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Who has had Managed Loans?


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HSBC tried to force my husband down the managed loan route to pay off an overdraft almost entirely composed of their bank charges (the snowball effect). I insisted that he sought independent free advice from the Consumer Credit Counselling service and they suggested a Debt Management Plan. HSBC didn't like this response so the matter was referred to their solicitors who ignored my husbands letters until I rolled my sleeves up & got stuck in (I have legal qualifications which made them back down & be reasonable).

 

Please see the CCCS re advice even if you've been forced into taking out a managed loan. Open a parachute account 1st. It gets ugly but no more ugly than paying HSBC interest for a loan you wouldn't have needed if it wasn't for their unfair charges. Besides, isn't it funny they won't give you a loan at a reasonable rate to pay off your debts but will then force you into a managed loan which charges more interest?!!

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I have a managed loan as a result of my overdraft charges I am now trying to reclaim.

 

From February to July 2005 I was in some personal and financial difficulty and repeatedly requested an overdraft facility of £300 from HSBC. They consistently refused and my financial situation meant I became overdrawn anyway. As a result HSBC charged me over £1000 in 6 months in charges related to being overdrawn until eventually my local branch stepped in and gave me a £1020 managed loan. Needless to say my account has remained firmly in credit ever since.

 

As a result of the charges my account spiraled from £150 OD approx to £1020 oD in 6 months. I could have paid back the £300 overdraft had they provided it but the ever escalating charges made it impossible and my debt just got bigger month after month.

 

My contention all aong was that had HSBC given me an overdraft I would have recovered quickly. As you can see the managed loan was for only £20 more than they had charged during the period.

 

I am grateful to my local branch for getting involved before it got any worse but it should never have got to that position.

 

I am in the prcoess of reclaiming the bank charges.

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  • 2 weeks later...

does anyone yet know if theres any get out clause for these wretched things? ive not yet spoken to CAB but i intened to at the first available chance of peace and quiet - 3 yr old daughter and im 8 months pregnant, hubby works full time, need i say more lol. do you think we can put accounts like these in dispute while trying to figure out what can be done? im sure that being made to sign under duress is something that is not legal? and surely should make contract void, as said by another poster earlier?

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I had completely forgot about my Managed Loan with HSBC until I came across this thread.

I decided to have a quick look on the status of the loan that I was forced into back in September 2004........

I was appalled to see that in 2 years I have only managed to pay off just over £600 because the other £800 went on interest!!!!! :o

 

:mad:

 

Sep 04 - Managed Loan - 2,670.00

Nov 06 - Current Status - 2,068.19

Sep 04 - Nov 06 - Paid IN - 1,486.80

Sep 04 - Nov 06 - Interest Paid - 804.61

Total amount paid off in 2 years - 601.81

NatWest - £3750 - Settled

HSBC - £1100 - Settled

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I'm not sure...I remember reading something a while back stating the banks were acting illegally by forcing customers to take out their payment protection as a condition of the loan - is this an avenue to explore?? Anyone able to shed any light?? Please!?

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I'm not sure...I remember reading something a while back stating the banks were acting illegally by forcing customers to take out their payment protection as a condition of the loan - is this an avenue to explore?? Anyone able to shed any light?? Please!?

 

Are they taking PPI out on managed loans????

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Has anyone had a look at the implication on the interest rate we could charge and/or damages we could claim when claiming back unlawful charges when they've been put into a managed loan?

 

For example:

My managed loan is made up of approx £1000 of unlawful charges which meant I couldn't clear my overdraft as any money going in was being swallowed by charges. I was having to spend on CCs for food etc when they wouldn't increase my overdraft limit to keep up with charges & ended up being forced to take out an £8000 loan to cover the authorised overdraft (about half made up of unlawful bank charges) + unauthorised overdraft (made up entirely of bank charges), my CC (well managed & paid off in full each month), my partner's CC (also well managed & paid off in full each month) plus my interest free student overdraft. I'm now being charged interest on all these accounts where, if I hadn't been charged in the first place, I would only have been paying interest on the overdraft.

