HELP with HSBC

warren100uk_2

Hi, guys,

Not sure if this is the right place to post this but i need help.

To cut along story short, my girlfriend lost her job 2 years ago, as her company went bust, so she last a whole months wages. We went £1900 overdrawn with HSBC, things got worse and 2 other account went overdrawn as we tried to make ends meet.

In the end HSBC were charging £150 fees on each account but still paying the DD's. We just let them as the bills were being payed. We ended up best part of £5000 overdrawn in total on all 3 accounts.

We decided to move our wages into another bank, so we could try and sort it. We paid off £3000, which we got from Family help, then have been paying £30 into each account, each month.

Today i got a final demand letter, for one of the accounts, we have tried to talk to them and have been messed around, like the said they would call us and never did.

This amount is £890 but we own £1900 in total, i spoke to them tonight and gave in all our outgoings, and even thought i paid them a total of £90 each month for the 3 accounts, they say they can not help, and all we can do is do an IVA.

We are just keeping our heads above water, and not gone behind on another bills, such as mortgage etc but really struggling to afford to buy food, but to us the bills are the most important thing.

They say that if i dont sort it with 7 days, they will take us to court, over £1900 and get the debt collectors in.

We dont want to do an IVA, can they make us over £1900? and do you think they will take us to court, even though we are paying money into the accounts and not using them?

Any help would be great as they have done a great job of scaring us.

Thanks

Mark and Jo

mistercovert

You need debts of at least £10,000-15000 for an IVA. A £1900 debt is small fry, could you not make an arrangement with the bank to pay the debt over several months. Do you have a property that they could put a charge on? Turn it into a secured loan on the property? Do you have any other debts?

Rob H

Deep_In_Debt

Hi
As far as I'm aware you can't be made to go into an IVA for debts of less than 15k, so I think you have no worries on that score. However, i think you can be made BR for debts of £750 or more but I think they are unlikely to do this as it will cost them more than you owe to do this. I'm sure someone will correct me if I am wrong.

Keep paying them what you can afford. If it does go to court, hopefully the judge will look favourably on you as you are trying to pay to debt off and set the payments at what you are paying now or less.

Don't speak to them on the phone but keep everything in writing.

Above all, don't panic. They are trying to scare you. Don't let them.

Good luck.

warren100uk_2

Hi, we have alot of debt, we already have a secured loan on the house, and debt over £15k, we are managing everthing else, and not gone behind on anything, i really dont want to drag everyone else in because of £1900. We have been paying them £30 on each account,£90 in total, they never agreed that but thats all we can afford, and they will not come to any other arrangement, only that we speak to Payplan i think they said.

Thanks

Useless_with_wonga

Firstly try not to panic. The banks and CC companies are great are scaring the s**t out of people. They will bang their drums jump up and down and scream a lot because they just want you to pay up. However you can't give them what you don't have.
So the way to go here as i see it is to approach one of the debt charities for advice and guidance. They can negotiate with HSBC on your behalf or for that matter you could try to do it yourself if you felt up to it. You need to make them aware of your circumstances and then pay what you can toward the debt even if it is only a token gesture of £1 per account.
Have a look on the National Debt LIne web page there are template letters on there that you can send to HSBC basically saying "I'm struggling heres a quid for now I'm trying to sort this out with Payplan/CCCS/National Debt Line in order to get you paid."
This will buy you time to do just that.
Court etc is a long way off from where you are now. Door step collectors are nowt to be worried about they have no powers at all and can only ask you to pay they can't enter your house clamp your car or take your stuff. You can shut the door on them and they can't do a thing about it.
As i say calm down try not to worry and get in touch with Payplan or CCCS.

warren100uk_2

Thanks, they said that because we only have £50 spare and we have alot of debt that we cant guarantee the money each month. I dont understand why they would want us to do an IVA as they would loose out wouldnt they?

Cheers

Deep_In_Debt

Keep paying them what you can afford - even if they don't like it. Creditors probably would lose out through an IVA. From what I have read on hear, HSBC are not the easiest to deal with (I dont have any dealings with them so can't confirm).

Don't let them threaten you and as others have said, and deal with them in writing only. They will throw their toys out of their prams but there is not much they can do if you are trying to pay.

Honestly, don't let them scare you - that's exactly what they want.

warren100uk_2

Thanks for your support guys.

Mark and Jo

Useless_with_wonga

If you only have £50 spare is that after payments to the other creditors? I assume that it is. If you don't have any assets to protect mainly a house then an IVA may and i say may not be the answer.
Depends on your circumstances really if you have over 15K with numerous creditors then an IVA might and again i restate might be an option you should explore.
You need to get this sorted out for your own sanity and health. No point in worrying yourself to death over it.
It may be that a Debt Managment Plan with one of the debt charities will ease the pressure for you and actualy allow you money to live a reasonable lifestyle until such time as you get your debt paid off.
Whichever way you go it won't be an easy ride but at least you are facing up to it which is commendable.
I really really would get some advice from the debt charities don't be embarassed nor too proud they have heard it all before and worse....... It is important that you are totally honest with them and they can then help you get this sorted.
It's hard to be specific with advice without knowing your full circumstances but whatever they are they can be resolved one way or another.

warren100uk_2

Thanks, yes £50 is whats left after everyone else is paid, and we are managing them and have not gone behind on any of them