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My HSBC Personal Loan - Some Guidance Needed


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Hi everyone,

 

I took out a loan with HSBC back in October 2007 to pay off student debts - overdraft, credit card etc. I was looking over my agreement this morning and decided that I should cancel the Protection Plan: 1) As I don't feel I'm gonna need to use it; 2) I've heard a lot of bad reports from people who have lost their jobs etc. only to find out that the bank will not honour the Protection Plan; and 3) It is adding £1,071 to the amount I have to pay back. I know now that I should not have taken the Protection Plan form from the beginning, but I was made to believe at the time that I had no choice but to take it. I am currently paying £93.93 evey month towards the loan.

 

I phoned HSBC this morning to be met with a very friendly member of staff. This surprised me as it is the first time in 8 years that this has happened. I explained that I wanted to cancel the Protection Plan as my agreement said it was optional. I was told this was no problem and was put on hold while they worked out my new payments. I really thought this was great as I was going to save myself some money :eek: :eek:

 

When the Advisor came back she told me that if I cancelled the Protection Plan my repayments would go from £93.93 a month to £117 a month - nearly £25 a month more than what I'm paying. She came off with some waffle about what I've paid so far has just been interest and not capital so by cancelling the Protection Plan I have to start paying interest again.

 

Please please can someone advise me. Can the bank do this? I've had nothing but problems with HSBC from the day I joined, with bank charges etc. I thought today maybe something would work in my favour, but this is ridiculous.

27th October: Data Protection Act 1998 Subject Access Request

8th November: Letter received from HSBC - Statements to follow

9th November: Bank statements arrive

12th January: Preliminary Approach for Repayment

22nd January: Letter received from HSBC - they will be looking into matters raised

30th January: Letter Before Action sent

24th February: Letter received from HSBC (dated 6th February) offering £240

28th February: Claim issued via Money Claim Online for £326.28 (including 8% interest)

1st March: Letter to HSBC declining offer

5th March: Notice that Acknowledgement of Service has been filed

29th March: Notice of Transfer of Proceedings

25th April: Notice of Allocation to the Small Claims Track

15th June: Court Bundle sent to Court

25th June: Offer received from DG Sols.

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Hi YV01 welcome to the forum :)

 

I've heard some airy-fairy statements from banks while on this forum , but that one just about qualifies for the loopiest , I think . :rolleyes:

 

However, I think you're probably better hopping over to the PPI forum and open a thread and copy in your text above ....... they've got very good advisors on there and they'll keep you right with your claim....

 

Payment Protection Insurance (PPI) - The Consumer Forums

 

Best of Luck with that ..........:D

Nemo me impune lacessit

 

 

Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

 

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If you're also doubtful about your LOAN - which sounds to me like a dreaded 'Managed Loan ' :eek: come back and we'll see if you may have a case to dispute it if it was forced on you ........

Nemo me impune lacessit

 

 

Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

 

If you think I've helped you please feel free to tickle my star :-D

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Cheers for the info Johnny. Will check out that other forum.

 

I am very doubtful about my loan as it seems I'm going to be paying it back forever!! Any help would be appreciated.

27th October: Data Protection Act 1998 Subject Access Request

8th November: Letter received from HSBC - Statements to follow

9th November: Bank statements arrive

12th January: Preliminary Approach for Repayment

22nd January: Letter received from HSBC - they will be looking into matters raised

30th January: Letter Before Action sent

24th February: Letter received from HSBC (dated 6th February) offering £240

28th February: Claim issued via Money Claim Online for £326.28 (including 8% interest)

1st March: Letter to HSBC declining offer

5th March: Notice that Acknowledgement of Service has been filed

29th March: Notice of Transfer of Proceedings

25th April: Notice of Allocation to the Small Claims Track

15th June: Court Bundle sent to Court

25th June: Offer received from DG Sols.

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There's a lot of info (and horror stories) about Managed Loans on these links YV01 - lot of reading some of it irrelevant , but if you pick and choose you can get some useful info .........

