Recieved notice of hearing for "Stay to be lifted" on 3rd March - Any advise?

[johnnymitch]

Hi Veester

 

You are possibly on their target list as well for a managed loan. just be very, very careful with them - i'd never advise anyone to let them bestow one on you. it happens when you are deeply overdrawn - charges every month, then they present it like the holy grail - they will loan you the money to pay off the overdraft - you'll be back in the black - hurrah! and maybe even a little extra to spend on whatever you want. it's a con! you will be paying for that little loan for a long, long time to come - and i mean years and years and years! the loan rate is way above the norm - like at least 10 points higher. they pay themselves the interest every month, month in and month out and very little off the principle of the loan.

Ive seen probably hundreds on this forum who are struggling with managed loans. so, sermon over - try to keep your head above water and do what you can to clean up your financial act but under no circumstances fall for hsbc's managed loan - it is like indentured slavery! you will live to regret it.

 

 

[johnnymitch]

Ar-r-r-rg--g-gg-hhhhh! Beat me to it again pete -

[veester]

Right Right - I understand.

 

They offered it to me a few weeks back - and i declined straight off - i didn't even listen to the details of what the offer might entail - i don't want to increase my debt burden.

 

My 'hardship' case is being reviewed by the FOS, and i thought i might go back and have a peak at what they would offer including interest rate/payments et al.

 

Appreciatte the advice - i.e. No! unless the terms are favourable.

That's enough for me

 

Cheers

[freakyleaky]

I doubt the terms would be favourable to anyone but the Bank. Try and avoid consolidation & managed loans at all costs!!!!!!!

 

Good luck and keep us updated.

[lateralus]

freaky, hi luv - long time no see...........

 

 

just to second or third or fourth what has been stated already.

managed loans are to be avoided at all costs -

take a look at the total number of posts by pete (castlebest), john, freaky and myself..... granted i've not been on a lot lately - but believe me - there was a time i practically lived on this site - responding to about 30 people a day - every day...... have gone into semi retirement with the court delay; my point - - - together - these 3 and myself have listened to probably a total of a thousand plus people - all hsbc customers and a good portion of them struggling with the harness of managed loans.

 

don't do it.............

 

my personal experience was with my son's managed loan - presented exactly that way to him - take care of that big overdraft we've been allowing you to expand by the month, have a little extra for yourself, it will be so easy to manage.........yeah, right...... after a couple of years struggling with the new overdraft (because it was so easy) and the managed loan getting bigger through interest charges he finally told me about it - we got £2k plus back for him on charges and he put that onto the m.l. and still he owed a bundle. he's well and truly out of it now but will still owe me for awhile yet (talk about the bank of mum and dad!) but i'd rather do it this way -

he now has an account with halifax that doesn't allow overdrafts and guess what! he now lives within his means and hopefully will be debt free pretty soon.

 

best of luck to you - hopefully your case will be sorted sooner rather than later - but steer clear of the managed loan, please!

 

if you want some more m.l. horror stories - plow through this:

Who has had Managed Loans?

[veester]

Fair points you raise; i just spoke with HSBC to get a run down on what the "consolidation" loan entailed.

 

So, basically they said:

 

A) They take the Credit Card & Switch Card; provide a SOLO card on a basic account with no overdraft

 

B) 12.7% APR 'managed' loan for my total HSBC debt of £7080 (total repayable over 5 years of £9460)

 

C) I can make overpayments

 

D) No additional borrowing from HSBC during loan period.

 

Doesn't sound like all that good a deal to me tbh...just doing the basic maths.....

[johnnymitch]

IMHO it's not a good deal at all veester, you'll barely be paying off the interest and if you miss one payment - your fault or not - they can charge you extra and 'restructure' the loan -

 

It's a 'Managed Loan' whatever they call it -

[veester]

Totally.

 

I can make overpayments on my overdraft and credit card now; so i can just carry on as is with my own structured plan and pay it off quicker and with less overall interest.

 

Its going to be a tight (er than it has been) 6 to 9 months i think.

[johnnymitch]

Better than 6-9 years mate LOL!

 

Let's know how you get on please - it helps others to cope as well -

 

Best of Luck

john

[Castlebest]

Thats a very good illustration of the difference between normal financing even if the bank are upset with you and a managed loan.

