Letter from HSBC about Personal Loan....

Sammy3008

Ok, my DH has been paying into a DMP for the last 5/6 months, for his outstanding loans.
We have been looking into BR, however we were hoping to wait a couple of mths to save up the fees etc, but now I'm worried about this letter from HSBC DH has received...

This is what it says:
'I have been unable to pay the £201.59 instalment on your personal loan today, as we were not prepared to agree to any further informal overdraft requests on your current account' No idea what this meant!?
'Your current account is £2550.34 overdrawn. I am therefore obliged to send you the enclosed default notice in respect of your personal loan.

The default notice:
' Details of Default; Term breached: the term or terms of the agreement form requiring you to make payments.
Nature of breach: Failure to make payments as required under the agreement'

Action required:
On or before the 3 sept 09 you are required to take the following action to remedy this breach.
'To pay the arrears of £1,052.94'

If you do not take the action required by this notice before the date shown then the further action below may be taken against you.

FURTHER ACTION:
Recovery of all moneys outstanding under this loan agreement.

Amount owing including interest and charges up to 23 August 2009 £11,349.93
Less rebate due to you: £1,666.30
Total amount to be repaid: £11,683.63.

They have also sent out a proposal form, which asks for details on:
Money owed (Finance provider etc)
Assets
Monthly Income
Monthly outgoings

So what are HSBC looking to do?

Sorry for the long post, but thought it best to put everything down that the letter states.

Thanks.

Cash_Flow

Sammy3008 wrote: »

Ok, my DH has been paying into a DMP for the last 5/6 months, for his outstanding loans.
We have been looking into BR, however we were hoping to wait a couple of mths to save up the fees etc, but now I'm worried about this letter from HSBC DH has received...

This is what it says:
'I have been unable to pay the £201.59 instalment on your personal loan today, as we were not prepared to agree to any further informal overdraft requests on your current account' No idea what this meant!?
'Your current account is £2550.34 overdrawn. I am therefore obliged to send you the enclosed default notice in respect of your personal loan.

The default notice:
' Details of Default; Term breached: the term or terms of the agreement form requiring you to make payments.
Nature of breach: Failure to make payments as required under the agreement'

Action required:
On or before the 3 sept 09 you are required to take the following action to remedy this breach.
'To pay the arrears of £1,052.94'

If you do not take the action required by this notice before the date shown then the further action below may be taken against you.

FURTHER ACTION:
Recovery of all moneys outstanding under this loan agreement.

Amount owing including interest and charges up to 23 August 2009 £11,349.93
Less rebate due to you: £1,666.30
Total amount to be repaid: £11,683.63.

They have also sent out a proposal form, which asks for details on:
Money owed (Finance provider etc)
Assets
Monthly Income
Monthly outgoings

So what are HSBC looking to do?

Sorry for the long post, but thought it best to put everything down that the letter states.

Thanks.

I hope you sorted this mess out?

thriftymomma

I would say they are trying to work out the full picture so they can decide whether to chase the debt themselves or if it is not viable, to sell the debt on to a debt collector.