hsbc overdraft 29k on pre-final demand

millssy

hi

please can someone advise. i have 72 k worth of debt on credit cards and loans and have a six week old baby. i work freelance but have no work at present due to baby but my hub brings home 2.5k per mth after tax. i have followed advice from thissite and have made temporray arrangements with my mortgage payments on to interest only, deals with cards whilst on mat leave but i have a major problem with hsbc. a year ago we extendedour house and to do it asked hsbc for a remortgage / equity release for 45k. our mortgae balance is 168k and the house is valued at 345k so shouldn't have been a problem. They agreed to the loan and gave us an agreement in principle ove rthe phone and we went ahead and commenced building work whilst they sorted out the paperworK. I chased them up a few weeks later a sthe paperwork had not come through and they then agreed to extend our overdraft temporarily to 18 k with an on demand excess limit to pay the builders until the paperwork came through. This was inplace and we paid the builders and numerous other costs for fittings etc totalling in about 26k onoverdraft. They then came back three weekslater to say that the underwriters had unexpectedly done a spot check onour application and had refused it as Iam self employed and that we should reapply in in two months time. Which we did but it wasd refused again. Our account manager said not tow orry and that he wouldlook into it for us but he then left hsbc. We are now being chased to reply the full amount by hsbc collections and they have issued us with a pre-final demand. They offered us a managed loan at 16% interest but then said we couldn't afford the repayment of £672 per month (i agreed!) and that they thought we had a case to complain of being mismanaged and that they would send a memo to that effect to the complaints dept. In the meantime we have 20 days before the finaldemand is up. we can't remortgage with anyopne else as our credit score has been affected by all the [payments arrasngements we set up whilst on maternityleave.

Can anyone help - I am in total despair.

Bismarck

please don't despair.

your baby (and your husband) are the most important things right now....

the technical mob will be here soon with better informed advice than I can give but the first impression is that the 20 days deadline is pretty meaningless and just designed to scare you.

take care.

mummytofour

Bummmppp bummmp!

dotstar24

Bump!!!!!!!!!!!!!!!!!!!!!!

Debt_Free_Dreamer

I cannot give any legal/financial advise. But just wated to say, try not to worry and take care of your baby and yourself. These are the important things in live.

Someone should be along soon who knows far more about things like this.

Amanda :grouphug:

ldn-100

Morally speaking the bank should not have lent you that much money on an overdraft unless they were definitely going to follow through with the loan. You should find out the legal position by immediately going to your local Citizens Advice Bureau or by calling National Debtline.

I have accessed both these resources before regarding financial problems and have found them to be excellent and full of information.