HELP PLEASE with HSBC

missangel_2

I am having huge problems with HSBC so wanted to check if anyone can help or suggest the best way to handle them.

I started a DMP with Payplan end of last year and all my creditors have accepted except HSBC. I owe HSBC about £12,000 in total, £6000 on a credit card, £2000 in an overdraft and the rest in a loan. They initially offered me another loan which I declined.

They have since sent me letters stating 'they do not except any of my repayment offers because the offer would not be sufficient to cover interest on any agreement they are able to make on the accounts, Acceptance of this offer would result in the debt not being reduced and it would be irresponsible on the banks part to make an arrangement which would not be benficial to the customer' - 'unless an acceptable repayment offer can be reached their normal recovery procedures will be followed' - 'they urge me to take a course of action and failure to do so may have serious consequences'

I really don't know what to do, should I offer them a slightly higher repayment even though I can't really afford it? I'm really worried about what they will do. I had banked with HSBC for over 30 years and out of all my creditors they are the only ones causing me real stress and worry.

If someone can help me with this I'd really appreciate it.

Thanks

Clare_B_4

I had real problems with HSBC when I set up my DMP with CCCS (I don't have any experience with Payplan, but I'm guessing they're similar?). They constantly called me even when I told them I would only correspond with them by letter. They wouldn't speak to CCCS directly and eventually sent my debt to a debt collection agency, who accepted the amount offered through CCCS.

It sounds drastic and a bit scary but it actually ended all my headaches with HSBC, and I've had no problems with the debt agency since.

Tixy

Hi

Its really tough when they send letters like this but in no way should you agree to pay them more money, you will be breaking the terms of your DMP and it could lead your other creditors to reject it.
You could write back stating that your other creditors have accepted equivalent pro-rata offers and under the terms of your DMP are unable to offer them anymore and quoting the letter back at them and asking them to reconsider freezing interest on your accounts (which it sounds like they haven't done so far) - the 5th letter on this link may help - http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6 'when your creditors refuse to freeze interest'

Jesthar

Hi missangel

Not my specialist subject, but didn't want to read and run

A DMP demands you treat all your creditors equally, so you can't pay HSBC a larger proportion than anyone else, it's not allowed. They are just being bullying; they know the rules - notice how they are trying to make out that them demanding more than you can afford is in *your* interest? Well, it isn't - it's only in *their* interest, always remember that!

Anyway, they should be corresponding with Payplan, not you - have you spoken to Payplan about this? And at this stage, you will be no worse off if they do pass the debt on to a Debt Collection Agency, anyway - possibly better off! So don't worry about that.

Incidentally, when was the credit card taken out? I don't usually advocate challenging the enforceability of a debt whilst it is still with the genuine creditor, as I believe it should be repaid if at all possible, but as they are being so unreasonable I can see the case for making an exception in this case...

~Jes

missangel_2

Thank you for all your replies. It's definitely given me strength to challenge them.

Jesthar, the credit card was taken out quite a few years ago, I know you mention the 'enforceability of a debt' what do you mean by this exactly?

Thanks again for all your help.

dancingfairy

Basically if they haven't got all their paperwork in order and it doesn't meet all the correct legal requirements they are not allowed to chase you for the debt. I think technically you do still owe the money but they can't chase you for it (I'm sure someone will clarify this).
df

rustybucket

Ok, sit tight, let the letters continue, reply that you cannot pay what you cannot afford.

Expect in a few months a letter from Metropolitan Collection Services who have taken the debt on.

Expect your offer accepted.

Metropolitan Collection Services are part of HSBC, why they have to go through all this bull !!!! is beyond me, but keep chipping away and don't get too stressed, things will work out

Jesthar

missangel wrote: »

Jesthar, the credit card was taken out quite a few years ago, I know you mention the 'enforceability of a debt' what do you mean by this exactly?

It in essence means you challenge the company to produce a valid copy of the Consumer Credit Agreement you should have signed when taking out the Credit Card or any other Credit arrangement (store card etc.). These have to contain certain legally required elements, and if those are not present the credit agreement is not legally binding and the creditor cannot legally force you to pay them back. You may choose to pay anyway as a matter of principle, but that is at your discretion.

The process is pretty straightforwards, and only costs a few pounds to do yourself. You can only do it if the account/card was opened before April 2007, but the older the account, the greater the chance that they either cannot find the agreement, or that it will not be legally valid (many banking organisations were rather sloppy about their paperwork until recent years, thinking consumers would never dream to challenge the legal enforceability of the agreements they had made!). You should also only do this if the account has already been classified as 'defaulted', but I suspect that as you are entering a DMP this is probably the case.

I suggest you see this thread for expert information, as my knowledge of the process is only basic.

https://forums.moneysavingexpert.com/discussion/2305463

As previously noted, I am not normally an advocate of challenging a debt whilst it is still with the original creditor, but given the way you are being treated despite trying to do the right thing... Or you could wait for them to pass it on to their pet DCA and then do the CCA on them.

~Jes

missangel_2

HSBC have just sent me another letter relating to the outstanding credit card I have with them it says 'this is a default notice served under section 87 (1) of the consumer credit act 1974' - it gives me till the 16th June to rectify this or they will take further action. should I just send yet another letter to them saying I'm unable to pay anymore etc or should I just sit tight? Will they now just pass the debt onto a debt collection agency which everyone seems to think will be better for me?

I'm sure further letters will come from HSBC relating to the other outstanding debt I have with them, a loan and overdraft so do I just do the same for them?

I have looked into my credit card and I'm trying to establish whether I took the card out before 2007 but it's very hard as i have only kept statements up to 2008. Should I just ask for a CCA anyway?

Thanks for any help....

SEZY

I am having the same problems with HSBC, they constantly ring up to 10 times a day. They advised us to go to CCCS and also wriiten to me advising us to go to CCCS because they wouldn't help us. I just ignore them now, as they can't have what I haven't got..

Donegal_Paul

HSBC are right g*ts in my opinion, quite a lot of poor communication and bully boy tactics.

I've been in a similar situation, have gone down the unenforcability route but all was in order and most recently wrote asking them to write off the debt given my circumstances.

Their reply was to write back this week stating i had not replied to them (all letters sent recorded delivery) and that they had sent it to Metropolitan, already got a letter from them too.
Interesting to note that they are in fact part of HSBC!!

Re the phone calls, I got peed off with the amount too so told them to stop and to make all further communication in writing, they ignored this so i sent the first harassment letter as on this site, then i got a few more and was quite snotty with them and pedantic asking if they had my file in front of them etc and if they could understand the meaning of it etc, they couldn't promise they wouldnt stop calling and I said if they do ill take it to the next level ie ofcom etc and ended up sending the second letter.

Now, no more calls and a reply from the Service improvement manager stating that they are investigating my complaint and that I will recieve a reply in due course.

Of course now that Metropolitan are involved it may all start again but im better prepared this time and im going to write to them reiterating my situation etc.