hsbc managed loan

[wilko011178]

With regards to my managed loan - taken out a LONG time ago... was to consolidate debts back in 2004..

 

. 138 repayments (11.5 years) at £140 per month.

 

1st payment was 1 nov 2004 so todays payment is exactly 9 years of payments.

 

That must mean 30 payments (2.5 years) to go at £140 per month which is £4,200..

 

Im slightly confused as to why my last statement shows my balance (as of 26 sept 2013) as being £2,676.20..

 

. does that mean my loans going to be significanly less that the full term??

 

Is the balance less cos of the low interest rates being applied for the last few years??

[filrobbo]

How much was the loan and you say it was to pay off debts

Edited November 1, 2013 by filrobbo

[citizenB]

Was there any Payment Protection insurance on this loan ?

 

 

Do you have a copy of the agreement?

[wilko011178]

Loan was for 10,770 to pay off existing hsbc debts. from memory i had repayments of 300+ a month which i was seriously struggling with. they basically told me the only thing they could do to bring the monthly payments down was to offer the managed loan. this also cleared existing lian plus a flexi loan account which was basically a £1000 overdraft. yes i have a copy of the agreement. apparently theres no ppi on it tho as ive asked this already. Previous loans with hsbc did do tho and i got back just short of 2000 back a couple of years ago from them

[filrobbo]

Is there any unlawful charges added on to any of the debts you can claim back to reduce the debts

[wilko011178]

No, the only thing that gets charged to the managed loan is the monthly interest. my balance is around £2500 at the moment with interest of around £16 a month, this interest naturally decreases every month as the balance goes down and down. my question wasnt really about charges or anything... i was just wanting clarification that the full 138 monthly payments wouldnt be applicable as the balance should reach zero way before the full term....

[ims21]

If the loan was a variable rate loan then the answer could well be to do with the rates.

 

If you took out the loan with a higher rate than it is now and over time the rate has decreased and yet you still continued to pay the initial instalment amount then the loan will finish early.

[wilko011178]

Thanks ims21 - yes thats exactly what it was. good job the bank of england base rate has been 0.5% for years... thats saved me around £1,700 by a rough calculation

[filrobbo]

OK sorry just trying to find a way to reduce your debts or get some money back you have paid out, I mean the other debts not the loan.

[sequenci]

Most loans calculate the interest as you go along. The balance may well be the amount you would have to pay if you cleared it in full today whereas the amount of instalments multiplied by the months you have left would reflect the full amount including interest which has yet to accrue.

[wilko011178]

Ive been thinking - i got ppi refund for my previous loans in dec last year. surely that means when i consolidated everything the ppi was part of all that... soooo i shouldnt have had to "borrow" £10,770 in the first place as some of that was ppi related. surely the managed loan requires some recalculating?? Im basically paying back some ppi and the interest on it as well??

[citizenB]

Not quite sure what you are asking - if these were loans that were consolidated into new loans then you should have received rebates for the previous loans. Indeed if PPI was sold incorrectly on one loan then it would have been sold incorrectly on all of them.

 

The only way you are going to work this out is to obtain statements going back to the first loan and then completing a spread sheet.

 

You can do this by making a Subject Access request (SAR)