 

http://www.consumeractiongroup.co.uk/forum/hsbc-bank/139521-managed-loan.html

http://www.consumeractiongroup.co.uk/forum/hsbc-bank/162162-advice-managed-loan-please.html

 

 

http://www.consumeractiongroup.co.uk/forum/hsbc-bank/15457-who-has-had-managed.html?highlight=who+has+managed+loans

 

on a happier note - here's a link I think is very good for people to take a look at as it may be helpful - it's got some good ideas:

Taking back control of your financeshttp://www.consumeractiongroup.co.uk/forum/hsbc-bank/115368- hsbc-upgrade-declined.html#post1148578

 

You should also be aware that Managed Loans were supposed to be short term to help you over a sticky period - they should have been reviewed regularly by the bank to see if they could be restructured to your advantage , not theirs ..... if this hasn't been done , you may have a case for breach of the agreement - but you'd need to get a copy of the agreement first to find out .......

 

Again , come back if you have any questions - we'll do our best to answer :)

Edited by johnnymitch
removing font marks..........

Nemo me impune lacessit

 

 

Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

 

If you think I've helped you please feel free to tickle my star :-D

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YV01 - I am in a similar position to you, took out a loan in 2007 with an APR of 8.9% ( Although agreement states 15.9% but thats another story ) i recently found out about the PPI & arranged a meeting with a financial advisor at the HSBC to get it cancelled, i was told that the loan would be have to be re-structured with an APR of 18.9% & that by cancelling the PPI i would be saving £2.00 per month! Wrote a letter to their head office asking for this in writing as i was of the opinion that this was wrong & they confirmed that i was given incorrect information & that the loan has to be re-structured with the same APR as when i took out the original loan, keep at them, try to get everything in writing & hopefully you will get YOUR money back. Good Luck.

  • Haha 1

Debt Free Since 1st September 2009:D

 

Target Savings For 2010 = £1000:)

 

Savings So Far = £700:lol:

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  • 2 weeks later...

Hi,

 

I received a reply to my letter from HSBC this morning. Full of the usual, "sorry you have found it necessary to complain blah blah blah". To enable a full investigation to take place they want specific reasons why I think the plan was mis-sold.

 

They also say that Ineed to visit a local branch to cancel the protection plan and restructure my loan - if this is the case why was I told it could be done on the phone? :evil: They say that the new loan will be on the same basis with the interest rate being honoured.

 

Any suggestions on what my next move should be?

 

Cheers.

27th October: Data Protection Act 1998 Subject Access Request

8th November: Letter received from HSBC - Statements to follow

9th November: Bank statements arrive

12th January: Preliminary Approach for Repayment

22nd January: Letter received from HSBC - they will be looking into matters raised

30th January: Letter Before Action sent

24th February: Letter received from HSBC (dated 6th February) offering £240

28th February: Claim issued via Money Claim Online for £326.28 (including 8% interest)

1st March: Letter to HSBC declining offer

5th March: Notice that Acknowledgement of Service has been filed

29th March: Notice of Transfer of Proceedings

25th April: Notice of Allocation to the Small Claims Track

15th June: Court Bundle sent to Court

25th June: Offer received from DG Sols.

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I received a very similar one to you, they also sated that they were investigating into the loan & to give them 4 weeks but, if they needed to take longer ( Another 4 weeks ) they will inform me by letter. Lo & behold i recieved another letter a couple of days ago saying that they will require another 4 weeks & thus taking the total time allowed, think that at the moment you have to give them the required time to investigate & then act upon these findings once they get back in contact.

Debt Free Since 1st September 2009:D

 

Target Savings For 2010 = £1000:)

 

Savings So Far = £700:lol:

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Yes you have to give them a reasonable amount of time - but chase them when the limit they've set is up .......

 

It would probably be best to pop into the branch to restructure your loan YV 01 , that way when you're face to face there's less likelihood of 'misunderstandings ' (if you know what I mean ) .

 

Also make sure that they use the same rate of interest as before (see mangle #06) ......

 

You also want to insist that the refund of PPI is to be paid to you by cheque (which you can lodge in another bank ) so they don't use it to reduce your Loan under 'Right of Set-off ' . :)

Nemo me impune lacessit

 

 

Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

 

If you think I've helped you please feel free to tickle my star :-D

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