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Should I be worried about Metropolitan?
InDeepDebt
Posts: 240 Forumite
Hi
Just had a really strange phone call with HSBC. I'll fill you in with the background first.
My OH has a credit card debt with HSBC, as do I. Anyway, this is regarding the debt that the missus has.
We advised them (HSBC) that we couldn't afford our minimum payments so made token payments. Sent an SOA and offered them the pro-rata payment. It was about £50 a month for the wife's card which had a balance of £10k.
This carried on until about April 2010 until HSBC advised that they would default us unless we paid more. We really can't have a default so agreed to their demands of £100 a month. Interest was frozen. In about September we were told that we had to pay £110 a month (originally they wanted about £130 but we knocked them down).
In November we got a 'Notice of Default'. This was a demand for about £300 or get a default - we paid the £300.
Anyhow, today we get a 'Final Demand' letter. I'm sure that it's a standard letter but it has stuff in it like the fact that we have a 'DEFAULTED DEBT'. I rang the number and got through to a Chinese person (makes a change from Indian). He advised that in order to keep the debt with HSBC I had to increase my payments to £131 a month. The interest would also be re-applied to the account (reduced mind at 0.5% a month).
The alternative would be that the debt is transferred to Metropolitan and a mark would be placed on a credit reference agency file. My wife already has loads of late payments on her file anyway against HSBC. When I asked what sort of mark would be placed on the credit file, the person on the phone would not give me a definitive answer. I asked whether it would be a default but he wouldn't confirm this - I believe that I would need another 'notice of default' before getting a default.
Anyhow, it would seem that if we keep paying £110 a month then the debt will be transferred to Metropolitan. There will be no interest. The person on the phone seemed to think that this was a bad thing.
So, questions. Is it such a bad deal to have the debt with Metropolitan with no interest against with HSBC with reduced interest? How long do late payments stay on a credit report? Other than late payments and defaults, what other mark can go onto a credit record? Do HSBC have to send another 'notice of default' before they can default us - we adhered to their demands in the last notice.
Many thanks in advance - apologies for the long post.
Jim
Just had a really strange phone call with HSBC. I'll fill you in with the background first.
My OH has a credit card debt with HSBC, as do I. Anyway, this is regarding the debt that the missus has.
We advised them (HSBC) that we couldn't afford our minimum payments so made token payments. Sent an SOA and offered them the pro-rata payment. It was about £50 a month for the wife's card which had a balance of £10k.
This carried on until about April 2010 until HSBC advised that they would default us unless we paid more. We really can't have a default so agreed to their demands of £100 a month. Interest was frozen. In about September we were told that we had to pay £110 a month (originally they wanted about £130 but we knocked them down).
In November we got a 'Notice of Default'. This was a demand for about £300 or get a default - we paid the £300.
Anyhow, today we get a 'Final Demand' letter. I'm sure that it's a standard letter but it has stuff in it like the fact that we have a 'DEFAULTED DEBT'. I rang the number and got through to a Chinese person (makes a change from Indian). He advised that in order to keep the debt with HSBC I had to increase my payments to £131 a month. The interest would also be re-applied to the account (reduced mind at 0.5% a month).
The alternative would be that the debt is transferred to Metropolitan and a mark would be placed on a credit reference agency file. My wife already has loads of late payments on her file anyway against HSBC. When I asked what sort of mark would be placed on the credit file, the person on the phone would not give me a definitive answer. I asked whether it would be a default but he wouldn't confirm this - I believe that I would need another 'notice of default' before getting a default.
Anyhow, it would seem that if we keep paying £110 a month then the debt will be transferred to Metropolitan. There will be no interest. The person on the phone seemed to think that this was a bad thing.
So, questions. Is it such a bad deal to have the debt with Metropolitan with no interest against with HSBC with reduced interest? How long do late payments stay on a credit report? Other than late payments and defaults, what other mark can go onto a credit record? Do HSBC have to send another 'notice of default' before they can default us - we adhered to their demands in the last notice.
Many thanks in advance - apologies for the long post.
Jim
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Comments
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I don't know the answer but hopefully someone will be able to help soon.0
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The credit file will already be knackered. Defaults fall off after 6 years.
