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HSBC Managed Loan Campaign


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I am planning to collate as many HSBC Managed Loan [horror] Stories as possible all in one place as i feel these loans (i have one myself) were handed out unfairly and HSBC Prey(ed) on the desperation of debtors without explaining the full terms (and HIGH INTEREST) involved in the Loan.

 

If you have or have had an HSBC Managed Loan or know someone who has or has had an HSBC Managed Loan please can you submit your FULL story to this thread so that i can gather some ammunition to form a very official complaint. Let me know exactly how it was sold to you, your circumstances, did they explain the interest rates?

 

I am in the early planning stages so still need to fully understand the best course of action and who to complain to once i've got all the info but 4 years of trying on my own with my Managed Loan has got me nowhere, so i've figured the more stories i can get the better chance i've got of making a difference.

 

I am also hoping to start the same thread over with Martin and moneysavingexpert.com

 

This type of story has already been briefly covered in the news but i want to gather more exposure

 

BBC NEWS | UK | Banks 'prey on customers in debt'

 

 

My personal Managed Loan Story (abridged)

 

in 2004 i was in nearly £10,000 of debt - then i lost my job. I panicked so much i went to see my bank manager and he offered to put my overdraft, loan and credit card all into one 'Managed Loan'. He didnt explain anyting about it being 9% above base rate on APR and variable interest rate. I was so desperate i signed without question. Now, 4 years down the line i've only paid of £2,000 of the loan and £3,000 in interest (it doesnt even make sense!!)

 

My Main aim in this is to either get HSBC to stop offereing these (dont think i'll manage that) or to get them to amend the terms so that the interest rate can get dropped back to base rate once the debtor is in a better position to pay off the Managed Loan. Im noto quite sure what other outcome i could achieve, although i had wondered if i could get them to pay back ALL the interest straight back into the loan to reduce it down to what it SHOULD be after 4 years of repayments and THEN amend the interest rate as well to HELP me pay it off. After all, all their leaflets and T's and C's state that they are always willing to help people in financial difficulty - in my case and i'm sure many others as well though, this is not the case and the HSBC Managed Loan has just made things worse for so many of us.

 

Please please help me by contributing your stories.

 

many thanks

 

Belinda Neal

HSBC charges WON (april 07): £1,103.00

HSBC PPI WON!!! (July 2008): £1,166.00

HFC PPI WON!!! (August 2008) £2,100:D

March 09: failed the fight to write off HSBC Managed Loan due to non compliance of SAR! after they finally produced my signed loan!

August 10: Fighting TBI for disputed account due to the fact they can't produce my signed loan copy.

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HSBC charges WON (april 07): £1,103.00

HSBC PPI WON!!! (July 2008): £1,166.00

HFC PPI WON!!! (August 2008) £2,100:D

March 09: failed the fight to write off HSBC Managed Loan due to non compliance of SAR! after they finally produced my signed loan!

August 10: Fighting TBI for disputed account due to the fact they can't produce my signed loan copy.

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  • 2 months later...

When i fell into difficulties with HSBC, they tried to shove a managed loan down my throat told them to go forth and multiply

 

i would sign any petition to ban these so called managed loans

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  • 4 weeks later...

can someone help

 

i took out a managed loan in july 03 over 5 years but wasnt really told it was amanged loan just thought it was a normal loan , i pay the 60th repayment this month so assumend it would then be finished but have since been told due to interest charges i still have a balance outstanding , surley this cant be right can it.

Edited by simba1
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hi BB23 i was in the same situation as yours but when i appproach HSBc their solution were signed to our managed loan or we will closed all your bank account and pass your files onto a DCA . baring in mind that most of it were charges ! they never told me about interest rates whatsoever etc,., and what was a managed loan to date i am still not too sure what it is, the only thing i know is that i repaid a lot of silly interest amount !

 

 

then i signed onto it after weeks and weeks of pressure and now i am bankrupt !

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  • 1 month later...

I was offfered a managed loan recently by HSBC in return for the loss of all standard banking privilidges.

