Who has had Managed Loans?

[Elevated]

Hi Folks, In march 2005 had a personal loan with the HSBC to role up CCards I held with them and an overdraft, actual amount of loan was £15000, plus 'loan protection' whatever that is, an additional £4830.00 was added, with Insurance premium tax that went to £4836.40, total charge for credit on the principal loan is £5766.00 and on the loan protection is £1856.65, so total is £20766.00 plus £6686.65 for the loan protection over 96 months the payments would be 215.32 and 69.65 for the protection.

 

Soon after getting this I lost my job (November 2005) and it fell into arrears and the bank changed it to a managed loan of £20,550.00 over 108 months at an APR of 12.10% variable, the total charge for the credit would be £12,528.78. the payments jumped to £306.30 a month, it was obvious from the start I could not keep payments up on this, oh an by the way my first idea was to claim on the protection policy but they removed that from the managed loan.

 

I tried to make the payments with a mixture of help from others but I failed, and now metropolitan have it and have requested £150/month, I have been paying this for 6 months and its breaking me, I have sent a CCA letter to metropolitan in August and had no reply at all - any ideas I am at my wits end with it.

[loz]

Surely the "loan protection" should have kicked in when you lost your job? Or did they find some bit of small print to avoid paying out on it..?

 

HSBC really are the pits for these loans - I was forced into one when I asked for a temporary increase to my overdraft as I was changing jobs (and going from weekly pay to monthly). If there was a way out of it I would grab it with both hands...

 

Loz

[Elevated]

Thanks Loz, a way out is exactly what I want but the protection was withdrawn when it was changed to a managed loan

[loz]

The way your original post reads to me is that you lost your job before the change to a managed loan, so the loan protection should still have been there..? Or have I misunderstood?

 

Loz

[Elevated]

It was originally but as they kindly pointed out I wasnt able to pay the payments I could not claim.

[Audreygreeneyes]

did they inform you of this? and does your managed loan agreements clearly show their is no payment protection? as you had it for a considerable length of time, you could argue why would you then cancel it!!!!

[gemspan]

Hi there

 

Wait just now!!!! You had a loan with protection in case you fell sick, lost your job or died. When you lost your job they tell you that you cant pay it so they change it to a managed loan without protection and at a higher interest rate.

 

They are basically having a laugh!!!! The reason you couldnt pay it was because you lost your job - which is exactly the reason the protection is there in the first place.

 

I suggest that you write a letter of complaint setting out the pertinent points and tell them that you believe you were mis-sold the managed loan and in fact that had you been given the correct advice you could have claimed on the PPI until you found another job.

 

This is absolutely appalling. I would take it all the way. It would also be an idea to post this in the section on PPI. There are people there who are well versed on the pitfalls etc., of PPI and will probably be able to give you a lot of really good advice.

 

Good luck. I really feel for you. What a shower of sods. This is a prime example of picking on somebody when they are at their most vulnerable. I just wouldnt let it go.

 

Please let us know how you get on.

 

Kind regards

Gemspan

[Audreygreeneyes]

Did you say you sent them a CCA letter in August? if so they have 12 days to respond failure ot do so then puts the account into default............they then have a further cal month to supply the information....... if they fail to respond byu this time , they are then commiting a criminal offence..........

 

You need to contact the OFT & FSA and the banking ombudsman. also write to the bank/and mercantile pointing out this breach of the law, and you are passing this over to the 3 above named.......

[Elevated]

Hi, Just had the following letter from Metropolitan, I dont understand it and seek help chaps.

 

Dear::::

 

Thank you for your letter dated 27th September 2007

 

Please find enclosed copy loan agreement, in respect of account number xxxxxxxxxxx as requeted. We have returned your cheque for £1.00 as there is no fee required for this information.

 

With reference to your HSBC bank account xxxxxxx we should advise that section 78 of the consumer credit act 1974 (the act) does not apply to current accounts. The current account is not a regulated agreement because it provides no credit. The overdraft agreement provides the credit and this sits separately from the current account agreement.

 

Credit agreements normally have to comply with Part V of the consumer credit act 1974. Part V coverts the form and contents of agreements, signing of agreements and duty to supply copies of unexecuted agreements. However, current account overdrafts are given a specific exemption from all the part V formality requirements by section 74(1) (b) of the act.

 

This exemption applies only when the OFT grant a determination under section 74(3) and this was given for overdrafts on 21 December 1989.

