Who has had Managed Loans?

[markd]

heh - I was tempted to claim the whole loan, but I knew they'd start questioning that and I just want the money Im owed now

 

Matt, If I remember rightly, there's a case on, I think, the TSB Lloyds thread where one lady actually did get back the full amount of a managed loan, plus the interest.

[Tigs33]

have you finished paying the loan - i'm in the same situation but only a quater way throught my agreement with HSBC, they told me unless i could pay off the £400 i owed them (over half in charges) then i had to take my credit card and £1000 interest free overdraft and the £400 unautherised overdraft and covert them into a managed loan and lose all facilities i.e. debit cards etc

 

I'm going to claim back the charges over the whole account life - this is maybe £500 but want to claim all the interest too - am i right in thinking that i can only claim what they have charged to date...i guess then i could use my claim money to pay off the loan before more interest is added or continue to pay and claim again once its paid off...in 4 years!

Hi,

 

The loan has got about £1,000 left on it, which will be cleared once we receive payment from the bank, we have only reclaimed the interest on the loan to date. If there is some proportion of your loan that wasn't for the charges I would restrict it so that you are only claiming the interest on the managed loan incurrect by the charges.

 

Be careful to make sure you get a good financial picture of any charges incurred before you took out the loan, not the actual amount which was outstanding say on your credit card or bank account, if you had a loan for say £500 in 2005 and you had charges for say £300 going back the four years prior to the loan, would it be feasible that charges incurrect prior to these four years also caused the need for the loan??

 

I hope that made sense

 

Say you had a managed loan of say £1000 and £500 of this loan was made up of charges on your current account and £500 was for a credit card you had (money spent and not charges) then I would reclaim 50% of the loan interest.

[KJBoutcher]

Hi all,

 

I too have a Managed Loan and it all came about thanks to HSBCs total uselessness. Way back in may 2005 I was managing to keep things going with payment to all my creditors even though I was not working and being a full time stay at home dad to my young son. Ends were being met by my eBay selling and it was all running smoothly (my wife works full time and has her own trouble with HSBC too but thats another story).

 

Then an £800.00 transfer was due so knowing I didn't have sufficient funds to cover it I cancelled it in time but good ol' HSBC still allowed it to go through putting me significantly overdrawn with no overdraft limit either. So now I was overdrawn and incurring interest and charges as there was no way they would reverse the £800.00 payment! Cheers HSBC.

 

So now things start to spiral out of control totally and I find I cannot pay anybody anything thanks to them refusing to refund the £800.00, which they really should have done bearing in mind a) I cancelled the transfer S/O and b)there wern't enough funds to cover it anyawy!

 

I go to the bank and see them about the mess and all they can say is 'we can arrange a managed loan for you' and with no other choice thats what I have to accept. My minimum payments are around £160 a month and I'm stuck with this thing for the next 12 years, all £9K of it (which includes a small overdraft and an HSBC credit card), gathering interst by the day. But the funny thing is, I don't even have a job! I am a stay at home dad, I am not entitled to ANY kind of benefits (I know I've tried) and my wife's salary is (just about) keeping us all afloat. So, HSBC gave me the loan with full knowledge that I was not working and my only income was ebay... not exactly a regular fixed amount either.

 

But what it all boils down to is that £800.00 transfer back in May 2005... If they had simply returned it to my account I would'nt have needed the damned managed loan in the first place and I certainly wouldn't be in this situation now!

 

I am furious with HSBC over the whole thing. If I can get rid of the loan I will and I am in contact with them about it now as I feel that enforcing a £160 payment per month from me is scandalous seeing as it was their cock up in the first place and I don't work so can't ever see me paying it off. I want the whole thing written off as it is grossly unfair and caused by their own mistakes. Oh, and they took two months to get the thing set up as they kept losing all the loan details too! They were supposed to send them to my local branch for signing but noooo, they had to keep getting lost in the post! Like I said, useless. And perhaps a tad irresponsible in the lending department maybe....?

 

Man, I'm ****** with them.

[Tigs33]

Wow so just because of an error of £800 it has turned into £9K???? Do you realise if you are paying £160pm over 12 years that is £23,000!!!!

