No one is collecting the money owed

Yazmina

I know someone who owes around £13k. He was in an IVA but the company collecting it suddenly stopped the DD. The company referred my friend back to the bank but the bank (Halifax) said it was between him and the IVA company. The IVA company will no longer speak to my friend saying that they have discharged him back to his bank. My friend contacted the CAB who said to contact the bank that was involved in his debt originally - HSBC. HSBC said they would contact the IVA company and get back to him. Until now there's been no contact and the debt is sitting uncollected. HSBC don't have an account for my friend because they closed it when he went into the IVA.

I've advised my friend to keep aside the amount he was paying each month until he can sort everything out, but he doesn't know what to do and I've no idea what to advise him.

Any thoughts?
Thanks.

tallyhoh

What was the company collecting it?

Yazmina

I don't know the name of the company.

tallyhoh

Yazmina wrote: »

I don't know the name of the company.

If you can find the name, a google might turn up why they are no longer collecting.

Yazmina

Ok, thanks. Is it worth telling my mate to approach a new debt management company? If so how should he choose one?

mrsb83_2

Your friend needs to contact a debt charity urgently.

tallyhoh

Was it an IVA or a debt management plan? there is a difference. A few debt management companies have gone bust.

Yazmina

Got a text saying it was Harrington Brooks. Googled them and they seem to be alive and kicking and highly recommended. He's already spoken to the CAB, are they not very good?

mrsb83_2

Yazmina wrote: »

Got a text saying it was Harrington Brooks. Googled them and they seem to be alive and kicking and highly recommended. He's already spoken to the CAB, are they not very good?

[TEXT DELETED BY FORUM TEAM] He will get better advice and assistance from a debt charity.

tallyhoh

mrsb83 wrote: »

They are not specialists. He will get better advice and assistance from a debt charity.

I'll second that. Harrington Brookes take a chunk of the money paid each month instead of it going towards your debts.

Yazmina

Reviving my old thread because the debt is still not being collected and I don't know what to advise. My friend is dealing directly with HSBC and although he says they've informed him of the repayment terms they still haven't started collecting the money. It's been several months now. Is there any reason that a bank would do this? He seems to think that he is small fry to the bank and that's why they're not paying him much attention.

I don't understand why HSBC wouldn't collect even if £13k isn't much to them.