I have a HSBC managed loan........ok breath

[aaron1980]

i have had it for about 4 years now and its never realy bothered me although its never got lower (about 5k) and i pay a really really outrageous interest rate on it. at the time i took it out i was taken into the manager of the HSBC in Beckehams office (only 19 at the time) and was told "your so in debt get this everything will be hunky dory" i now realise this was a bad move all round and am now paying £150 a month off it (the minimimum being £88 or there abouts) anyways i was wondering is there anything i can do about this unfair loan? i have written to them and they did provide me with a signed copy of the contract so i have gone that path! i am not sure whats next though? thanks people

[johnnymitch]

Hi aaron , welcome to the forum

 

There are many people on this this site who are in the same position as yourself ..... Managed Loans are horrendous..........

 

However , if you have the terms & conditions of your signed contract , they should indicate that this loan is a tempory measure to help you back on your financial feet and that it should be reviewed every (six?) months or so to see if it can be re- structured to a more acceptable level of repayments and interest.

 

If they have never reviewed this with you since it was taken out they are in breach of their own T&C s ........

 

Come back and let us know :

a. if you have the T&C s along with the contract ......

b. have the bank complied with the conditions for a Managed Loan ..... by reviewing your case ........

[aaron1980]

thats brilliant cheers for that, ill have a look for the copy of letter original contract now. is there a template for this reply? thanks for your help.

[aaron1980]

sorry to be a pain, but just in case i cant find the original copy of the contract do you have a link to the template request for the copy of the signed contract.

[johnnymitch]

There you go aaron - letter N is the one you want :

 

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

[johnnymitch]

btw ,aaron , I think you need to be in possession of the contract and T&Cs before you can send them a letter - once you've got those to hand we can find a suitable letter to challenge them with ....

[aaron1980]

Thanks very much for your time! i really do appreciate you being so welcoming and helful

[aaron1980]

can i just ask, on that letter template shall i also ask for a copy of the T&C's?

 

I think i may have lost allot of the stuff previously in the move to my new flat so i will just send off a new request today to the 8 canada square adress

Edited June 18, 2009 by aaron1980

[johnnymitch]

The first para of that letter says " together with any other documentation the Act requires you to provide" .

 

That includes T&C s aaron , it's not a proper agreement without them ...... they should be part of the signed contract .........

[aaron1980]

Hi people, ok got a copy of the credit agreement, not really sure what i am looking for but ill tell ya what it says and you can tell me if you need anything else:

 

Principle of loan £5850.00

 

interest of loand 13 9 %

(being 40% above the banks base rate)

 

APR 14.8%

 

no account has been taken in the calculation of this apr of any variation that may occur as a result of any changes in the banks base rate which may be varied by us from time to time at our discretion.

REPAYMENT

initial repayments £88.00

127 further monthly payments of £88.00

date of loan 18/06/04

 

LOAN TERMS

 

we will calculate interest on the daily clared balance of the loan account, on the basis that there are 365 days in a year this means that in a leap an extra days interest is payable we weill charge interest in arrears on the same day each month or the next working day. from the day that interest is debited to the loan account, the loan is incresed by that amount until it is paid.

 

REPAYMENTS

 

e may change the amount and number of your repayments to take account of any change in the banks base rate after the date of this arrangement

 

OK peeps not sure what else i might need to post on ehre from it?

 

can you help me?

[johnnymitch]

Can you post it up as a photobucket image , Aaron - makes it easer to see if it's all OK .

 

If you can't - there's a couple of things :

 

1 . I take it that it say's 13.9% and it's 4.0% above the base rate ?

 

2. Is your signature and that of the bank anywhere on it ?

 

3. Also , if this is a Managed Loan, it's supposed to be a short term loan to tide you over a rough period and should be reviewed periodically to see if you can be offered a 'restructure' with more beneficial (to you!) terms.

If they have never done this this then they're in breach of the conditions ......

[aaron1980]

to be honest the photocopy i ahve isn't great so not sure how it would come out on here.

 

i presume its 13.9% as there is no dot between the two amounts. but yes it clearly says interest 13 9% being 40% above banks base rate. APR is in a box which says 14.8%

 

my signature is on the copy yes.

 

they have never made any contact with regard restructuring the loan in any way, in fact they have never contacte dme about the loan full stop.

[johnnymitch]

Aaron, I think a read up on this thread may give you some guidance on how to proceed - some of it is 'irrelevant' or off - topic , but if you persevere you'll get the picture ..........

 

http://www.consumeractiongroup.co.uk/forum/hsbc-bank/15457-who-has-had-managed.html

 

Of course , come back if you're in any doubt and someone will answer you ......

