about it but basically said I can only pay my repayments - or pay the full sum with the interest in one go - but cannot change anything about it otherwise.

Even though, 10 years later - I have no other debt and a good stable well paid job - the managed loan means I can get no credit anywhere, even though i have never defaulted on payments! I can't get a mortgage or a credit card if I wanted one - or an overdraft. Not that I want a credit card or overdraft really - but a mortgage would be nice!

The interest rate is horrific and I was forced PPI for it.

Shall I go to the financial ombudsman about this?

I don't mind paying my debts - but feel this one is a bit over the top and I shouldn't have been forced into it in the beginning when I was in a very vulnerable position.

UGH!

Hello there.

You've posted in the Campaigns forum, which isn't where we advise people.

It might be a good idea to start your own thread in the HSBC forum.

HB

Hello,

Here is my managed loan story!

I am not denying I owe HSBC money and I am continuing to make the loan repayments on the loan and have never defaulted. However I feel entirely misled and feel I have overpaid interest.

I have been banking with HSBC since 1998. Everything was fine until I became a single mum at the age of 20 in July 2003. I had also been unemployed since May 2003. On 15th August 2003 I requested an overdraft of £100 which HSBC approved. 5 months later (February 04) HSBC increased this to £250 at my request despite being unemployed, a single mother and pretty desperate when it came to money. Within 2 months (April 04) this was again increased to £500.

I was soon hitting my overdraft every month, no surprise given my benefits totalled barely surpassed this amount. Despite this, 5 months later (September 04) HSBC approved a loan of £2000 with an APR of 16.9% - how they calculated I would be able to make repayments, despite constantly exceeding my overdraft and incurring fees, was beyond me!

Within 11 months I was unable to keep up with the repayments and the unauthorised overdraft fees and phoned HSBC in sheer desperation. I merely asked that they reconsidered the loan repayments. They refused and offered another loan of £3390, which would wipe my overdraft now standing at £684.46, pay off my loan which now stood at £2660.02 (despite making payments of £451.20 off a £2000 loan) and would leave me £45.52 of contingency money in my account! They explained it was a managed loan and I would waive my rights to a standard account but my monthly repayments would be £44 and interest was 12.1% much less than my personal loan. I was uncertain, I hadn't wanted to increase my debt, merely recalculate my repayment schedule. To this there response was that my only alternative was bankruptcy.

So with a 2 year old son, no employment and what seemed like no other option I agreed, the paperwork came through the post and was as they had said £44 per month repayments and 12.1% APR, so I signed and returned.

I am still paying that loan 9 years later and my last payment will be July 2017. In that time I will have paid a total of £6204, £2814 in interest and the £3390 capital. Is this 12.1%? I can't see how it is.

HSBC took advantage of my hardship to sell the managed loan to me at a rate that seemed reasonable but was anything but. I feel it was mis-sold, mis-represented and only made my financial circumstances even worse. HSBC had full access to all my transactions and were aware of my inability to successfully manage my finances. For any unemployed, single mother, with little financial knowledge to be sold a loan in any guise is certainly not responsible lending and I hope you would agree.

Not sure what to do with this really, HSBC will just tell me to do one I'm sure!

Any updates from anybody?

Although im close to getting rid of this debt im very bitter about how much its cost me in total.

Update; after paying reduced repayments for 3 months (beginning june,july,aug) I was contacted my HSBC by phone, they said my repayments would go back to 140 a month. However ive noted that they still remain 100 (thats what they took from my standard bank ac at beginning of sept & oct). I have to admit im kind of pleased as the extra 40 has helped with my fimances. However, I really should phone them and get it increased as its just going to mean extending my repayments further into 2015 than i would prefer.