 

HSBC have basically screwed me financially. I then had to take out a student overdraft at a different bank which I'm now unable to pay back & am being charged interest on because of the monthly payments on the managed loan. At a rate of 11% PA for 9 years, I'm paying though the nose for HSBC's unlawful charges. Is there any way we can claim for this when we claim back our charges?

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  • 3 weeks later...

I also have a manged loan due to out of control overdraft caused mainly due to continual application of unlawful fees on the account. Still a couple of years from paying it off. Any help with regards to this would be greatly appreciated

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Hi there,

and to think HSBC made up the term ' managed loan' just for me! I had never heard of it before until they offered it to me.

Basically myself and OH were given £5000 o/d on 2 accounts as they had been upgraded to premier a/c's. This was only aout 2 years ago. Needless to say, we maxed out our o/d's and OH credit card (9,000) as we went through a very difficult financial patch.

Consequently, our 'personal banking manager' offered us (our only option) a managed loan to cover o'd's and cc for £18,000 payable over 11 years!

It really was 'sold' to us as though they were doing us a big favour! I've only just realised that of the £254 we pay every month, the interest is £180! I just couldn't believe it.

We are currently claiming back just over £8,000 from HSBC for unlawful charges and would like more than anything to also sort this ML out.

Can anyone help? Many thanks

Lisa

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Hi Lisa,

 

I had a managed loan with HSBC too, and after many phone calls and the debt eventually going to a DCA, they froze the interest on the account. Makes a huge difference to see your debt dropping down each month!!

 

Cheers,

Lee

HSBC - S.A.R - (Subject Access Request) 30/10/06

 

07/11/06 - Letter refunding cheque and informing statements will be along shortly.

08/11/06 - Statements from Jan-2001 to Jan-2004 rec'd. Requested more but am waiting.

09/11/06 - Sending of prelim request for refund! £913.50

27/11/06 - Letter from Royal Mail, original prelim lost in post!!

06/12/06 - Another prelim sent :(

19/12/06 - Reply from Mr Langdale saying complaint received and that I'll have a proper response by 5th January 07....

 

Capital One - S.A.R - (Subject Access Request) 31/10/06

 

Sent off prelim for £392.00 - All adds up I suppose! 06-12-06

Partial Offer received 19/12/06 - £152, offer accepted as part settlement only......

 

GE Capital Bank - S.A.R - (Subject Access Request) 31/10/06

 

Store card account. Charges approx £200, prelim being sent off in the new year!

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Good grief!!!! £33528 you will end up paying back after 11 years!!

 

I have managed to get the loan interest on my husbands loan refunded and the managed loan is now paid off, however with him the original amount of the loan was covered by the excessive charges, and looking at your details this doesn't appear to be quite the case.

 

I think you have a couple of options here, get your charges back as quickly as possible and pay off the majority of the loan and ask the bank if they can then give you a normal personal loan for the outstanding.

 

or you could just say to the bank, sorry we cannot afford the repayments and ask to be put on a payment plan which no doubt they will sell the debt onto a debt collection agency, I have done this with a loan from HSBC, and I am paying a reduced amount (my original bank loan was for £30,206 including interest, it was sold to a DCA and I now owe them £13,000 and I pay no interest, with a monthly payment of £190) So I have just under 6 years to pay this off, if it was the original £30,206 I would have been paying £590 per month :eek:

 

You could still do your claim and reduce down the amount to the DCA.

 

I think it could be a good idea to speak to the Citizens Advice Bureau.

 

Good luck

 

 

 

Hi there,

and to think HSBC made up the term ' managed loan' just for me! I had never heard of it before until they offered it to me.

Basically myself and OH were given £5000 o/d on 2 accounts as they had been upgraded to premier a/c's. This was only aout 2 years ago. Needless to say, we maxed out our o/d's and OH credit card (9,000) as we went through a very difficult financial patch.

Consequently, our 'personal banking manager' offered us (our only option) a managed loan to cover o'd's and cc for £18,000 payable over 11 years!

It really was 'sold' to us as though they were doing us a big favour! I've only just realised that of the £254 we pay every month, the interest is £180! I just couldn't believe it.