[aaron1980]

i know its hard to keep explaining everything simply and i feel like i am bugging your guys but posts like:

 

I am due to put my Claim in next wednesday (finances permitting)

 

I claimed £3498 for my charges

£1023 (out of £1800) for part of my managed loan which I can prove accumulated because of charges. (I had that amount on my overdraft at the time of being forced into taking the loan)

I am claiming £143.77 for the % of the loan protection that applies to the part of my loan I am claiming. (If you only claim part of the loan you can only claim the same % part of the protection)

 

£4665.37 total.

 

I will add 8% to each charge and add that when I file my claim, and the £120 in costs.

 

So it will be about £5000 in the end.

 

The loan amounts and payments were all on my statements as I took it with HSBC, it shows clearly when, how much and the PPI.

 

Anyone with statemements should be able to do the same.

 

if you feel brave and you can prove you had this loan to pay off charges then you can try to claim contractual rate of interest on the loan amount (ie if they were charging you 16.9% apr for the loan you can ask for it back with this interest added to the amount of the loan)

 

Im not claiming interest as I only had the loan for a few months then paid it off as I found a cheaper deal, as I was a homeowner.

 

BAFFLE ME

[aaron1980]

Hey johnny, sorry buddy but that thread baffled me. so i am not really sure what i can claim for or how i got about working out the interests and the charges

[SpartanKing]

Hey Jonny,

 

You seem to be pretty clued up on some of this stuff and was wondering if you can help me.

 

I have just joined this forum as I am keen to see if any of my credit agreements are unenforceable.

 

I presently have an issue with a couple of things to do with HSBC and was wondering if you could asist and give me some useful advice on this one.

 

Firstly I had a £25,000 unsecured loan with HSBC in 2004 which I paid for 2 years before it was restructured into a manged loan as I could not afford the repayments of over £600 a month. My question is, can I still contest this original personal loan, and if it is unenforceable, what I am entitled to?

 

Secondly, I now wish to contest the managed loan and have received the CCA which appears to be in order, however:

 

1: Having read all about what constitutes an enforceable agreement I think they have covered everything, however they have never notified me of any changes on the interest, or how this would affect my monthly payments which it says they will in the agreement. Is this grounds for anything? Or is there anything I can address which I may have missed?

 

2. Most importantly. If the original personal loan can be contested and found to be unenforceable, then does that mean by default that the managed loan also becomes null and void as a result of being established to cover the original personal loan that was unenforceable?

 

Some quality knowledge and advice on this matter would be greatly appreciated.

 

Regards,

 

Spartan

[johnnymitch]

Hey Jonny,

 

Hi SpartanKing , welcome to the forum

 

You seem to be pretty clued up on some of this stuff and was wondering if you can help me.

 

I have just joined this forum as I am keen to see if any of my credit agreements are unenforceable.

 

I presently have an issue with a couple of things to do with HSBC and was wondering if you could asist and give me some useful advice on this one.

 

Firstly I had a £25,000 unsecured loan with HSBC in 2004 which I paid for 2 years before it was restructured into a manged loan as I could not afford the repayments of over £600 a month. My question is, can I still contest this original personal loan, and if it is unenforceable, what I am entitled to?

 

I must admit I'm not sure about this one, SK , you could ask them via a CCA for a copy of the original agreement , but if it was restructured into another loan , they may say they haven't got it, although they should have if it finished less than 6 years ago (2006?)

Secondly, I now wish to contest the managed loan and have received the CCA which appears to be in order, however:

 

1: Having read all about what constitutes an enforceable agreement I think they have covered everything, however they have never notified me of any changes on the interest, or how this would affect my monthly payments which it says they will in the agreement. Is this grounds for anything? Or is there anything I can address which I may have missed?

 

A Managed Loan is supposed to be a temporary measure to tide you over a rough , financial period - it's not suppposed to be long-term and should be reviewed periodically to see if if can be re-strutured to your advantage - not theirs....... if no reviews have been done you may have a case to report this to the FOS - it may constitute a breach of the Managed Loan agreement , which you should also ask for as part of your CCA Request .

2. Most importantly. If the original personal loan can be contested and found to be unenforceable, then does that mean by default that the managed loan also becomes null and void as a result of being established to cover the original personal loan that was unenforceable?

 

I think it's best to take the CCA route first to find out exactly what they've got on you - see if they can produce viable agreements - then you can work out your next moves from that point ....

 

Some quality knowledge and advice on this matter would be greatly appreciated.

 

Regards,

 

Spartan

 

I'm no expert SK, but I've picked up a few bits and pieces along the way - no doubt if I'm wrong though ,someone will jump in and say so ......

By all means come back and ask if you're still in doubt - someone will answer , and we're user-friendly ....

[johnnymitch]

Sorry aaron , just realised we're hogging your thread -

 

SpartanKing if you need more info , please open your own thread - just use the 'New Thread ' button, which is at the top or bottom of the site page . That way you'll get info which is more pertinent to you and cannot be confused with the answers to someone else's questions .