 

Pointless exercise in increasing your burden of debt

Veester

 

"Challenges are what make life interesting; overcoming them is what makes life meaningful." -- Joshua J. Marine‏ ;)

 

Better than the truth itself is truthful living.

 

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  • 2 months later...

Hi

I am new to this forum.. However I have read all these posts recently. 5 years ago i took out a managed loan for 8000. I have been paying 200 a month. It is now standing at 11,000. I spent 3 years trying to speak to someone about this.. Never the less doors slammed in my face etc... appalling... I have gone straight to the Financial Ombudsman now who are now dealing with my case. It appears after one letter 2000 pounds has been credited to my account by them. Still its not good enough. I do not bank with them anymore as they black list you.They also black mark your credit file too... be warned... DO NOT TAKE ONE OF THESE LOANS!!!!! They prey on the desperate... They are loan sharks and once they have got you thats it.. I worked out I would be paying my loan now for a further 11 years... Its hilarious thats a total of 33,000. It is total rubbish the interest goes down . On a two hundred pound loan they pay 160 of that on interest.. That is never told when you take out the loan....... I am still waiting to here from the Ombudsman... ( to be fair they are as shocked about this loan and are really helpful)

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  • 3 weeks later...

Im off to my branch tomorrow to try and get an appointment - i'm armed, ready and dangerous and i WILL get my managed loan closed !! im hoping that by doing this i can also offer advice once ive seen my manager and give people the right ammunition to approach their own bank managers in order to get theirs sorted too.

 

wish me luck!

HSBC charges WON (april 07): £1,103.00

HSBC PPI WON!!! (July 2008): £1,166.00

HFC PPI WON!!! (August 2008) £2,100:D

March 09: failed the fight to write off HSBC Managed Loan due to non compliance of SAR! after they finally produced my signed loan!

August 10: Fighting TBI for disputed account due to the fact they can't produce my signed loan copy.

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Hi - we are being harrassed by HSBC who phone us continually, even on Christmas Day, re a Managed Loan that we cancelled as soon as we realised what was going on. This was about one week after and by phone. I know I read somewhere, possibly in the CCA that we could notify by phone, we then wrote but they are currently insisting that we were out of time to cancelll the agreement and they have increased our debt by about £10k. We also have a pre-existing claim for penalty charges which they refuse to deal with despite our being in financial hardship. The government funded Welfare Rights people are acting for us in the repo action so how can HSBC still refuse to acknowledge our plight!? They are saying that they will pass it all to a DCA. Isn't it funny how they can increase customers loans to pay off overdrafts etc, including their own charges, but cannot lend to the public! Gordon Brown where are you now!

Edited by iconoclash
typo
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Hi - we are being harrassed by HSBC who phone us continually, even on Christmas Day, re a Managed Loan that we cancelled as soon as we realised what was going on. This was about one week after and by phone. I know I read somewhere, possibly in the CCA that we could notify by phone, we then wrote but they are currently insisting that we were out of time to cancelll the agreement and they have increased our debt by about £10k. We also have a pre-existing claim for penalty charges which they refuse to deal with despite our being in financial hardship. The government funded Welfare Rights people are acting for us in the repo action so how can HSBC still refuse to acknowledge our plight!? They are saying that they will pass it all to a DCA. Isn't it funny how they can increase customers loans to pay off overdrafts etc, including their own charges, but cannot lend to the public! Gordon Brown where are you now!

 

Send them a SAR and £10 that might show a phone call was received.

Did you phone from home and have a statement with the call recorded?

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Send them a Subject Access Request and £10 that might show a phone call was received.

Did you phone from home and have a statement with the call recorded?

 

Also tell HSBC that if their reluctance to deal with your request for the refund of bank charges and their persistance with the managed loan leads to the loss of your home that any refund of bank charges will include compouded interest and consequential loss and damages.

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Well. I saw my branch manager this morning. I sat down, with my folder and no sooner had the words Managed Loan come out of my mouth had he interrupted me to say "We dont deal with those in branch any more, you will have to phone this number" (08456 033 122 Financial Guidance Team).

