HSBC and DMP help needed

flower_chops

I've done a couple of similar posts to this before but I'm getting very confused and teary about it all today. I'll try to write this as clearly as possible and really appreciate any advice anyone has...

I have a £15,000 loan with HSBC (£11,500 before protection) and a £300 overdraft facility which currently has £13 odd overdrawn. The overdraft was originally at £300 overdrawn. The loan repayments were agreed at £320.62 per month. Also, would I get a lump sum off the loan including that which I've already paid for? I've never made any claims on it.

Since struggling with my debt I set up a DMP with CCCS (set up March 2006)which has helped me feel more in control of my finances. I pay £207 per month towards the loan and £9 odd towards the overdraft. This was done with a good tight budget and was the maximum I could afford to pay off my debt to HSBC...I am now in a position to pay off more but forget that for now!

However, HSBC refused my offer from the word go and would only agree to it as one of their "managed loans" - no way jose. That would be around £4000 (!) on top of the existing debt over a much longer period of time. I would like to pay my debt off quicker than that. Once i have missed 6 payments my account will default and my debt given to Metropolitan DCA. This is what I want to hurry up and happen as CCCS say that 9/10 they are more responsive to freezing interest.

I have just answered the last of eleven phonecalls since yesterday morning from HSBC saying that they will just take the loan payment in full for the second time out of my overdraft account when the CCCS payment goes through. I have said that this isn't what I want. To me, this is still them getting their full payment when they have offered no support, only harrassment at all hours. I just want to point out that yes, I KNOW it's my fault I'm in my debt and really don't want to get into one of those conversations, however, I want to pay off as much as my debt as quick as possible.

So, firstly, as my overdraft is only at £13 at the moment can I phone up and cancel it to say £20 until the next payment goes in and then cancel all of it? At least then, I thought the bank wouldn't be getting the overdraft interest... At the moment the CCCS payment is going into the loan account, bouncing backout as it's not the £320.62 they want, going back into the current account and then clearing the overdraft. Once there's enough in there they take the full payment and it feels like I'm getting nowhere. So, rather than my £207 being paid each month on the loan it's the £320.62 once every 2/3 months.

Also, I want to cancel my loan protection. I have just started a new job with more money and have had no sickness really ever. So, does anyone know an address I need to write to to get this cancelled asap? I've spoken to CCCS about it and they're ok with it. The girl at HSBC said I'd have to go into the brance and they'd give me the address but the way I'm feeling I'll either burst into tears or hit someone!!!!

Thank you for reading (if you haven't fallen asleep that is!). It feels good just to write this down. I really really am trying my hardest to pay my debt off and with all the invaluable advice I've had on here it has helped no end. The reason I want to get my debt paid off so quickly is because me and OH would dearly like to start a family in the next couple of years and want it all behind me.

madduck

Have you opened a new current account when you started your DMP? Bit confused as to why HSBC still seem to be treating your account with them as 'live' and taking loan payments from it.

To be honest, from what you say it does seem that things will only move on when HSBC pass to a DCA.

Have you spoken to CCCS about the problems that you're having with HSBC - do they have any suggestions about how to handle?

If you're being bombarded with calls from HSBC you do have the right to tell them that you don't wish to be contacted by telephone and that all future communication should be in writing. If you do a search on this board you'll find a template letter that can be used.

I know that things seem really black just now, but most of us who have gone onto a DMP have experienced something like this. Some creditors are great and realise that you are having problems but are taking action to try to get yourself out of the hole that you are in. Others are like HSBC are with you. My own personal bug bear was Northern Rock. They were real gits!!! "Do you have any intentions of paying off your debts Miss X?" Well of course I do, if I didn't I would have just run off and not paid you a thing!!!

rog2

I wish you good luck. I suppose that it is 'normal' that HSBC will try to 'sell' you their managed loan - after all they are a financial institution, and this way they stand to make even more money from you, with the minimum risk to them!!!! (I too am with HSBC and appreciate your situation).
I am afraid that there are lots of threads where Banks switch funds from one account in order to satify another - it's probably written into the minute print in their terms and conditions.
As far as the loan protection cover is concerned, I am not qualified to advise, however it does seem expensive and you must ask yourself whether you need it. I personally would cancel - if you do lose your job, or have to go into hospital, most insurances only pay the minimum amount, and have got so many terms and conditions that, surprise, surprise are there as much for the protection of the creditor as for you.

joolz43

HSBC are doing exactly the same to me. The CCCS pay into my loan account and for some reason they then put it into my current account. They then direct debit then return the DD and charge me £30 for the privledge! Bizarre in the extreme and quite mad.

joolz43

But I am going to start on them for bank charges this month coming!

flower_chops

Thank you all for your replies. It' really nice to know that there's others in the saame boat. Am just going to phone CCCS now and then pop down the bank to get this loan protection cancelled. That'll be around £3000 off my debt!

flower_chops

Just called CCCS and am now going down the bank to cancel the overdraft and the loan insurance. Think I'd been so brainwashed into thinking that I'd need it it hadn't occurred to me to cancel it!

flower_chops

Gah - cancelled the overdraft facility no problem but to cancel the loan protection they have to set up a whole new loan which I cannot agree to.