HSBC Won't Allow A Repayment Plan - What Can I Do?

missb1981

This is my first post so hope I am in the right place

I have been experienced difficulties with HSBC which have got completely out of control.

I have an overdraft with HSBC for the amount of £1500 unfortunately I kept going over this and getting enormous charges. Eventually I felt I had no option but to switch banks and then to repay the overdraft.

HSBC then started calling me and instead of negotiating any payment plan they just kept demanding the money and asking me to pay £2000 which I don't have. I asked them if they would add the overdraft to my HSBC loan which I had never missed a payment on and was advised that they couldn't do this as I was up to date on my payments and the only way they could do this would be if I missed 2 payments on my loan which I thought was absolutely ludicrous and I didn't want to defer on my payments of the loan so continued to pay it.

On the next call I was asked how much I could afford to pay each month and I advised them that I could pay £50 per month and I was told that they couldn't accept this and I asked how much would I have to pay each month and was told £240 per month which reluctantly I agreed to but was then told that they couldn't do this now as I did not have any spare income to cover this. I had advised them that I had taken up additional work and also that my husband gives me half of the mortgage payment so I could cover the payment but they still refused to put a plan in place.

I then popped into branch and was told that they couldn't do payment plans in branch which was a surprise as the letter I had received from them advised me that I could go in to branch to discuss this.

I then called HSBC again and was told that I couldn't do a payment plan as I hadn't had any activity on the account in 6 months.

It seems that HSBC clearly do not know what they are doing as I receive different information each time and the end result always seems to be that I have to pay the £2000 in one sum rather than a payment plan.

I feel that I have done everything possible to get this matter rectified but HSBC will not accept anything.

I have now started to pay them £100 a month which is what I can afford however I then received a letter saying that this was not acceptable.

On Saturday I received a letter saying unless I pay £2074.89 within 18 days action will be taken against me which could include Debt Collectors, Solicitors or Court Action so I am obviously really worried about this but cannot see what I can do as I do not have the full amount to pay in one go but can commit to a payment plan.

Any assistance would be so appreciated as I just do not know what to do!!

Triggles

I'd just be tempted to pay what you can afford each month, and leave it at that. They can badger you all they like, but if you are paying in, they won't refuse the money.

Tixy

Hi

You seem to have spoken to HSBC a lot but have you actually written to them to setting out a repayment plan that is affordable to you and enclosing an income & expenditure account to show that what you are offering is the maximum you can afford?

If you haven't I would do this as the next step in response to this letter from them. I would stop talking to them by phone and even in branch and have everything in writing.

You might want to post your income & expenditure on here first so that we can look to make sure there isn't anything over the top that means the bank will refuse to accept your repayment plan (like overspending on luxuries or not budgeting enough in essential areas).

Aside from the overdraft and your bank loan do you have any other debts?

If you fill this form in http://www.makesenseofcards.com/soacalc.html we might spot savings you could make that would mean you could afford to pay HSBC more each month.

gonzo127

missb1981 wrote: »

On Saturday I received a letter saying unless I pay £2074.89 within 18 days action will be taken against me which could include Debt Collectors, Solicitors or Court Action so I am obviously really worried about this but cannot see what I can do as I do not have the full amount to pay in one go but can commit to a payment plan.

Any assistance would be so appreciated as I just do not know what to do!!

right calm down and look above, i have highlighted a very important wording on the letter.

right now down to business, and this always sounds silly but having it handed to a debt collectors can be the best thing for it! as they usually have more 'wriggle' room on their system for setting up payment plans etc. and remember debt collectors have no more rights to seize your assets than a paper boy does so do not be bullied by them if in doubt ask here for advice, and remember ONLY a court appointed bailiff can seize assets, and to get to that point is a very long road

just a couple of bits of advice,

do not do any more dealings with them on the phone, get EVERYTHING in writing, as from above it sounds like although you have done everything they have asked yet you do not have any proof that you have.

the next thing you need to do would be a SOA (statment of affairs) and post it up here so we can try and help you spot any areas in which you could make savings, including suggestions on how to make them

missb1981

Thanks for all your help .... just trying to complete the SOA but its not calculating my results think I have done something wrong, will try it again.

missb1981

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1900
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1900
Monthly Expense Details
Mortgage................................ 500
Secured/HP loan repayments.............. 250
Rent.................................... 0
Management charge (leasehold property).. 100
Council tax............................. 75
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 10
Mobile phone............................ 40
TV Licence.............................. 8
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 50
Clothing................................ 0
Petrol/diesel........................... 20
Road tax................................ 10
Car Insurance........................... 40
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 8
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1211