 

The consequence of this is that there is no executed agreement for a current account overdraft and so section 78 (right to demand copy of excecuted agreement) does not apply.

 

We trust this resolves your query.

 

The agreement they have enclosed signed by me on the 5/12/05 is a fixed-sum loan agreement regulated by the consumer credit act 1974

 

HELP

[petedoyle]

hi guys, i got this in from MCOL today in relation to my question (as per gemspans bit above in this thread)

 

i got this reply

 

Thank you for your e-mail. We are awaiting another defence form the defendant as they first of all filed a holding defence which is usually only filed for bank charges claims. They have been given until 21st October 2007 to provide this. You should wait until this time has passed before proceeding. You will be notified if the new defence is filed and will be sent a copy and the claim will be transferred to local court for a hearing. If no defence is received then you will be able to request judgment by default.

what does a 'judgement by default' mean exactly, i have seen it mentioned in other threads etc, but what it does it mean in this case?

thanks

P

[gemspan]

Hi, Just had the following letter from Metropolitan, I dont understand it and seek help chaps.

 

Dear::::

 

Thank you for your letter dated 27th September 2007

 

Please find enclosed copy loan agreement, in respect of account number xxxxxxxxxxx as requeted. We have returned your cheque for £1.00 as there is no fee required for this information.

 

With reference to your HSBC bank account xxxxxxx we should advise that section 78 of the consumer credit act 1974 (the act) does not apply to current accounts. The current account is not a regulated agreement because it provides no credit. The overdraft agreement provides the credit and this sits separately from the current account agreement.

 

Credit agreements normally have to comply with Part V of the consumer credit act 1974. Part V coverts the form and contents of agreements, signing of agreements and duty to supply copies of unexecuted agreements. However, current account overdrafts are given a specific exemption from all the part V formality requirements by section 74(1) (b) of the act.

 

This exemption applies only when the OFT grant a determination under section 74(3) and this was given for overdrafts on 21 December 1989.

 

The consequence of this is that there is no executed agreement for a current account overdraft and so section 78 (right to demand copy of excecuted agreement) does not apply.

 

We trust this resolves your query.

 

The agreement they have enclosed signed by me on the 5/12/05 is a fixed-sum loan agreement regulated by the consumer credit act 1974

 

HELP

 

Hi there

 

They've sent you a copy of your loan agreement as requested. Are you querying a bank account as well? If so, they are telling you that there is no agreement relating to the bank account because cheque accounts dont fall under the clause. An overdraft, however, does and they need to send you the agreement you entered into ie date, length of time, interest rate etc.,

 

Make sure that the loan agreement has all the required terms because if it doesnt it is unenforceable. However, I believe it is unenforceable anyway because of the fact that they cancelled your insurance which could have paid for the original loan. You have a very strong case IMO>

 

Kind regards

Gemspan

[gemspan]

Hi Pete

 

Judgement by default simply means that they havent bothered to contest the claim so you have won!!!! This would then mean that you can get your loan re-assessed by HSBC in accordance with the judgement.

 

Kind regards

Gemspan

 

PS: Wait the required time. Dont contact them and see what happens. They may defend it, in which case you would then get a court date and it would be heard before a judge.

[Choc-a-block]

Hi there

 

I had a managed loan which cost me a fortune. The bank has a list of things you can, and more realistically, can't do, when yolu have a managed laon.

 

For instance you are not allowed an ovedraft. If you do go over drawn the chages are twice what they normally charge. I used the cash dispenser to obtain cash on the basis that if there was no money in the account, the cash machine wouldn't give me anything and therefore I wouldn't be able to go overdrawn and break the rule. Wrong, my bank kept on sending me letters at the usual 30 quid plus overdraft charge of 30 quid. When asked how I could be allowd t go overdrawn by the bank and then charged for the pleasure they replied that the bank will always allow up to 10 pounds to be obtained from a cash point machine to cater for emergency situations and it was my fault for not knowing this.

 

I wonder if anyone else has experienced this?

[petedoyle]

got letter back from DG solictiotrs on Friday 19th.............thanks for your letter dated blah blah

 

we confirm that we are recalling our clients earlier file realting to your previous county court claim (do they mean the one i did last year for the bank charges?) once tha has been considered we will be in a position to provide a detialed reply to your letter. yours DG

 

my letter contained pretty much points raised in the above thread and some very useful comments from gemspan et al. i know its a standard fob off response, but im assuming they have had a kcik up the backside by the simple fact the court HAVE removed my stay, as this DOES NOT relate to bank charges (kinda does though - indirectly!) so now things are movign again....im still paying back the loan untill this gets sorted as i dotn want to defualt and get any blacklistigns or mess up my credit report....

