HSBC Managed Loans

[lou7603]

Hi,

 

Could anyone shed some light on these rip off loans for me please? I had to change my personal loan over to one of these as I fell a couple of months behind on the repayments after I lost my business. I have been paying £216.00 a month for the last 17 months on a 15k loan. I went to pay it off yesterday only to find out that I still owe them £14500, and that out of the repayment per month £143.00 of it has been interest!!!!!!! How can this be??????? Can anyone help??

 

Thanks

 

Lou:confused:

[lateralus]

i'm not a fan of these loans in fact - even reading the words managed loan brings on a red mist - i'll post a couple of threads but to be truthful - i can't read them anymore as i get so upset i just can't read them at all.

hsbc have a lot to answer for.

 

but in answer to your question - i don't know where i read it - but i did read an explanation on this forum about the managed loans and it seems that they are set up in the same way as a mortgage - in that in the early days of the loan you are paying almost all interest and very little against the principle of the loan and as time goes by it equals out (again just like a repayment mortgage does) to where by the last few months you will be paying only a small amount of interest and a much bigger portion of the loan itself. i hope that answers your question. it doesn't make it any better - but at least you have an understanding of it. i don't think for one minute that people understand what they are signing up for when they take them on - it is - by what i've read - presented to you as your one and only hope of salvation - with little option but to sign up for it.

now, if you are a real glutton for punishment - take a look at a few of these stories:

Who has had Managed Loans? (1 2 3 4 5 ... Last Page)

 

managed loan, hsbc, 66% interest now i see that this is the one where roosterrs explains the idea i tried to explain above.

 

hsbc managed loan charges

and many, many more - just put managed loans in the blue strip line above - that starts on the left with user cp.... move across to search - put it in and click and it comes up with 30 of the most recent references to m.l.

 

and my personal favourite for all time stinker award to hsbc: read post number 24 on this thread: Husband v HSBC - Paid

it beggars belief!

 

which brings me to one happy story - that was someone replying on Tigs33's thread "husband v hsbc - paid". actually tigs33 is the only claim i know of where the managed loan was tied into the reclaiming of bank charges and you know what - the whole loan was repaid!!!!!!! so, read that thread and see if it could work for you.

a lot of peeps are talking about trying to get something back (like the interest - if you can show that it was the unlawful charges which made you overdrawn and needing to take out this gruesome loan in the first place) so, read up - good luck. we will help if we can.

[HSBCrusher]

Nice reply Latty as usual.

 

If the loan is made up of charges, then you might just well get all that interest back!

 

As latty says, read up, keep us posted!

[lou7603]

Thank you lateralus! It certainly made for some interesting reading last night. What I still don't understand is how the papers that I signed said that I would be paying 12% interest when I have obviously been paying more. I'm going to go into the branch tomorrow and demand some answers. Also I don't see how I can claim any of it back? Any ideas greatly recieved! Am in the process of claiming bank charges back at the moment and just want to be able to not have to deal with HSBC at all anymore!!!!

[hsbcfiddled]

Hi Lou,

 

I think we might be in a similar situation.

 

Although I may be ahead of you in the claiming back the charges process.

I have to give HSBC two more days before I can send my LBA.

 

Have a read of this below, and let me know what you think please?

 

 

 

 

 

Re: Who has had Managed Loans?

What I want to know is. How can we challenge these managed loans?

 

I can see from my statements that for at least six months prior to going on the Managed loan (should be called UNmanaged Loan) I had only once or twice strayed into O/D (even then it would have been covered by the unfair charges that had been placed on my account) so for whose benefit is the Managed Loan?

Certainly not mine?

If I could afford the two loans, as I was, why did I need the higher interest managed loan?

 

In the 26 months prior to the Managed loan I had been charged £700.

In the 14 months after starting the Managed Loan I was Charged £4000.

 

I think ive answered my last question.

[lateralus]

lou, in answer to your question - take a look at an exchange i had with bong a few months ago (she is one very clever lady)

i wrote this:

Re: Bong v HSBC *Contractual Interest & 13yr claim*

bong dear, mother lat. here. boy, did i have to go back aways to find this thread - not a peep since last fri!

anyway, i digress, on petey boy's thread (hurrah for the offer) you said this: "have you considered reclaiming the interest on the managed loan? If it was money borrowed to repay unlawful bank charges then you would be entitled to the interest back on that part of the loan. Another claim maybe?"

