Help - Hubby asked to make an offer on a debt

SammyB_2

Hiya, I hope someone can help me as I am very confused. I went BR in May, one of my debts was a joint overdraft of about £2400. Obviously HSBC want my husand to pay. The account is frozen, they transferred about £400 over from a flexiloan on his account to make it under £2000 however charges have still been applied and it is about to go over the 2k mark again. He is unable to make any payments, when he tries he just gets told it is frozen. (He has attempted on a number of occassions)

Anyway, they have been in contact with him today. They say that they will send him a incomings and outgoings expenditure form and they want him to send it back to them within 4 weeks with an offer of payment. If this is unacceptable to them they will hand it over to debt collection.

I don't understand this because he has another loan with them and a small overdraft on his account. Surely this is a little over the top?

Has anyone had this happen to them? Do they want an offer of installments (He has already offered this) or an offer to settle?

Help!!!

Feelingfoolish_3

SammyB wrote: »

Hiya, I hope someone can help me as I am very confused. I went BR in May, one of my debts was a joint overdraft of about £2400. Obviously HSBC want my husand to pay. The account is frozen, they transferred about £400 over from a flexiloan on his account to make it under £2000 however charges have still been applied and it is about to go over the 2k mark again. He is unable to make any payments, when he tries he just gets told it is frozen. (He has attempted on a number of occassions)

Anyway, they have been in contact with him today. They say that they will send him a incomings and outgoings expenditure form and they want him to send it back to them within 4 weeks with an offer of payment. If this is unacceptable to them they will hand it over to debt collection.

I don't understand this because he has another loan with them and a small overdraft on his account. Surely this is a little over the top?

Has anyone had this happen to them? Do they want an offer of installments (He has already offered this) or an offer to settle?

Help!!!

HSBC collections department are rubbish! As your hubby seems to be getting no-where then I would suggest a letter of complaint with the threat of involving the ombudsman. He needs to explain that he wants to pay back the od but that no one seems to be listening! And I agree it is over the top but I am unsure of their procedure with frozen accounts. It may be that they want a regular repayment of the overdraft and then your hubby could make an offer but to supply them with his income and expenditure is out of order as it wasnt him who went bankrupt.
If it did go to their dca then they are more accomodating (metropolitan collections).

damoandclaire

SammyB wrote: »

Hiya, I hope someone can help me as I am very confused. I went BR in May, one of my debts was a joint overdraft of about £2400. Obviously HSBC want my husand to pay. The account is frozen, they transferred about £400 over from a flexiloan on his account to make it under £2000 however charges have still been applied and it is about to go over the 2k mark again. He is unable to make any payments, when he tries he just gets told it is frozen. (He has attempted on a number of occassions)

Anyway, they have been in contact with him today. They say that they will send him a incomings and outgoings expenditure form and they want him to send it back to them within 4 weeks with an offer of payment. If this is unacceptable to them they will hand it over to debt collection.

I don't understand this because he has another loan with them and a small overdraft on his account. Surely this is a little over the top?

Has anyone had this happen to them? Do they want an offer of installments (He has already offered this) or an offer to settle?

Help!!!

Hi there SammyB.

You said in your post that one of your debts was a joint overdraft? I take it this was between yourself and your hubby of which you speak? And just to understand, you went bankrupt, not him?

If that is the case, you would have both signed the agreement for the account and agreed to the terms of the overdraft. I'm sorry to say that if you went bankrupt and not him, then they are within their rights to ask him for the full balance as you are both joint and severly liable for the amount (I'm sure someone will correct me if I'm wrong or if there is another way around this but I did research this for a friend the other day and thats what I found out)

If you both went bankrupt, thats a whole different ball game and I beleive Feelingfoolish is spot on.

As for the paying it back, if he's attempting to pay it and theyre refusing payment (you say they tell him its forzen), then they don't have a leg to stand on and if it were to get that far, no court would entertain it. One of the rules of OFT is that they have to accept payments for debt they are chasing, regardless of how small the payment is.

SammyB_2

Yes, I am the one that went Br. We know he is liable, I am not disputing that - That is why he has been trying to sort it out!! It is driving him mad as he spends what seems like forever on the phone to get absolutly nowhere.

Is it legal for them to charge interest on the debt without giving the opportunity to pay it off??

Feelingfoolish_3

Hiya

Yes they can charge interest but if it went to court then you could challenge it, pre-action protocols indicate that they should be prepared to negotiate with the debtor and as your hubby has done this then he could challenge this. Not the point though as it shouldnt get this far.

Letter of complaint is his best course of action.