 

So how much of the £9,000 is make up of charges??

[jo5ephedward5]

Hi,

 

The loan has got about £1,000 left on it, which will be cleared once we receive payment from the bank, we have only reclaimed the interest on the loan to date. If there is some proportion of your loan that wasn't for the charges I would restrict it so that you are only claiming the interest on the managed loan incurrect by the charges.

 

Be careful to make sure you get a good financial picture of any charges incurred before you took out the loan, not the actual amount which was outstanding say on your credit card or bank account, if you had a loan for say £500 in 2005 and you had charges for say £300 going back the four years prior to the loan, would it be feasible that charges incurrect prior to these four years also caused the need for the loan??

 

I hope that made sense

 

Say you had a managed loan of say £1000 and £500 of this loan was made up of charges on your current account and £500 was for a credit card you had (money spent and not charges) then I would reclaim 50% of the loan interest.

 

yeah that makes sense but my 0% overdraft was costing me nothing untill charges on a different account caused the managed loan...i dont mind paying my credit card ballance back as the loan is the same APR as the card was, i know i can claim interets on the say £400 worth of charges, and claim the charges them selves back - but why should i pay interest @ 17.9% on the £1000 that was previously an interest free overdraft? i never abused this account and never had any charges...i just dont see how its fair - in fact i think its irresposible lending as after i took out the managed loan (with little choice) i owed more than i started with and at a huge interst rate on something that would have cost me nothing to pay back!

[markd]

What this shows KJB is that HSBC don't really give a t*ss about yours, mine or anybody elses financial well being. At the end of the day their god is the bottom line, and if thats acheived by forcing people onto these god awful mananged loans, then its pats on the back all round for them and sod the rest of us!!

This site has really opened my eyes, and given me the courae to fight back, as I hope you're going to!!

[KJBoutcher]

The ML is mainly the HSBC credit card I had which was about £8K. Even though I was managing to keep payments going on it they royally botched things up for me by allowing the £800.00 transfer and everything snowballed...

 

So the CCard and the overdraft got lumped together totalling about £9.3K... As for the charges, I don't even want to think about them but I am just about to start looking into this side of things with the ML... I am also claiming against HSBC for the bank charges too so we will see what happens!

[Tigs33]

yeah that makes sense but my 0% overdraft was costing me nothing untill charges on a different account caused the managed loan...i dont mind paying my credit card ballance back as the loan is the same APR as the card was, i know i can claim interets on the say £400 worth of charges, and claim the charges them selves back - but why should i pay interest @ 17.9% on the £1000 that was previously an interest free overdraft? i never abused this account and never had any charges...i just dont see how its fair - in fact i think its irresposible lending as after i took out the managed loan (with little choice) i owed more than i started with and at a huge interst rate on something that would have cost me nothing to pay back!

 

Very true, well I think you have got a good reason to also claim the interest on the £1,000 overdraft.

 

So the only item you wouldn't include is the interest on the credit card

[Tigs33]

KJ, have a good look at the charges, I also think there is a possibility of claiming more of the interest on the loan if for example you used your credit card to pay for items you wouldn't normally because of the charges on your current account, a good example of this is food, how many of us have put our shopping on a credit card (and incurred credit card interest) because our current account didn't have the funds to pay for shopping?

[jo5ephedward5]

Very true, well I think you have got a good reason to also claim the interest on the £1,000 overdraft.

 

So the only item you wouldn't include is the interest on the credit card

 

yep - think i'll go that route...will start a threat in HSBC when i have my DSAR info back...

[Tigs33]

Good luck

[KJBoutcher]

KJ, have a good look at the charges, I also think there is a possibility of claiming more of the interest on the loan if for example you used your credit card to pay for items you wouldn't normally because of the charges on your current account, a good example of this is food, how many of us have put our shopping on a credit card (and incurred credit card interest) because our current account didn't have the funds to pay for shopping?

 

Hey Tigs33,

 

I will certainly be looking into this in more detail! One other thing, and apologies if this has been covered elsewhere, if I am successful with my bank charges claim (about £2416) is there any chance they will automatically use it to put towards the ML? Can they do that??????