 

I asked him if he knew what a Subjext Access Request was and he said

"NOPE"

 

so, i walked home in the freezing and very icey weather, phoned HSBC Financial Guidance Team, spoke to a lovely (not) lady called Simone who took my income and expenditure and came back with

 

"looks like you CAN make the payments, theres nothing i can do to help"

 

i phoned again then, armed with my backup of the fact the loan should be unenforceable anyway due to the fact that after i sent my SAR back in June they replied telling that they could not send me the paperwork!

 

i had to explain to 3 people what an SAR was and what HSBC had done in order to make the loan unenforceable! it was like speaking to a bunch of children - anyway, the last guy Kevin from the customer credit team phoned through to the legal team for me and

 

they are sending my copies to me that i asked for in my SAR last year

 

so this leaves me wondering now even though they ARE sending me the copies, its a bit late as the letter was sent in June - - -or, they count this as day 1 in which case its not to late to send them and i have to hope theres some discrepancy on the agreement that will still work in my favour of making this loan unenforceable

 

altogether and tiring, frustrating day - and i've run out of teabags (and money to buy any more)!

HSBC charges WON (april 07): £1,103.00

HSBC PPI WON!!! (July 2008): £1,166.00

HFC PPI WON!!! (August 2008) £2,100:D

March 09: failed the fight to write off HSBC Managed Loan due to non compliance of SAR! after they finally produced my signed loan!

August 10: Fighting TBI for disputed account due to the fact they can't produce my signed loan copy.

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Well. I saw my branch manager this morning. I sat down, with my folder and no sooner had the words Managed Loan come out of my mouth had he interrupted me to say "We dont deal with those in branch any more, you will have to phone this number" (08456 033 122 Financial Guidance Team).

 

I asked him if he knew what a Subjext Access Request was and he said

"NOPE"

 

so, i walked home in the freezing and very icey weather, phoned HSBC Financial Guidance Team, spoke to a lovely (not) lady called Simone who took my income and expenditure and came back with

 

"looks like you CAN make the payments, theres nothing i can do to help"

 

i phoned again then, armed with my backup of the fact the loan should be unenforceable anyway due to the fact that after i sent my Subject Access Request back in June they replied telling that they could not send me the paperwork!

 

i had to explain to 3 people what an Subject Access Request was and what HSBC had done in order to make the loan unenforceable! it was like speaking to a bunch of children - anyway, the last guy Kevin from the customer credit team phoned through to the legal team for me and

 

they are sending my copies to me that i asked for in my Subject Access Request last year

 

so this leaves me wondering now even though they ARE sending me the copies, its a bit late as the letter was sent in June - - -or, they count this as day 1 in which case its not to late to send them and i have to hope theres some discrepancy on the agreement that will still work in my favour of making this loan unenforceable

 

altogether and tiring, frustrating day - and i've run out of teabags (and money to buy any more)!

 

 

Hi BB23,

 

This new number and the fact that Managed Loans are no longer dealt with at a local Branch level is extremely interesting;)

Perhaps we are starting to get too them.

 

I thought I would try this number to see if they would like to refund me all the monies they took from me on my Managed Loan:)

 

I was told that this number was only for applications for people in trouble making payments and to help by way of a Managed Loan:shock:

 

I told her that a Managed Loan was not helping anyone except the Bank and that it was a huge burden for many people in some cases for the rest of their lives.

 

They went on to confirm that they include child benefit etc into calculations as to whether anyone can afford to pay- I told them that I believed that it was illegal to consider monies intended for the use of providing for children as funds available to a Bank.

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OOOOH nice! what did they say to that?!

HSBC charges WON (april 07): £1,103.00

HSBC PPI WON!!! (July 2008): £1,166.00

HFC PPI WON!!! (August 2008) £2,100:D

March 09: failed the fight to write off HSBC Managed Loan due to non compliance of SAR! after they finally produced my signed loan!

August 10: Fighting TBI for disputed account due to the fact they can't produce my signed loan copy.

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OOOOH nice! what did they say to that?!

 

 

They stated that they would continue to take benefits into consideration when doing their calculations.

 

I repeated that it is illegal and promised to highlight their actions to everyone I can.