[petedoyle]

just had a new letter from DG today - with exactly the same defence as the one they previsouly submitted, so it looks like they are intending to defend the claim - looks like i will be going to court then!! ironically i had a missed call on my mobile yesterday from HSBC - i called it back one of those stoopid 0800 numbers...'no need to call back'...i dont know if it was related or not?

 

anything i should now do as this has been transferred to my local court?

[Castlebest]

Your local court will send you a notification of what will happen next, it may be am AQ or you may get a court date.

 

pete

[petedoyle]

Thanks for that.

 

do you think its possible (as the have staed they clearly intedn to defend this claim) and have submitted a serious defence that it will go to court, even though any judge/normal person will see that the case stacks in my favor and the evidence i have to proove my case is unquestionable, or will they DG/HSBC string it out for a while (like they did on the bank charges) and then at the 11th hour - 'make an offer' ??? anyone have any experince of a ML being handled like this in the courts.

 

Pete

[gemspan]

Really Pete, its not about them making an offer, its about them re-negotiating the loan that includes bank charges. Nobody call tell what these guys do as they are a law unto themselves but it is in their favour to start to negotiate with you prior to the hearing as its going to cost them. Bank of Scotland said they were defending my case and settled with me so the chances are they will settle. Again though nobody knows. I personally think they are just trying to scare you. Dont let them. Be strong in your case and you will win if it does go to court.

 

Gemspan

[petedoyle]

reassuringly appreciative again of your comments, thanks gemspan Pete

[Elevated]

Hi there

 

They've sent you a copy of your loan agreement as requested. Are you querying a bank account as well? If so, they are telling you that there is no agreement relating to the bank account because cheque accounts dont fall under the clause. An overdraft, however, does and they need to send you the agreement you entered into ie date, length of time, interest rate etc.,

 

Make sure that the loan agreement has all the required terms because if it doesnt it is unenforceable. However, I believe it is unenforceable anyway because of the fact that they cancelled your insurance which could have paid for the original loan. You have a very strong case IMO>

 

Kind regards

Gemspan

 

Hi I sent MCA a letter saying that I think the managed loan had been missold as I had protection on the first managed loan, they changed it to one that didnt have protection, I have today had a first letter (7day) from DG Solicitors

 

What should I do now???

[Castlebest]

Hi I sent MCA a letter saying that I think the managed loan had been missold as I had protection on the first managed loan, they changed it to one that didnt have protection, I have today had a first letter (7day) from DG Solicitors

 

What should I do now???

 

Until you get a reply to your letter your loan is in dispute.

 

write back to DG telling them that you are awaiting a reply from MCA and until you receive this the loan is in dispute and you will defend any action they take on that basis.

 

The court has the power to demand any information that they are unwilling to provide.

 

pete

[Elevated]

Until you get a reply to your letter your loan is in dispute.

 

write back to DG telling them that you are awaiting a reply from MCA and until you receive this the loan is in dispute and you will defend any action they take on that basis.

 

The court has the power to demand any information that they are unwilling to provide.

 

pete

 

Thanks Pete, I am compiling a letter with a copy of the original managed loan agreement with the protection on it and the newer one with it removed?

[petedoyle]

got my letter this morning - court date set of 29th Jan 2008, have heard nothign back from DG in relation to re-negotiating my loan amount. was hopign i would, seems i now a proper fight on my hands...

[Elevated]

Ive had a letter in reply to my dispute letter from Dg and it goes like this,

 

please provide us with any supporting documents you may have so that we may investigate your query.

 

please be advised that it is the responsibility of the policy holder to make a claim with the insurance company direct.

 

we shall hold this matter in abeyance for ten days pending receipt of the above.

 

I have already sent them, original managed loan agreement with protection, and second managed loan agreemnt with no protection.

 

what next do you reckon folks

 

regards

 

elevated

[gemspan]

Hi there

 

Firstly, Pete, you may not have a fight on your hands. They have until the very last minute to start negotiating. Perhaps a letter at the beginning of January reminding them that you are going to fight would be in order if they havent contacted you before then.

 

Elevated, simply write back to them and advise them that you have sent all the documents relating to your query and you are querying the mis-selling of the second managed loan etc., etc.,

 

Hope this helps

 

Kind regards

Annie