If hsbc are adding interest, let them sell it to metropolitan and pay the 110 without interest.
Personally, I wouldn't pay anyone 1p until they cease ALL interest.Happiness, is a Kebab called Doner.....:heart2::heart2:0 -
our Business debt has just been passed to Metropolitan, so i would be interested in any one's opinion of them, we need to make an offer and i'm hoping that they will be more understanding to our situation ( DH made redunadant) than HSBC were able to be.2 adults 4 children Eldest 14 yrs old youngest 1yr old,
Total Credit July £38K Aug £37K Sept £37K Oct £33K Nov £26K Dec £60K May £56K Nov £52K Apr £21K :eek:
What most people need to learn in life is how to love people and use things instead of using people and loving things0 -
This thread caught my eye as I knew I had had letters from Metropolitan before. So having dug out my debt letter folder I found the letters. Mine were for a debt with First Direct, I got 2 letters from Metropolitan which were quickly followed up by hundreds from DG Solicitors. I think that both Metropolitan and DG Solicitors are the in-house debt collectors. It wasnt until the debt was with Link Financial that I actually got a letter saying dont pay anymore to HSBC.
In my opinion I would say if your debt is being transferred you may have or are on the way to being defaulted. You are already on a payment plan and not paying full requested amount and having interest reduced so have broken your contract so I dont think you would have grounds/defense to stop it.
Edited to add, late payments and defaults stay on a credit file for 6 years.
Marks on credit file include S for Settled, D for Defaulted, AP for arrangement to pay and numbers which show how far behind you are eg 1 is one month in arrears etc.Light Bulb Moment - 11th Nov 2004 - Debt Free Day - 25th Mar 2011 :j0 -
Just to make you aware, Metropolitan are HSBC, they are the debt recovery team that is owned by HSBCI am a debt counsellor working in the voluntary sector - we don't charge our clients for the work we do!0
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I am in a arrangement with Metropolitan over a business overdraft with a personal guarantee attached with HSBC. The debt was for £9k and i have been repaying at £150 per month. No interest has been applied and they have not marked my credit file with a default. In fact nothing shows on my credit file from them.
I also still have all my other banking facilities with HSBC i.e. credit card and overdraft. Maybe i have been lucky and it is just an oversight about the default or they may not be able to apply a deafult due to the nature of the debt.Total debt December 2010 = [STRIKE]£47,365.08[/STRIKE] Total debt January 5th 2011 = [STRIKE]£47,080.89[/STRIKE]
Total debt February 5th [STRIKE]£46,431.12 [/STRIKE] Total debt 5th March 2011 = [STRIKE]£45,865.41 [/STRIKE] Total debt 5th April 2011 = [STRIKE]£45526.29 [/STRIKE]Total debt 5th May 2011 = £44764.56[/STRIKE]Target debt for Dec 2011 = £40,000.000 -
Samuel, can i ask, did you deal with them via phone or letter, the letter we have had from them asks us to ring them, but everything in me says to send a letter, How have they been with you, are they easy to deal with, re business debts?2 adults 4 children Eldest 14 yrs old youngest 1yr old,
Total Credit July £38K Aug £37K Sept £37K Oct £33K Nov £26K Dec £60K May £56K Nov £52K Apr £21K :eek:
What most people need to learn in life is how to love people and use things instead of using people and loving things0 -
well spoke to them and offered an amount in full and final, all we can do is hope they accept it2 adults 4 children Eldest 14 yrs old youngest 1yr old,
Total Credit July £38K Aug £37K Sept £37K Oct £33K Nov £26K Dec £60K May £56K Nov £52K Apr £21K :eek:
What most people need to learn in life is how to love people and use things instead of using people and loving things0 -
have not heard anything back from them yet, any ideas how long they normally take to reply?2 adults 4 children Eldest 14 yrs old youngest 1yr old,
Total Credit July £38K Aug £37K Sept £37K Oct £33K Nov £26K Dec £60K May £56K Nov £52K Apr £21K :eek:
What most people need to learn in life is how to love people and use things instead of using people and loving things0
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