HSBC Final Demand Letter

dannyboy20

Today I received a final demand letter from HSBC. They are demanding immediate repayment of £755.74 from which I owe them due to me going overdrawn in my personal bank account. The letter states I have 7 days to repay in full or let them have "satisfactory proposals for repayment by installments or otherwise".

I did have a an overdraft of £500. This was extended temporarily last month to £680. This was due to me winning an employment tribunal case against my old company and I was waiting for the money received from them. But I have still yet to receive this money (see below) and due to DD's being cancelled and other charges my balance has esculated to over £840 of which I managed to pay around £180 back in the last week.

I haven't used my bank account in over 2 months now. Except for a mix up with my mobile phone service provider earlier this month taking money from my account even after I cancelled the DD and paid by other means. I was charged £30 for the cancelled DD and £25 for taking money from my account due to this but the service provider is going to reimburse me this money.

Now back to the money I am owed from my previous company. I won the tribunal back in June/July. The tribunal decided unanimously that I am owed £1136 due to unpaid wages from back in November 2005. I waited the 42 days but received nothing at all from the company. Around 4 weeks ago I threatened them with county court action and promptly received a letter they had sent to the tribunal and was CC'd to me from the companies solicitors. Basically they were asking for another hearing of the tribunal due to the company "not knowing about the hearing date due to lost mail".

A couple of weeks ago I received a CC's letter from the tribunal denying the company a re-hearing and that they still owe me £1136. I have now written a letter to the company giving them a final seven days to pay in full else I will be enforcing the decision via County Court.

So my point being, I am still owed £1136 from my previous company. I have all paperwork from the tribunal and letters sent, and they have a final seven days to pay before I go to county court. Would the bank be interested in this information and give me a little extra time to get this money?

My income at the moment is minimal. I have recently opened a small unit selling computer media and accessories which i am helping run with my dad (this is one of the main reasons i am in debt due to me buying stock). It is going slow at the moment but I can pay around £40 per week to the bank, although i'm not sure if they would find this satisfactory?

I am pretty scared now as I have been threatened with debt collectors and court action in the letter i've received. I know I need to write to the bank but what's the best course of action to take? Explain to them about the £1136 i'm owed? Or just tell them I can afford to pay £40 per week at the moment?

Thank you for any advice in advance

Storm

As they've asked for full payment OR satisfactory proposal for repayment by installments I would suggest offering a small weekly amount, with full settlement once you receive your payment from your previous employer. It may well be worth giving them a precis of your situation, about the 7 days they've got left, but it may have to go to county court, so they are aware that the money may be there in a week, or might be longer - and make sure you send it by recorded delivery!

Good luck with getting your money!

dannyboy20

Thanks for your help Storm, it's much appreciated. I need to get this letter sent off tomorrow because the letter dated on the bank is 19th October, which I received today, and they have given me 7 days to repay in full so i haven't got much time really.

mummyemma

I would reply to letter saying thank you for letter dated XXX i have recieved this today (date), then put what you are willing to offer. Only offer what you can afford and maybe put in a copy of income and expense to prove thats all you can afford

Sorry not much help

Emma