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  • 2 weeks later...

I took out a managed loan 2 years ago when i was in dire difficulty and it was the only option avaliable to me to stop my accounts being passed to debt collectors. I could not get any credit scored lending elsewhere. They assessed my affordibilty and set me up on a minimum monthly repayment that i could afford.

Two years down the line my situation has now improved so i am making larger paymts every month to get it paid off asap. The interest is charged monthly on the balance outstanding so the more i pay, the lesser the interest applied. There is no penalty for over payments so i suggest you all try to pay this loan asap. The interest rate is high, and when i questioned this was informed it was due to high risk lending. However i am grateful as the low repayments helped me get my finances back on track.

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I took out a managed loan 2 years ago when i was in dire difficulty and it was the only option avaliable to me to stop my accounts being passed to debt collectors. I could not get any credit scored lending elsewhere. They assessed my affordibilty and set me up on a minimum monthly repayment that i could afford.

Two years down the line my situation has now improved so i am making larger paymts every month to get it paid off asap. The interest is charged monthly on the balance outstanding so the more i pay, the lesser the interest applied. There is no penalty for over payments so i suggest you all try to pay this loan asap. The interest rate is high, and when i questioned this was informed it was due to high risk lending. However i am grateful as the low repayments helped me get my finances back on track.

 

 

Well there has to be ONE doesnt there?

 

How nice of those lovely people at the bank to help you out.

Why, they even charged you a higher rate of interest to just to help you!

 

If they really wanted to help you they could have helped you a damn sight more by giving you a low rate of interest so that you paid it off sooner.

But then they wouldnt have been able to screw you for interest.

 

Why should high risk = high interest.

The risk factor is the same regardless of what interest rate they charge you. Its just an excuse to rip you off.....only you cant see it.

 

One of the options available to the bank -after the review that you probably havnt had- is to reduce to a zero interest or after you have proved yourself with them credit wise, is to put it onto a personal loan.

I wonder why those nice people down the bank havnt done that then?:rolleyes:

 

Zorfy,

If you really believe that these Managed Loans helpful I suggest you pop along to you Bank and offer your services to them because you are the first person that I have seen promote a Managed Loan.

Your post should be removed because it is offensive to me and to the thousands of people ripped off by the banks with their stinking managed loans.

Gone are the days when Bank Managers were respected people within in a community - I have more respect for a thieves and muggers- at least you know when you have been physically mugged.

 

Normally when a new member joins they get a welcome message,

in your case I am making an exception.

Edited by hsbcfiddled
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Hi - WOW - I couldnt believe it either. After the bank managed to find a way of lending out another ten grand just to pay themselves and make us even more in debt!! - lovely people arent they - here I am chasing my tail and fending off the bailfiffs et al and I see someone actually thinks that the banks are only trying tobe helpful - hmmm - thats jsut what Emma at HSBC toldme. dont know what else I can say without being toooooo rude.....

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Hi - WOW - I couldnt believe it either. After the bank managed to find a way of lending out another ten grand just to pay themselves and make us even more in debt!! - lovely people arent they - here I am chasing my tail and fending off the bailfiffs et al and I see someone actually thinks that the banks are only trying tobe helpful - hmmm - thats jsut what Emma at HSBC toldme. dont know what else I can say without being toooooo rude.....

 

 

Why hold back Campari2?

 

My situation was bad enough. I paid them nearly ten grand in just over three years and only reduced my balance by £2.5k and yet I still owed £14K.

I am so pleased that they fouled up my agreement, and after the OFT case I will be claiming it all back....With Interest. lots of it!

But my situation knowhere near compares to some of the poor sods on here. If Zorfy had taken some time to research the plight of some of the people on here then maybe Zorfy would have kept their thoughts to themselves. No-one on here wants to know how wonderful the banks are.........this is the wrong place for such comments.

Edited by hsbcfiddled
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  • 3 weeks later...