 

Cheers, KJB

[Tigs33]

If you specicially ask for a cheque they have to by law send you a cheque (they have confirmed this) but they "could" call the loan in, although some people on this site don't think they would.

 

If they offer you ANY settlement make sure you ask for it in a form of a cheque if you do not want them to try and settle the ML first.

[Tigs33]

In case anybody is interesting on reading this thread, Janey managed to get the full amount of her loan £10,000 repaid back to her with her charges.

 

janeyb v Lloyds - MASSIVE SETTLEMENT !!

[sueprend]

Hi everyone, i too have a managed loan, the loan was a consolidation of my credit card, overdraft and remains of a personal loan ( which had never missed a payment). The total of loan is £7700 with £3000 on top of this for interest charges. I will be paying back £150 a month for 72 months. The amount of overdraft included is £1400 and I dont have a clue how to work out the interest that I am entitled to claim. Also, can I add this amount to my current claim or is it too late because I have sent prelim last friday for £2500 which is just my charges over last 6 years. I wish I could claim the whole lot back and get my life back again! Would appreciate some help!!!

[markd]

Hi Sue. Have you got statements for these accounts over the past 6 yeaars? If not, first thing is to get these all from HSBC. There are spreadsheets here http://www.consumeractiongroup.co.uk/forum/bank-templates-library/182-interest-calculation-spreadsheets.html where you can work out interest claimable on the overdraft (advanced) and then the 8% interest that you can claim when/if your claim gets to the MCOL stage.

It might be worth starting your own thread as well, that way you can keep all your info in the one thread for people to add help to!

[Guest cece_diamond]

(sigh) Where to begin?? ... I've just logged on this site to figure out if anyone has been cursed with these Managed Loans from HSBC.

 

I was a Graduate with a £1500 overdraft and a £2300 Credit Card with HSBC, I was temp unemployed and struggled to meet my bills, I went over limits and incurred charges and ultimately begged HSBC to 'help'. In my desperation the only 'help' offered was a Managed Loan, now this was marketed as a consolidated loan to cover my CC and overdraft and allow my account to run in 'plus' whilst making an affordable payment of £60 per month for the next 8yrs!!!

 

Sounds crazy I know but when your stuck and unemployed, anything sounds great right!?! Only 3 months later when I was working again did I realise I need to shift this managed loan for £3800, so I tried to get a balance transfer and another loan to clear this, then I discovered that I'm near enough walking around in the credit world with a tag by my name saying "HSBC owns this customer, don't give her anything".

 

Now 11 months into my loan, I've shifted a measly £200. I'm a little slow when it comes to interest charges and have no idea what the rate is im paying, but im guessing its extortionate as for every payment I make, they take back half in interest.

 

I wanted to start a case on claiming back charges on my student account and CC with HSBC but I cant even get past step 1 'open another account' as my credit score is that low and having the ML doesn't allow me to do anything!! I'm annoyed that I even took this ML as my overdraft was interest-free anyway, I genuinely thought I was just consolidating my debt .. but now im in a serious rut and HSBC hold the reigns

 

How do I find out what interest im paying/been charged for the ML? Will it be included in the SAR? How do I begin action action them? Can I also complain about the lack of clarity over what exactly customers are signing in regards to a ML? Does the banking code cover this? Lastly, what is CCCS ... would this be my next option to move forward?

 

Thanks!

[KJBoutcher]

If you specicially ask for a cheque they have to by law send you a cheque (they have confirmed this) but they "could" call the loan in, although some people on this site don't think they would.

 

If they offer you ANY settlement make sure you ask for it in a form of a cheque if you do not want them to try and settle the ML first.

 

I will make sure I request a cheque from them then, thanks for the advice!

 

Tigs33, I have had a look at my ML account on the HSBC webby and can see there are no charges, just my payments and the scary interest they apply. By the time I'm done I'll have coughed up about £22K, give or take, for an original amount of £9.3K. I feel sick. And very, very angry. From their mistake I am tied to them for 12 years and paying back more then double what I originally owed. HSBC, I am after you...

[KJBoutcher]

[quote name=cece_diamond How do I find out what interest im paying/been charged for the ML?

