Loan written off at HSBC-what happens next?

SnowWhiterThanWhite

Hi,

I have been trying to help a member of family who, we have only recently found out, has been in financial difficulties for months after previously being self employed.

He has completely buried his head in the sand, hasn't been opening mail, answering phone etc.
His mortgage is 3 months in arrears, he has a loan and overdraft with Lloyds, again, in arrears.

His mortgage, I believe is below 10k and is currently £750 in arrears, which another family member is going to pay.

I have been to Lloyds who have accepted a small monthly payment to cover loan and overdraft.

His income is £104 JSA per week. His mortgage payment is £251, his lloyds loan is £110 (Reduced to £20 temporarily), plus an overdraft which is steadily increasing due to bank charges.
We have cancelled all direct debits & standing orders in order to try and reduce charges, but this won't stop the usual overdrawn without authority charges.

When we went into HSBC, I was shocked to find out that his loan was 6 months in arrears, final demand was issued, and his account written off to debt collectors. We understand the total balance of both loan and overdraft to be in region of £5500

The mortgage is hopefully being sorted, as is Lloyds loan & overdraft, but, can anyone offer any advice about the accounts that are now in the hands of debt collectors?

How long will it take for them to contact him? Will they add on more charges and interest? Will they accept a small repayment until, hopefully, things get better?
Finally, if he carries on the way he is, and ignores further letters, will he get bailiffs knocking at his door? He doesn't have anything of value, apart from his flat, but even that is falling into a state of disrepair.

He has 2 small children and a partner who works occasionally, he was vague about her finances, but from what I can gather, she earns just enough to cover food bills.

Any advice welcome

andy.m_2

accout not writte off, passed over the debt collection agency.
I'd be amazed if they haven't already been in touch.

SnowWhiterThanWhite

andy.m wrote: »

accout not writte off, passed over the debt collection agency.
I'd be amazed if they haven't already been in touch.

Not yet - when we went into HSBC, although the current account and loan appeared on the list of accounts, when the CSR called India (where their 'specialist lending' team are based), we were told that accounts were, as we speak, being closed and placed with debt collectors.
Just really wanted to know what happens next re charges and collection of debt?

fatbelly

I think you'll find the balance frozen and the debt passed to Metropolitan Collection Services, which is part of the HSBC family.

He can make an offer to pay what he can afford, which may well be a token offer.

See if you can get him to post on the debt free wannabe board for advice.

SnowWhiterThanWhite

fatbelly wrote: »

I think you'll find the balance frozen and the debt passed to Metropolitan Collection Services, which is part of the HSBC family.

He can make an offer to pay what he can afford, which may well be a token offer.

See if you can get him to post on the debt free wannabe board for advice.

Thanks, I didn't realise that Metropolitan was owned by HSBC-Hopefully, he can prove what little income he has, and they will accept a small repayment until things improve.