After asking for a copy of my loan agreement this is what HSBC sent me

http://img.photobucket.com/albums/v30/tiryth/ccc.jpg

 

there are no signatures - it just looks like a computer print out..................... i am going to draw up a Subject Access Request now to give them one more chance to see if they can provide a proper copy and if not then my ML is most definitely in dispute and could in fact be unenforceable

 

Am i also considering writing a letter to remove the stay on a claim i made for repayment of interest charges to my ML as they are continuing to charge me even though they paid back the bank charges that, at the start, were rolled into the ML

 

im really hoping one of these angles can bring some significant changes to the way HSBC are handling my ML.

HSBC charges WON (april 07): £1,103.00

HSBC PPI WON!!! (July 2008): £1,166.00

HFC PPI WON!!! (August 2008) £2,100:D

March 09: failed the fight to write off HSBC Managed Loan due to non compliance of SAR! after they finally produced my signed loan!

August 10: Fighting TBI for disputed account due to the fact they can't produce my signed loan copy.

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Situation of my best friend:

 

They had a business and personal account with HSBC had been a personal customer for about 15 years I think it was, had no problems and was regularly offered things.

 

A little while back they unfortunately suffered from a major personal event and was certified off sick quite long term.

 

Contacted the bank, loan was no problem and was covered by insurance after a successful claim. However the business overdraft the insurance had not been added despite it being requested. Also the personal overdraft at some point (doesnt know when) they stopped providing cover for this.

 

This resulted in about 4 to 5k owing with no insurance.

 

Initially the bank was nice, they suggested putting the accounts on interest free for a few months with a view to then place in a managed loan (internally done at that time).

 

When it came time to review these were no longer done in branch, and so it was having to ring a central number.

 

If I recall right my friend said that they were on the phone for over an hour, and spoke to 3 or 4 different people. They were offered a managed loan at 7% over base rate over the maximum term, resulting in paying more in interest than what was owed!

 

They were told it was either that or MCS. They asked to think about it.

 

Upon ringing back to find out if the rate could be reduced at all, they were told that a managed loan could not be offered as the personal loan (covered by insurance!) would also have to be included in the managed loan!!

 

Needless to say it ended up with MCS.

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I too have/had a managed loan with this bunch of shysters. It was sold to me over the phone when clearly distressed (was depressed, had been made redundant from good job and scraping by on pittance, rang them in tears as wanted to arrange lower repayments over longer term). I was NOT told about interest - indeed was told was lower than internal! They were aggressive, I accepted payments that still took more than 1/4 of my wages each month due to this, threatened with unspecified but BAD consequences if failed to make payments. I lost all my privileges (not even a cash card, let alone a debit card) and credit destroyed instantly(admittedly destruction since aided by own disatrous head-in-sand panic over all things financial).

 

I have been paying for last 2 years. Missed 2 payments early on, but they did not do anything, just warned me that I had to keep paying, that if ever missed up to three payments would cause consequences, so i kept paying. rang last month to say "other bank mucked up, payment will be late, but coming, oh and here new address (forgot to notify when moved in June)" only to be told had all been closed and sent to Metro! NEVER had review, still don't know how much it stands at now (was a scary large amount around 20,000 when ML happened - overdraft, c/card consolidation, loan) The Lovely lady at HSBC refused to tell me when it was closed, refused to say amounts, refused to tell me where my payments had therefore been going, just gave me Metro's phone number.

 

Am now not as depressed (angry not crying), and have just SAR'd them and CCA'd Metro. (all on other thread for those who interested - http://www.consumeractiongroup.co.uk/forum/general-debt-issues/178140-please-please-help-urgent.html). Will gladly sign anything I can to highlight what a bunch of complete !!!!!! these people are, and quite what a legalised theft these loans are (in my own personal opinion)

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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. :-o 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.:oops:

 

Thanks for your response in advance.

PC

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What I would suggest being done with these 'managed' loans....(I still can't fathom out why they are called this as nothing is managed !!)....

 

Firstly send off for a copy of your agreement - this you will find here - LETTER 'N' send this with a £1 postal order and send recorded delivery

 

Letter 'N' - http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

At the same time it might be a good idea to also send off a SAR request to claim back excessive charges on the account too - most of these loans are arranged over the phone, so it is likely that they wouldn't have a signed and executed agreement...

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