Joint debt HSBC demand letter post BR

robotwars69 · 30 October 2017 at 12:00PM

Thanks GDB2222 - no, not quite the result I don't believe - if that forces my wife into an unnecessary default and that passed to the CRAs because of a cancelled agreement that didn't need to be - and therefore further action such as referring to collection agencies or court action becomes their right?

What we wanted was for my wife, who is not insolvent, to be able to continue her 100% responsibility of the loan without the black mark of defaulting - against her wishes and means to pay. Is this not the norm? If what you say happens, without my wife being screwed on her credit file, then yes, no problems, but correct me if I'm wrong - I don't believe that's the case.

robotwars69 · 21 November 2017 at 11:55PM

Just a quick update on this situation. The HSBC replied to 'my' complaint and simply confirmed that they ARE following protocol by closing the loan account and that my wife can set up a repayment agreement when the internal HSBC collections get in touch.

So I still stand strong on that this is wrong and against the contract that we have saying opportunity should be given etc, and that this will mean an undue default against my wife.

Lastly, despite all this (including a letter of direct debit cancellation) the money is still being collected from my wife's account as normal. My wife has not received any communication yet following the final demand.

So question is what now?

1. send a complaint in from my wife as well now with a view to taking their (probable) same reply to the Financial ombudsman - even then what can they do??

2. Meanwhile, if collections do get in touch, do we have to go along with a new repayment plan (making sure that the payments taken since the apparent closure of the account are accounted for!) - or have we a case to make them wait until the complaint is dealt with.

3. If this really does go to default, with all the black marks that go with it, and as I understand that the HSBC collections is actually an external entity, so the damage is done - do we get to barter with the collections?

Just a little confused as what to do next - currently though, the payment has just gone through, so we sort of have 30 days anyway to see what happens with the next one if Collections haven't been in touch by then.

Thanks again all.

debt_doctor · 22 November 2017 at 10:40PM

Hi,

I did say that creditors rarely refuse to take money despite what they may say!
I think you last paragraph contains what you should do. A payment (full contractual) has happened, and in a months time so will another one.
Provided no default is registered against your wife then she will be happy.
If collections call, your wife tells them she will continue to pay her contractual liability.
If they register at any time a default against your wife with the CRA's then make a complaint.
That is what I would do.
DD

joa1210 · 23 November 2017 at 1:11PM

we are having similar wth natwest over a joint account with £500 overdraft.
no correspondence to my husband only to me to say overdraft gone to bankruptcy, nothing to my husband yet they have closed his sole accounts as well, leaving him nowhere to pay to.
the joint account was his before we met as was the overdraft.
no one at natwest seens to have a clue whats going on!

GDB2222 · 23 November 2017 at 3:02PM

joa1210 wrote: »

we are having similar wth natwest over a joint account with £500 overdraft.
no correspondence to my husband only to me to say overdraft gone to bankruptcy, nothing to my husband yet they have closed his sole accounts as well, leaving him nowhere to pay to.
the joint account was his before we met as was the overdraft.
no one at natwest seens to have a clue whats going on!

Assuming your husband is the one not bankrupt, he should open a basic bank account with a different bank ASAP. Unfortunately, his credit rating is shot to ribbons by your bankruptcy.

robotwars69 · 13 December 2017 at 3:39PM

debt_doctor wrote: »

Hi,

I did say that creditors rarely refuse to take money despite what they may say!
I think you last paragraph contains what you should do. A payment (full contractual) has happened, and in a months time so will another one.
Provided no default is registered against your wife then she will be happy.
If collections call, your wife tells them she will continue to pay her contractual liability.
If they register at any time a default against your wife with the CRA's then make a complaint.
That is what I would do.
DD

So...in the end HSBC closed the loan account.
Latest letter (addressed separately to me as well, but hey ho):

(summarised)
Your account transfer to HSBC Repayment Services
Your account will now be managed by HSBC Repayment Services.
It is important that you call us to discuss repayment of the balance (***this is now 12,600 not 17k which was with interest by the way***).
Details of this debt have been registered with credit reference agencies which may affect your ability to obtain credit.
If we do not hear from you further collections activity may continue, including calls and letters.

So......

Because this has been passed to CRAs here I am ready to make a complaint (my wife, not me).
Complaint being everything I've written before about not being given the opportunity etc to continue the contractual obligation.
So if the complaint is taken seriously by HSBC (and if not, the FO), what is likely to happen - the CRA stuff overturned?
Or do you reckon she'd lumped with this default stain now?

and...

Last question - what does she do in the meantime - deal with HSBC repayment services and set up effectively a continuation of the same monthly repayment?

The letter states there are a range of options to suit all circumstances - I'd like to be a bit more clued up before plunging into resolving this.

Thanks again for all your help!

robotwars69 · 20 December 2017 at 4:32PM

Another quick update - I've sent a complaint in (or my wife has rather), and also sent a letter to HSBC Repayments Services to hold fire for 30 days or whilst the complaint is being dealt with.

Meanwhile, through chatting online, my wife asked for a statement and has also received a letter confirming that the loan account has been paid off in full (not by us obviously!)... dated a few days after the 'transferred to HSBC Repayment Services' letter.

I've no idea how HSBC works, if this has been paid off in full, a) how does that go to the CRAs...and b) if it doesn't any longer exist how can HSBC repayments claim for anything - I understood that despite HSBC in the name, that this was effectively an external debt collection agency? I'll wait and see what happens with the complaints letter but still bamboozle by the whole shambles of communication! One thinks that someone somewhere must know what's actually happening, but I'm not sure they do?!

joa1210 · 22 December 2017 at 12:55PM

our overdraft has gone straight to wescott!!!
its ridiculous he pays (paid) in £400 per week and they have given him no opportunity to even discuss the account just sold it on
good luck with your complaint, interested to hear how it goes

robotwars69 · 18 September 2018 at 11:11PM

An update to this situation...and because I have relied on all the amazing info and advice on this forum, I wanted to update this thread in case anyone else is going through the same ridiculous situation with HSBC!

As a by-the-way, my AD is due in just 1hr, hence my head is in BR mode

The other good news, apart from my upcoming discharge, is that we sent a complaint to the Financial Ombudsman. The outcome: The FO had listened to all the phone calls and agreed in our favour that HSBC had been unreasonable, miscommunicated many times, and hadn't provided my wife with the opportunity to resolve despite her (our) efforts. HSBC apologise with a small compensation amount, and, as requested in our outcome request, will clear the default on my wife's records with the CRAs and arrange a repayment plan in due course. They haven't been in touch yet regarding sorting out a repayment, so they can take as long as they want with that for now... but my wife did receive the £150 compensation already.

I have to say the whole HSBC ordeal was totally draining and compiling the info for the FO was a strain too to get everything detailed and correct. My advice though, if you're in something as crazy as this, dig your heels in - because even my complaint to the HSBC (investigated internally) was returned with a "nope sorry, we stand by everything" attitude - which I'm sure didn't take the FO long to see how ridiculous that was whilst reviewing our phone calls!

Thanks everyone who contributed to this thread.

As a final question though, if there's anyone with advice if there's anything we can do to make the repayments work the best for us, please let me know. At this point, we haven't spoken to the HSBC but it is not clear in my head if we are likely to be expected to pay the old 'with interest' loan amount as per original agreement (£17k) or the new £12k amount which is how it sat when they pulled it (without the 60 months of interest). Can they add the interest with the new agreement or are they stuck with having to agree a non-interest payment plan on that base amount?

Thanks again

Joint debt HSBC demand letter post BR

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