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What should my son do? re HSBC and 1st Credit Ltd
purplecrocus
Posts: 43 Forumite
My son has received a letter from 1st Credit regarding an outstanding debt owed to HSBC.
This debt occurred about four years ago, he had an overdraft arrangement with HSBC, Unfortunately due to personal circumstances he lost his job and was unable to make payments. At the time he was living away from home, so until today I was unaware of this debt.
As this debt is likely to consist of a good proportion of bank charges he does not wish to repay the amount they are claiming is owed. Should he offer to pay a minimal amount to the credit company or is there away he can get this debt put on hold until he can find out how much has occurred through bank charges. I realise he would be unable to reclaim the charges, as he hasn't paid them yet, but would they be dropped if the courts agree they were unfair?
Hope this makes sense?
Thanks
This debt occurred about four years ago, he had an overdraft arrangement with HSBC, Unfortunately due to personal circumstances he lost his job and was unable to make payments. At the time he was living away from home, so until today I was unaware of this debt.
As this debt is likely to consist of a good proportion of bank charges he does not wish to repay the amount they are claiming is owed. Should he offer to pay a minimal amount to the credit company or is there away he can get this debt put on hold until he can find out how much has occurred through bank charges. I realise he would be unable to reclaim the charges, as he hasn't paid them yet, but would they be dropped if the courts agree they were unfair?
Hope this makes sense?
Thanks
0
Comments
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hi purplecrocus
i may be wrong but I don't think 1st credit would be aware of just how this debt came to be i.e. x amount of overdraft and y amount of charges. HSBC would have just told 1st credit, purplecrocusson owes £(amount) full stop. If your son really wants a full breakdown of the debt, he should try HSBC in the first instance
Be aware - although the original debt was passed to 1st credit by HSBC, there may be charges which 1st credit themselves have started to add on. Which makes it important to find out how much the original debt from HSBC was.
1st credit are unlikely yo "hold" their collection activities because you say the debt is in dispute (or everyone would do it).
All bank charges will NOT be automatically refunded even if the case against them wins - each person must make their own claim - so tell your son to do so!
Finally get some free advice from one of the debt charities.
good luck!
JJ0 -
Is he able to make a claim for the bank charges, although at the moment he hasn't actually paid them?0
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Yes, if and when they were refunded they would be credited to the a/c, thus reducing the overall debt0
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