We are currently claiming back just over £8,000 from HSBC for unlawful charges and would like more than anything to also sort this ML out.

Can anyone help? Many thanks

Lisa

REFUNDED

Hubbys - HSBC £4,165 paid 18/8 after MCOL issued :)

HSBC - £651 paid 18/8 after MCOL issued :)

HSBC - £147 Prel 7/8, LBA 21/8, MCOL 6/9 £241

Hubby Halifax - Prel 29/7 £215, LBA 21/8, Offer rec. £110 22/8, MCOL 6/9 £298

Abbey - £2758 - Prel 26/6, LBA 10/7 - MCOL 26/7 £3,391, offer 25/8 £1,755.94, paid £3567.32 after Case manag hearing

Barclays - £675 Prel7/8, LBA 21/8, offer received £300 MCOL 6/9 £998 - Paid £1,012 before going to Court

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Cheers Tigs,

really not sure what I should do about the ML. Looking back, they must have been rubbing their hands when they saw what they could earn out of our misfortune.

How can they refuse a 'normal' loan and then give you another loan with astronomical interest.

Fortunately, we are in a better position financially now so we can afford it but the interest really grates me.

Our credit rating is still poor though so it's not as though we can go elsewhere for a better rate.

Lisa

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Difficult choice Lisa, with my situation my credit rating was so poor anyway I decided another one really didn't make that much difference, I am glad I did go to the Citizens Advice though as they helped me out a lot and I no longer worry about these debts, and because of this site I do not owe any money to two DCA as they couldn't provide me with copies of the original agreement.

 

I suppose you really have to weigh up if you are happy for them to have that level of interest off you for the next 9 years, I wouldn't be, if I could get a DCA agency to deal with the debt, don't forget a ML doesn't look good on your credit rating either.

REFUNDED

Hubbys - HSBC £4,165 paid 18/8 after MCOL issued :)

HSBC - £651 paid 18/8 after MCOL issued :)

HSBC - £147 Prel 7/8, LBA 21/8, MCOL 6/9 £241

Hubby Halifax - Prel 29/7 £215, LBA 21/8, Offer rec. £110 22/8, MCOL 6/9 £298

Abbey - £2758 - Prel 26/6, LBA 10/7 - MCOL 26/7 £3,391, offer 25/8 £1,755.94, paid £3567.32 after Case manag hearing

Barclays - £675 Prel7/8, LBA 21/8, offer received £300 MCOL 6/9 £998 - Paid £1,012 before going to Court

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Yes peanut I would wait until you have a reply (or not ;) ) to the CCA before deciding your next course of action.

REFUNDED

Hubbys - HSBC £4,165 paid 18/8 after MCOL issued :)

HSBC - £651 paid 18/8 after MCOL issued :)

HSBC - £147 Prel 7/8, LBA 21/8, MCOL 6/9 £241

Hubby Halifax - Prel 29/7 £215, LBA 21/8, Offer rec. £110 22/8, MCOL 6/9 £298

Abbey - £2758 - Prel 26/6, LBA 10/7 - MCOL 26/7 £3,391, offer 25/8 £1,755.94, paid £3567.32 after Case manag hearing

Barclays - £675 Prel7/8, LBA 21/8, offer received £300 MCOL 6/9 £998 - Paid £1,012 before going to Court

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  • 4 weeks later...

hi, i recently won my case for both my business and personal accounts just before xmas totalling just under £6k! so thanks to everyone for their help and support, but something was mentioned to me from another memeber and im 'quite keen' to follow this up (read that as sue them again for more!!) i have a managed loan which in part incorporates a persoanl loan and some unlawful charges!

 

the story is as follows:

 

during a bad period in 2004/2005 and unable to keep up with my personal loan repayments and other miscellaneous SO/DD's i was forced into taking out a managed loan for about £6k approx..... which i managed to sort of repay during this difficult time for about 10 months or so (and still sometimes paying late and missing payements) i was then hit by another low and forced to take out a slightly higher amount for £7130 which i have been steadily paying back £116 pm since november 2005 (and i have been on time and not missed a single payment) but im getting heavily screwed on ridiculous amoutns of interest 20% i think, and i still owe £6500 despite having paid back over £1600 already!

