HSBC Managed Loan

[Richhol]

Hi

 

I wonder can someone give me some advice. In 2006 HSBC gave me a Managed loan to consolidate 2 credit cards and an overdraft and I pay this monthly and have done since 2006.

 

I contacted them regarding the balance on this account as I had been paying this for 6 years and thought it may possibly be nearing completion.

 

To my shock I found out that I had not even paid 50% of the capital off and thought that I should have paid off a lot more than that.

 

I then asked for opening balance figures etc and on my calculations the loan balance should be around £3000 less than the figure they have quoted me. this is using the interest rate that they told me is used to calculate the loan.

 

They have told me that my last payment will be in 6 years time whereas using my calculations it should be 3 years time.

 

I am fairly sure I have calculated the interest correctly and can't see how I would be so far out

 

What should I do ?

 

Thanks

 

Rich

[rdm2006]

Ask them how it is calculated.

 

If i remember correctly - its a bit like a mortgage where the early payments are mostly interest with a very small amount of capital being paid off as the years go by the amount of capital being paid off increases.

 

Not like an ordinary loan where you pay a set amount of capital each month.

 

been there got stung myself............ if you can afford to pay extra each month then do it (if they will allow it)

[lucksic]

Hi Rich, Just noticed your thread re managed loan.

 

In your agreement it will tell you the length of your repayment, my sons was 8 years or 96 months it also tells you three periods when you can settle early and the amounts these are fixed.

 

Quarter term

Half term

Three quarter term

 

This is where you will find the relevant info for your particular loan.

 

Clearing the balance half term for example does reduce the interest charged and therefore saves you money.

 

Your repayments are part capital and part interest, and if you notice on statements they will take your payment and the next day interest is re applied.

 

My son got ppi back which will enable him to clear his half term and rid himself of this millstone of a debt.

[HSBCtrapped]

Hi Rich, Just noticed your thread re managed loan.

 

In your agreement it will tell you the length of your repayment, my sons was 8 years or 96 months it also tells you three periods when you can settle early and the amounts these are fixed.

 

Quarter term

Half term

Three quarter term

 

This is where you will find the relevant info for your particular loan.

 

Clearing the balance half term for example does reduce the interest charged and therefore saves you money.

 

Your repayments are part capital and part interest, and if you notice on statements they will take your payment and the next day interest is re applied.

 

My son got ppi back which will enable him to clear his half term and rid himself of this millstone of a debt.

 

I'm stuck with this managed loan too when I finish paying them they would have double what I was forced to borrow!! I don't understand how they get away with this at all

[Bandit127]

SAR to HSBC for Rich and Trapped then, to begin claiming back the charges and PPI contained in the accounts that were consolidated.

[HSBCtrapped]

Sadly I can't even remember what was put in to the loan

[Bandit127]

Sadly I can't even remember what was put in to the loan

As above. Submit a Subject Access Request. I read on another forum that this happened to you in 2007 so your time is running out to get that data back (they will only supply 6 years worth normally).

 

Get going... A credit card with PPI on it could get you a substantial reduction on your managed loan...

[lucksic]

Please see my other thread

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?371131-HSBC-complaint-lead-to-PPI-refund&p=4034999#post4034999

 

We had very scant info, most of the paperwork lost over the years, and basically wrote a complaint, not specific to ppi, but more about miselling banking products and services over the duration of his banking history. We were preparing to SAR if need be, and dig around in lofts for old paperwork. However, HSBC provided us with three ppi loan account numbers when they responded to tell us our complaint was being nvestigated, and we had to fill out ne Financial ombudsman forms, using the three numbers given, an offer was made and accepted gong back ten years, on four different products, which will enable my son to clear his managed loan and have some spare!

 

Don't give up hope, it's worth writing a letter or requesting SAR and following the lead of others on this forum.

[HSBCtrapped]

Thank you all for your help I just don't know where to turn really down about it and no idea who to turn to as I'm rubbish at this sort of thing. I was forced to take out a managed loan with HSBC on the 10/07/2007 due to a split with a violent ex and me taking on all the debt just to get out of it.

The loan amount was for £23.500.00 and 13.3% variable. Amount owing on 1/09/2012 is still £13.326.00. The loan is over 12 years so I have 7 more years of paying £316 a month. I can't see how this can be fair , they will have had over double what I owed from me by the end.

I really don't know what to do and find it all upsetting. Is this interest rate allowed. The interest I will have paid will be £22,000,63 I really can't see a light at the end of the tunnel so all your help really is great

[HSBCtrapped]

Hi who do i post the SAR to? any ideas

[lucksic]

postal information is in the sticky at the top of the HSBC forum

http://www.consumeractiongroup.co.uk/forum/showthread.php?74985-****HSBC-Contact-Information-****

[noddy997]

Thank you all for your help I just don't know where to turn really down about it and no idea who to turn to as I'm rubbish at this sort of thing. I was forced to take out a managed loan with HSBC on the 10/07/2007 due to a split with a violent ex and me taking on all the debt just to get out of it.

The loan amount was for £23.500.00 and 13.3% variable. Amount owing on 1/09/2012 is still £13.326.00. The loan is over 12 years so I have 7 more years of paying £316 a month. I can't see how this can be fair , they will have had over double what I owed from me by the end.

I really don't know what to do and find it all upsetting. Is this interest rate allowed. The interest I will have paid will be £22,000,63 I really can't see a light at the end of the tunnel so all your help really is great

 

Sounds like a mortgage! I hate them you pay nearly double if not double.

 

What I suggest you do is try finding out if you can pay it off early? And if so, and if your financial situation allows you to, try saving money on the side. I know £316 is a lot of money per month to give them and try to save something on the side as well will be too much but might be worth a shot. I mean if you can save £200 per month that will be £2400 per year (and pay that £2400 at the end of the year?). I know with mortgages you can pay upto 10% of the outstanding balance in any one year and anything above this will incur a charge. However this depends on t&c's and mortgage companies. Ask them can you pay anything extra (I mean you should be able to) but will there be a charge for this?

 

Alternatively if you can borrow £13326 off a relative and see if you can pay it off in one go, and then pay that person back £500 per month, that will take just over 2 years but that depends on trust and commitment (am not saying you wont pay them back, but people usually stick to banks and companies since there is no room for negotiation whereas with family and friends you would expect them to be more lenient).

[Bluebirdgsy]

Hi All,

Has anyone claimed PPI back on a managed load?

I am in the same boat as most I got this managed loan in 2003 as they said this was the best solutions when all ask was to extend my overdraft but approx £200 for 6 months as I was changing jobs and just moved into a new home and was told it will be paid in 5 years after the 5 years I called and asked why I was still paying to be told I will be paying for a while yet as I only make the minium payment and to clear this I would need to pay more every month, I explained I couldn't to be told well if will never be paid off as we will keep adding interest.

Would love to hear from anyone who has received a PPI payment back. I have sent a letter.

[Bandit127]

See post #3

 

My son got ppi back which will enable him to clear his half term and rid himself of this millstone of a debt.