now, dear, talk me through this nice and slowly. son has a managed loan brought on by going continually over his overdraft and the good people at hsbc talked him into this solution. (i didn't know any of this until we started talking about the reclaiming on the current acct - still not told me much - but i'd like to talk to him with some confidence) are you saying that the whole interest on the m.l. is recoverable? what if, i'm guessing here, they said "oh, take out a loan for xxxxx amount as that will cover your overdraft plus a little extra for yourself". then would it still be recoverable (if it is), also, what if you are only part way through paying it off, is it recoverable for the interest paid to date - what about the remainder? remember you are talking to an almost oap, technophobe who has never been overdrawn (don't take that wrong - i bleed for all of you who have fallen into the traps - "there but for the grace of god....etc") anywho, post away and inform me - you know i trust you implicitely! thankx in advance.

 

and go here to find the answer and our exchange which may clear up your question.............Bong v HSBC *Contractual Interest & 13yr claim**WON!!!** (1 2 3 4 5 ... Last Page) page 6 posts 100 - about 106.

see if that clears it up.

[lou7603]

Hi Lou,

 

I think we might be in a similar situation.

 

Although I may be ahead of you in the claiming back the charges process.

I have to give HSBC two more days before I can send my LBA.

 

Have a read of this below, and let me know what you think please?

 

 

 

 

 

Re: Who has had Managed Loans?

What I want to know is. How can we challenge these managed loans?

 

I can see from my statements that for at least six months prior to going on the Managed loan (should be called UNmanaged Loan) I had only once or twice strayed into O/D (even then it would have been covered by the unfair charges that had been placed on my account) so for whose benefit is the Managed Loan?

Certainly not mine?

If I could afford the two loans, as I was, why did I need the higher interest managed loan?

 

In the 26 months prior to the Managed loan I had been charged £700.

In the 14 months after starting the Managed Loan I was Charged £4000.

 

I think ive answered my last question.

Hi,

 

I was forced to take out my loan to refinance a personal loan from HSBC that was from my husbands Uni overdraft and student loans etc plus a credit card of my own about 3 years ago- I was paying 7.3% on that loan and am now paying (supposedly) 12%. These loans are a nightmare as they will not allow you under any circumstance to pay a lower amount- for example I was off work for 4 weeks with laryngitis and wasn't paid for it- called HSBC to see if I could pay a lower amount for that month as I was the best part of £1200 down on my wages. They refused point blank- took their £216.00 and then returned other direct debits due to insufficient funds!!!!!!!!!!!!!!!!! The bank wins every time. I'm glad that people are fighting back. I can't even work out the percentage of interest that I am paying as I don't hve a clue how they calculate it. All I know is that in 18 months or so I have supposedly only paid off £500 when in reality I have paid approximately £3888???????????????????????????? They are no better than loan sharks that come to your door. I wouldn't mind but I'm not exactly high risk- we own our own home, both work full time and bring in good money- yet we are treated like untrustworthy idiots. I am absolutely going to fight them over this as I am sick of going out to work to pay people like them!! RRRAAAHHHHHHH!

 

Sorry- rant over!

 

Can't get into the branch until Friday so will let you all know how I get on

 

Lou

[lateralus]

did reading the things bong wrote help you see the idea behind claiming for the ml interest?

[hsbcfiddled]

I Know where you are coming from.

 

Ive been paying for 3 years and paid over £10k against £16.6k and i still owe £13k

 

meanwhile over first 14 months of MANAGED LOAN they have charged me over £4000 in unlawful charges that i am going to claim back and hopefully bite their gonads off (sorry).

 

Les

[lou7603]

did reading the things bong wrote help you see the idea behind claiming for the ml interest?

 

 

I may be being a bit dim but I'm not sure what they claimed for......:idea:

Did they get all the interest back as thats what I'm thinking of trying to do and why did they get the whole thing paid back?

 

V. confused!!

[lou7603]

I Know where you are coming from.

 

Ive been paying for 3 years and paid over £10k against £16.6k and i still owe £13k

 

meanwhile over first 14 months of MANAGED LOAN they have charged me over £4000 in unlawful charges that i am going to claim back and hopefully bite their gonads off (sorry).

 

Les

What gets me is they are winning at every turn. Will be at HSBCS door tomorrow morning waiting for them to open!!!!!!!

[hsbcfiddled]

Re: hsbcfiddled V HSBC help please

UPDATE.....

 

Received nice letter from Uncle Colin today- he is investigating my bank charges- I bet he is. well, while he is investigating, he can investigate the wisdom of placing me on a Managed Loan.

 

He is going to contact me when hes finished. Good! but the LBA goes out today - times up.