 

now im not unreasonable and i know that some of the managed loan was to pay off an exisitng personal laon that i had.... so, baring in mind 'some' of that managed loan incorpaorates these charges how do i proceed to make my 2nd claim against them?

 

and can i add contractual intetrest too? (btw - what is contractul interest?) how do i know if this applies to me and i can claim for that too?

 

i am really confused on this one and just want to make sure this is one i can win...

 

 

the loan was for £7130 and it was taken out in nov 2005 and currently owes £6500 odd. im been screwed heavy on interest! id be generous and say maybe only about 1.5k -2.5k max was for the charges that are part responsible for that amount...whats your thoughts and advice on how i should proceed - if at all.

 

many thanks

 

Pete

HSBC BANK

** DECEMBER 2006 - RECEIVED CHEQUE FOR FULL AMOUNT!!!! ** £5967.00:)

LLOYDS TSB

**JANUARY 2007- RECEIVED CHEQUE FOR FULL AMOUNT!!!! ** £1340:)

HSBC BANK - Managed Loan/Interest

still chasing, have submiited claim thru MCOl - date sent to my local court - claim is going ahead Jan 29th 2008 :(

CURRENTLY CHASING

NATIONWIDE (WIFES ACCOUNT)

HSBC (managed loan)

others won:

CAPITAL ONE C/CARD (mine & wifes), :)

BOXCLEVER TV RENTAL, BHS STORECARD, BLACKHORSE FINANCE,HSBC PPI INSURANCE FOR SBL, PPI INSURNACE FO LLOYDS TSB LOAN,

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After many long months battling with HSBC to sort my managed loan fiasco out, I have received their final response (Iv'e been writing back and forth with them since August 2006) so now I am off to the Ombudsman.

 

I am absolutely sick to death of this whole thing, they forced me into the ML because of their own uselessness: I have asked on countless occaisons that the full circumstances be taken into account (I was pushed down the ML route because of HSBC forcing me overdrawn by allowing an £800 S/O when just the previous month they returned unpaid due to insufficient funds an amount far, far less). It seems they can make it up as they go along.

 

They'll allow you overdrawn by almost a grand so you get into trouble but when it comes to a much smaller sum they'll return it unpaid and add charges too. Lucky me. Incompetant staff, inconsistent decisions, blanket refusals to assist and sheer arrogance have been following me about since this mess went critical last year. Well, I am not stopping till it's sorted out. Watch this space kids.

WON!

Cahoot - Prelim 18/8/06 - LBA 1/9/06 - MCOL 15/9/06

GE Money - Prelim 10/8/06 - LBA 1/9/06 - Cheque arrives 7/9/06

HSBC - Prelim 5/8/06 - 10/8/06 - LBA 18/8/06 - Partial offer 24/8/06: Rejected - MCOL 7/9/06 - 21/9/06 Full Offer & Confidential.

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Also it may be useful if we could try and get a figure together to see how many of us poor HSBC 'customers' have been lumbered with a managed loan, I think it may have been been talked about elsewhere on this thread somewhere. Perhaps if the FSA, OFT or Ombudsman knew how widespread a problem these things are then action to stop HSBC ruining thousands of other people's credit files and lives might actually be slowed or even be stopped for good. Not sure how we can go about compiling a list, maybe someone out there knows?

 

The more I think about managed loans and having to deal with such a useless bunch of money grabbing, life ruining halfwits (and thats being polite) the more my blood boils.

WON!

Cahoot - Prelim 18/8/06 - LBA 1/9/06 - MCOL 15/9/06

GE Money - Prelim 10/8/06 - LBA 1/9/06 - Cheque arrives 7/9/06

HSBC - Prelim 5/8/06 - 10/8/06 - LBA 18/8/06 - Partial offer 24/8/06: Rejected - MCOL 7/9/06 - 21/9/06 Full Offer & Confidential.

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