Is This Irresponsible Lending? (Yes, involves a managed loan)

[djwigster]

See my other thread http://www.consumeractiongroup.co.uk/forum/hsbc-bank/210273-growing-hsbc-managed-loan.html ref my wife's shenanigans.

 

I thought Id start a new one as its on a slightly different tack, and dont want this to get lost in the middle of my other one.

 

Dec 2003 - Personal Loan for £5700 over 60 months taken out (£9700 with PPI and Interest)

Feb 2004 - Above loan re-written, now £10000 over 60 months (£15400 with PPI and Interest)

*** Apr 2004 Request for overdraft declined "recommended exposure 4400, current 15233, proposed 15283"

Nov 2004 - Above loan re-written, now £15000 over 96 months (£27500 with PPI and Interest)

*** Mar 2005 Overdraft of £300 set up

*** Jun 2005 Application for personal loan (at lower APR) to write off above loan declined due to credit score

Jul 2005 - Managed loan for £17000 over 144 months set up to replace personal loan (£32000 with Interest, no PPI)

*** Oct 2006 Application for personal loan to write off above managed loan declined due to credit score

*** Nov 2007 Application for personal loan to write off above managed loan declined due to credit score

*** Mar 2009 Request to rewrite managed loan over 96 months at slightly lower payments accepted, as long as it

remains a managed loan (This option was never taken up as I then found out about all of this).

 

So, to recap we have:

 

- A personal loan increased from £5700 to £15000, even though they decline what looks like a £50 overdraft due to current exposure being too high (I will be tackling the PPI part in due course)

 

- Request for a better APR personal loan being declined and then managed loan with £15000 INTEREST being OK the next month (surprise surprise).

 

- Once they have hooked her onto the managed loan (she didnt fully understand the consequences), they then refuse 2 requests to go back onto a personal loan...

 

- ...but they are later willing to re-jig the figures as long as it stays as a managed loan (and costs her a lot more than any of the personal loans they'd previously refused)

 

----

 

Sorry for the long post/rant, but this really gets my blood boiling as it seems she has been steered into whatever gains the most money for HSBC.

 

Is there anything I can do from the irresponsible lending point of view in case my "unenforcability" argument on the other thread fails?

 

Thanks

[Castlebest]

The problem is there is nothing wrong with irresponsible lending, its great, we have all been there when the bank say yes you can have £XXXXX... until ask for their money back .

 

Managed loans are perfectly legal and actually the way HSBC run them, a'rnt a lot different from a personal loan apart from the interest rates.

 

What I would say is you need to check the PPI on those loans, HSBC have a habit of charging a one off premium at the start of the loan and then not crediting anything back when the loan is changed and new PPI is added so I would almost guarantee your paying PPI on PPI... in other words its just another fee.

 

pete

[djwigster]

Thanks for the reply Pete. I understand what youre saying, it just seems a bit unfair of them to refuse a personal loan one minute, but then agree to a loan with £15000 of interest on it...almost a prey on somebody who wouldnt have heard of "front loaded insurance" let alone understood its ramifications.

 

Ref the PPI, there was a couple of refunds etc, but I need to go through this in more detail. There is nothing else about PPI in the SAR (demands and needs sheets, eligability reviews etc), so I will definitely be tackling them about these.

[Castlebest]

Thanks for the reply Pete. I understand what youre saying, it just seems a bit unfair of them to refuse a personal loan one minute, but then agree to a loan with £15000 of interest on it...almost a prey on somebody who wouldnt have heard of "front loaded insurance" let alone understood its ramifications.

 

Unfortunately, even though Charles Dickens warned us of the effects of usury over 100 years ago Scrooge is alive and very well.

 

pete

[djwigster]

Unfortunately for them, so is CAG!!!