HSBC Managed Loans

[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.

[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.

[lateralus]

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