[hsbcfiddled]

Good Luck at the Bank tomorrow..give em hell.

[lou7603]

Good Luck at the Bank tomorrow..give em hell.

 

 

I will also be handing them 2 LBA's as well. They are going to love me!

[lou7603]

Well, couldn't go to the branch this morning as the kids are still off school ( didn't think it would be wise for my 3 and 5 year olds to see mummy going purple in the face and screaming at the nice bank man!) so I called the credit department. I have had a splitting headache ever since. The extremely (!) nice man on the end of the phone told me that I had signed for the loan therefore I signed the terms and conditions. I told him that I had signed up for 12.25% interest and expected to pay 12.25% not the almost 60% that I am currently paying per month. He assured ( ) me that I am not paying 60% and that the more of the loan that I pay off the lower the interest payment will be. However, if I pay the loan off early there will be no rebate of the interest that I have paid:mad: . So HSBC are expecting me to continue paying £216 for the next 8.5 yearson this loan. This means that I will actually be paying them £25920.00 for a £15k loan. Hmmm, let me just ponder on that one for a minute..........

Nope I don't think so........

I asked how HSBC thought they were any better that loan sharks to which I got the same answer " you signed the paperwork"

I may have signed the paperwork, but it was under duress as HSBC told me it was that or bankruptcy. They even gave me the business card of an insolvancy practitioner!!! When I took this loan out to get rid of the joint one I was made to put it in my name only. I was also unemployed.I lost my business in the October ( hsbc knew this as I had a business account with them) took this loan in the Jan and didn't start work until the March. They never allow you to lower the payment if you get into difficulty and then charge you if there is not then enough money to cover your other bills in your account. I have now transfered the money from my remortgage from my HSBC account and I will not be clearing this managed loan as yet, as I have put a complaint in with the ombudsman about the way HSBC put these loans across. They have told me that its a bit like a mortgage- uh, no- it's a personal loan that is linked to your bank account that allows the bank carte blanche over you and also allows them to treat you like a 14 year old only allowing you to have a solo (rraahhhh) card and then to speak to you as if you are an idiot. NO MORE. I will go to court over this if I have to...............

[hsbcfiddled]

Sounds like you got to speak to 'Mark Benton' who star's in City Lights on ITV and the TV advert for 'Nationwide Building Society' being the awkward Bank Manager (although very true of most bank managers-it seems).

 

Soon as i get a reply from Uncle Colin re; my managed loan i will inform you of its contents although i expect it will be blah blah blah.

 

I am also waiting for assistance from Citizens advice.

 

Keep you posted.

 

Les

[lisaf]

Hi all,

I'll follow this thread with interest if I may. I've been dying to get something done about my Ml also (paying 254 per month for 11 years for a £19k loan)! Oh and £180 of that is the interest! Good luck to you all!

Lisa x

[lou7603]

Have conceded defeat (for the moment) and paid the thing off. But will be going after them for the interest once I have sorted my bank charges out!

[Audreygreeneyes]

I have a ML with HSBC, which has onyl about 2-3 payments left.........opnce I havebeen paid my charges refund, am seriously thinking of going after them for this..........

[hsbcfiddled]

Hi lisaf & Lou,

 

Have a look at this.

 

hsbc fiddled, i too have been conned into accepting a managed loan (after my inital request for financial help was met with 'im sorry, theres nothing we can do'). As soon as they realised i was desperate they signed me up for a £10k managed loan and ive been regretting it ever since.

 

Anyway, the point of my story is, if they cannot supply you with a copy of the original agreement then they cannot enforce the debt in court. Im currently pursuing this route, and have received letters placing 2 accounts on hold while they search for the agreements. Just a suggestion, as i have no idea what my ML was comprised of, i was only 18 at the time.

 

Check it out: Loan Company Cannot Supply The Original Agreement

 

 

 

You can read more on my thread:

 

hsbcfiddled V HSBC help please

 

Good Luck

hsbcfiddled

Click on the scales if i have been of help please.

Les

[Audreygreeneyes]

Funnily enough I vcalled HSBC yesterday and asked them 2 questions ( am sure you can guess what oen was!) the response was " why do you want this information!!! instantly thought uhu strange question.......... as it happens i cannot find the original copy (5 years old) so let me repaet what is your reason for asking for a copy of this agreement!! I was aske dhtis 3 times and the call was recorded............

 

is this healthy paranoia????..... lets see if it arrives........

[hsbcfiddled]

I requested mine at my local branch. It was not a problem.

Depends on the staff...afterall some of them are just like us...