 

6 to 9 months of hardship versus 5 years of hardship

 

pete

[hsbcfiddled]

Fair points you raise; i just spoke with HSBC to get a run down on what the "consolidation" loan entailed.

 

So, basically they said:

 

A) They take the Credit Card & Switch Card; provide a SOLO card on a basic account with no overdraft

 

B) 12.7% APR 'managed' loan for my total HSBC debt of £7080 (total repayable over 5 years of £9460)

 

C) I can make overpayments

 

D) No additional borrowing from HSBC during loan period.

 

Doesn't sound like all that good a deal to me tbh...just doing the basic maths.....

Consolidated loan = Managed loan = Massive interest = Never ending loan.

You would be better off struggling through if you can.

Whatever you decide, dont do a 'consolidation loan'

[ANDENA]

 

Consolidated loan = Managed loan = Massive interest = Never ending loan.

 

You would be better off struggling through if you can.

 

Whatever you decide, dont do a 'consolidation loan'

NDENA i agree dont touch managed loan as i had one,luck have got loan from direct line and paid off HSBC.See my thread.

[veester]

Quite interesting to read this clause:

28.1.2

We may base interest rates we apply to

money you borrow from us on our assessment of

your ability to meet your financial commitments

(which will include considering your credit

history and information held about you by credit

reference agencies) and how you conduct your

account. This would mean that the interest rate

we apply to money you borrow from us may be

different to the interest rate we apply to money

borrowed by other customers. We may do this to

ensure there is a fair allocation of the risks and the

costs of borrowing between different customers

 

Does this mean we should legally be able to request information on how they came to this decision? Or do you think as per usual they will hide behind "business confidentiallity" this opens the door for "post code lottery" and unfair risk attribution/abuse

[BankFodder]

I think that they would have to disclose their decision making process.

[Castlebest]

Knowing HSBC I think they will fight before disclosing anything

[pedross]

MBNA have been operating this system for years and I have never seen it succesfully challenged.

 

What it actually means is that we need new ways to earn excessive profits to make up for the ways that we used in the past and smart people like Caggers are stopping us from doing.

 

Therefore, we will check accounts and when people have consistently high balances which they are obviously not in a position to clear but are making the payments each month we will increase the interest rate much higher than we are offering new customers who we could not attract unless we offered them low rates.

 

When we have got them hooked we will do the same to them. We play this game with other credit suppliers and we call it 'Musical customers'.

 

Its a bit like musical chairs but we use people in need of credit as the contestants. Its fun really, we don't understand why the general public do not enjoy it like we do!

 

Pedross:)

[johnnymitch]

I like that Pedross - a classical description of their nefarious practices

[veester]

I have now recieved - with respect to my action against HSBC and Nationwide the following:

 

A) List of application for stay to be lifted before Designated Civil Judge on 18th March 2010 at 1030 am with a time estimate of half a day with case XXXXXXX

 

B) The parties are to file and serve not less than 3 days before the hearing writeen sumbmissions setting out their position in respect of these actions, given the terms of the judgement of the Supreme Court in the OFT Bank Charges Litigation

 

C) The parties will, at the hearing, be asked to state wht steps each has taken to compromise the claim.

 

Any advise?

[citizenB]

Is this a bank claim and is it above or below £5,000 ?

 

Have merged three threads on the same subject. Please stick to one thread x

[veester]

Sure thing will keep to 1.

 

Yes - Bank Claims and for under £5000

[comebackjimmy]

subbing

[caro]

Have both HSBC and Nationwide applied?

 

Which court is this?

 

What did their applications say?

 

Could you scan them, removing any identifying info and post them on here please.

[veester]

No - at the end of the OFT case i applied to the courts for instructions.

 

The courts then responded with the above.

[caro]

No - at the end of the OFT case i applied to the courts for instructions.

 

The courts then responded with the above.

 

What did you put in your application? Was it done on an N244 with a fee, or just a letter?

[veester]

just a letter - stating as the OFT case is over and the courts letter advising of the stay back in 2009 had stated that the defendant or I had to apply within 3 months of OFT case ruling for directions.