Thanks![/quote]

 

Hi cece,

 

I had a look at my own ML on HSBC's web site. You can sign in as normal and see how the account is being run, with all your payments and all the interest they add on. It's scary as heck.

 

Good luck!

 

KJB

[jo5ephedward5]

yeah its run like a credit card i noticed my interest is a fraction (like £1 a month) less now i have paid some off...its a poor show that they even offer them, HSBC are on my list - i will hunt them down!

[browneyes1980]

In may 2003 i was forced into a managed loan after being over my overdraft limit, behind on my HSBC mastercard payments and plus all the bank charges that were on my current account at the time, i also had a flexi loan of £2000 which i was repaying £80 per month back. After trying to pay my overdraft and charges for months (i was a single parent at time, working part time) i just couldn't get on top of it, i needed money to live aswell! they told me my only option would be to put my Mastercard, overdraft, charges and flexi loan into one managed loan (£3950), and because of my situation at the time, the only minimum payment i could make per month back was £60, which i've kept up with.

 

Considering this was all done in May 2003, up on checking what i've paid so far, i've only repaid just over £1000 in 3 years! and from what i gather, working it out it will take me a futher 8 years roughly to pay the rest off (£2900) If i could i would up my repayments, but at the moment it's just not possible, and the thought of having that debt over my head for another 8 years or so is really depressing, purely because i'm paying more interest on the damn thing than actually paying some off my loan (i must pay at least £30-35 a mth interest out of £60) i worked out alone that the interest i've paid so far totals to around about £1200.

 

I'm interested in knowing how to claim this back, as i should imagine it would end up i'd get more than what i actually owed in the first place hadn't they put so many charges on my current account at the time making me so overdrawn, i'm in the middle of claiming charges on my bank account at the moment, i filed my claim form (N1) last week in person at the county court, waiting to hear something now. Do i do the same (letter wise etc) for my managed loan?

[jo5ephedward5]

take the approch i'm going for:

 

DSAR

apply for charges back, plus the interest on the Managed Loan for these and anything that was at a lower APR as you wouldn't have been forced into paying them at the high APR of the managed loan if they hadn't charged you.

 

well thats my opinion anyway...then use what you claim to pay off the remaining ballance to stop whats left of the loan getting higher - though its so tempting to just blow it and carry on paying the £60 a month...esp when the debt stretches you into having no money for a life lol!

[Privatex77]

I also have a managed loan still open and which is being looked after by DG solicitors. I have put my Prelim letter to HSBC last week and specified that i would like the payment made to me in cheque. I have not missed a payment with DG solicitors since first contact and although the amount i would be awarded will finish the loan.

 

HSBC conned me into the loan to cover my OD only - they never mentioned what the conditions of taking the loaAN WERE LIKE. from a 1250 OD i will end up paying them around 2K at least. They are like the mafia with money. Surely this has to be illegal - HAS ANYONE CHECKED ON THIS?

[KJBoutcher]

I am currently disputing my ML with HSBC as I am sick to death of them kicking me while I am down. I asked for the loan to be looked at to see if it is valid as the only reason I am on the darn thing is down to HSBCs inadequate behaviour in the first place (see my original posts further up this thread). So I went ot my branch (forget dealing with the tele banking idiots; they either leave you on hold for an age, cut you off or refer you the your branch anyway). Cut the useless middle men out full stop.

 

I get there, explain my case and they try and suspend payments until the loan issue can be addressed. My hopes are dashed, no they won't suspend my payments. I am told to contact the tele banking service (nooooooooooo!) to see if they will give me a different answer. Yeah right. It was tele banking who the woman in branch spoke to herself! So I have now fired off a letter to HSBC once again, this time asking for a hold on the account for 28 days minimum and all recent paymnents to be returned while the account is investigated. Lets see what happens now.

[diddypony]

Glad someone else has had one of these "managed loans" thought it was just me. HSBC "introduced" me to this after it took away my overdraft & cc. I was so shocked at the time I just said ok, and I am paying dearly for it eversince !! After 3 years of paying £60 per month the loan has gone down a wopping £240 !!! (someone pass me a razor blade), Any advice out there. The only saving grace is my claim for bank charges going back 6 years has just begun and i am going to relish every minute of it !