Can some just clarify this for me please? Account in dispute...

mrniceguy1985

Hi guys,

I'm hoping that someone will be able to clarify something for me....
I set the ball rolling to claim back over £450 worth of charges from HSBC just before the test case came in. They therefore promptly put it on hold, so I waited. Until recently to my delight :mad:, HSBC decided to give the amount owed to a debt collectors. I knew I had read something on the forum that stated that whilst the account was in dispute, HSBC were not allowed to demand payment from me or send it off to a 3rd party i.e. debt collectors whilst the account is in dispute - I've found this from the Administration of Justic act 1970 from a post on the forum - can I use this to argue that the account stay on hold until this test case is sorted and call off the bank's dogs??


Under the terms of the Administration of Justice Act 1970, when a debtor has reasonable grounds to put an account into dispute, a creditor must freeze all action on the account until such time that the dispute is resolved. This includes but is not limited to :
• You may not demand any payment on the account, nor am I obliged to offer any to you.
• You may not add any further charges to the account.
• You may not add any interest to the account. You are not permitted to profit from an account in dispute.
• You may not pass the account on to any third party.
• You may not register any information with the credit reference agencies.
• You may not close the account.

Thanks guys...if anyone can help; I would be most grateful.

natweststaffmember

mrniceguy1985 wrote: »

Hi guys,

I'm hoping that someone will be able to clarify something for me....
I set the ball rolling to claim back over £450 worth of charges from HSBC just before the test case came in. They therefore promptly put it on hold, so I waited. Until recently to my delight :mad:, HSBC decided to give the amount owed to a debt collectors. I knew I had read something on the forum that stated that whilst the account was in dispute, HSBC were not allowed to demand payment from me or send it off to a 3rd party i.e. debt collectors whilst the account is in dispute - I've found this from the Administration of Justic act 1970 from a post on the forum - can I use this to argue that the account stay on hold until this test case is sorted and call off the bank's dogs??


Under the terms of the Administration of Justice Act 1970, when a debtor has reasonable grounds to put an account into dispute, a creditor must freeze all action on the account until such time that the dispute is resolved. This includes but is not limited to :
• You may not demand any payment on the account, nor am I obliged to offer any to you.
• You may not add any further charges to the account.
• You may not add any interest to the account. You are not permitted to profit from an account in dispute.
• You may not pass the account on to any third party.
• You may not register any information with the credit reference agencies.
• You may not close the account.

Thanks guys...if anyone can help; I would be most grateful.

Is the whole of the amount wholly made up of bank charges?
Have you got acknowledgement from the bank of your claim to them?
Are you in fiancancial hardship?

mrniceguy1985

natweststaffmember wrote: »

Is the whole of the amount wholly made up of bank charges?
Have you got acknowledgement from the bank of your claim to them?
Are you in fiancancial hardship?

Thanks for getting back to me natweststaffmember....
My original overdraft was £100 which I paid to the debt collectors - so the amount outstanding (£356.10) is all bank charges. I received the standard letter when the test case came in stating that my claim had been put on hold and Yes i'm in financial hardship as I'm paying of all my other debts in instalments; leaving me struggling to pay some bills and even get to work.

natweststaffmember

mrniceguy1985 wrote: »

Thanks for getting back to me natweststaffmember....
My original overdraft was £100 which I paid to the debt collectors - so the amount outstanding (£356.10) is all bank charges. I received the standard letter when the test case came in stating that my claim had been put on hold and Yes i'm in financial hardship as I'm paying of all my other debts in instalments; leaving me struggling to pay some bills and even get to work.

The bank is who you need to deal with on this one. Write back to the bank with any reference number you have for your original complaint and ask them to re look at you case as a hardship case.

mrniceguy1985

natweststaffmember wrote: »

The bank is who you need to deal with on this one. Write back to the bank with any reference number you have for your original complaint and ask them to re look at you case as a hardship case.

The debt collectors have hold of it at the moment though...I'm not sure how to get them to pass it back to HSBC?