Assets
Cash.................................... 0
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 106000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 95000....(500)......0
Secured Debt.................. 25000....(250)......0
Total secured & HP debts...... 120000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
CC.............................12000.....350.......0
Loans..........................8000......250.......0
Total unsecured debts..........20000.....600.......-

Monthly Budget Summary
Total monthly income.................... 1,900
Expenses (including HP & secured debts). 1,211
Available for debt repayments........... 689
Monthly UNsecured debt repayments....... 600
Amount left after debt repayments....... 89
Personal Balance Sheet Summary
Total assets (things you own)........... 106,000
Total HP & Secured debt................. -120,000
Total Unsecured debt.................... -20,000
Net Assets.............................. -34,000

missb1981

The above doesnt really give a completely accrurate reflection of the situation as my partner gives me a bout £250 per month towards bills so there is a bit more income which I forgot to add.

gonzo127

missb1981 wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1900
Partners monthly income after tax....... 0 - your partner doesnt work?
Benefits................................ 0 - if partner is not working you need ot check out what benifits you are entitled to (http://www.entitledto.co.uk/Default.aspx?AspxAutoDetectCookieSupport=1)
Other income............................ 0
Total monthly income.................... 1900
Monthly Expense Details
Mortgage................................ 500
Secured/HP loan repayments.............. 250
Rent.................................... 0
Management charge (leasehold property).. 100 - what is this actually for?
Council tax............................. 75
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 10
Mobile phone............................ 40 - this is quite high, are you using all your mins and texts if not call your provider and ask if you can drop the tarrif (worst they can say is no)
TV Licence.............................. 8
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 50 - i think this is probably more i usually tell people to aim for £60 per person per month (some people do do it for less granted) however £50 for 2 people for a month seems too low
Clothing................................ 0
Petrol/diesel........................... 20
Road tax................................ 10
Car Insurance........................... 40 - this is high when is renewal? do comparisons and use a cashback site like quidco when you renew
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 8
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 - who od you buy for? could possibly drop this a little if its only for you and your partner
Haircuts................................ 0
Entertainment........................... 20 - look at what you can do free now the weather is getting better
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1211

Assets
Cash.................................... 0
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 106000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 95000....(500)......0
Secured Debt.................. 25000....(250)......0
Total secured & HP debts...... 120000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
CC.............................12000.....350.......0
Loans..........................8000......250.......0
Total unsecured debts..........20000.....600.......-

Monthly Budget Summary
Total monthly income.................... 1,900
Expenses (including HP & secured debts). 1,211
Available for debt repayments........... 689
Monthly UNsecured debt repayments....... 600
Amount left after debt repayments....... 89
Personal Balance Sheet Summary
Total assets (things you own)........... 106,000
Total HP & Secured debt................. -120,000
Total Unsecured debt.................... -20,000
Net Assets.............................. -34,000

just made a couple of comments above

missb1981

Thanks ... Sorry my partner does work I just missed that box and didn't realise till after I posted it. Will look at the other comments as well. This website is great and everybody so helpful.

mixedupdebt

Hi MissB,

First off - well done on making the post. Its part of the hardest bit to do - actually starting to deal withthe debts! While it may appear to you that its a lot of debt, don't worry too much about about it. So long as you can comfortably deal with it - you will be ok. Only ever pay the creditors what you can afford and never fell presurred into paying large lump sums if you can't afford to.

From your SOA, you owe £34k more than you have in assets. However, you appear to be meeting your repayments each month from your earnings. Is the HSBC amount extra to this? Or are they just looking a full repayment? Missed many months or have growing defaults?
Without knowing the APRs of your loans and CCs, you may be able to shift some debts around to lower rates first - or consolidate them to fewer lenders.

Failing this, you need to do the following:

1. First thing to do to add a bit more weight to your letters to HSBC is to register with either the CAB, CCCS or National Debt helpline to get a ref number. They should also be able to deal directly with HSBC for you to set up a repayment plan.
2. If you can manage all the other debts ok and its just HSBC that want full repayment, write and offer them something like £20 a month (still leaves you with £69 from your income). Enclose a full copy of your SOA so they can see the figures and list your reference number from the above point. Plenty of template letters knocking around on this.
3. Continue to make payments to them even if they have not accepted your offer.
4. Wait and see what they do next. This will give you some more time to talk with the above charities on your debt and see what they advise.

Hope it helps a bit.

Good luck.

mixedupdebt

Given your extra post on the extra £250 each month, I'm not sure where the problem lies as you have £339 left over each month. If this is before paying off HSBC, you will need to offer them more than my £20 offer above. Try offering them £100 a month and then put some of the remaining money each month into a small savings pot to be able to pay a lump sum at the end of the year.

Still also look at shifting your debts to lower rates as well as the other comments posted above.

Mixedupdebt.