HSBC Credit Card Advice....

sharonfrancis

I am after a bit of non-judgemental advice....... apologies for long post......
I am posting for my partner.

He owes abut 4K on a HSBC Credit Card.
In July last year he was made redundant - he did not receive any payout as he was with the company less than 2 years.
He wrote to HSBC then to warn them and asked to be put on a payment programme paying £50 off month. He asked for the interest to be frozen. He was going to claim JSA but fortunately found a low paid warehouse job. He was made permanent in November. But his salary was still fairly low paid. We just about break even each month.
We have kept HSBC up to date with developments and always made the £50 payment - montly phone calls - we also sent them letters / SoA in July, Aug, Sept. They were still charging us interest for those months so the Sept letter was to ask them to freeze interest. They responded in November thanking us for our communication and that they were happy for £50 for 3 months and they would freeze interests! In late Feb my partner was signed off with depression and stress. Round about the same time HSBC did not let up with the phone calls / texts / nasty letters - obviously the 3 months had come to an end! (they even called on a Sunday and 0830 on a Monday morning!). I spoke to HSBC myself direct as he was really struggling. Spoke to a really helpful, understanding lady - she took his number off the system so he wouldnt get any phone calls / texts. She says they would freeze interest and continue to accept payments of £50 for next 3 months........ so you can imagine our disappointment when we received statement with interest on........ Made a phone call to HSBC - didnt get anywhere....they said we would need to talk to the "HSBC Financial Guidance Team" and gave us a number....... which was dead! ARGH!! you can imagine our frustration! He hasnt made any headway with getting the debt down and in fact owes more.....
I am not sure of his next steps - do we just ignore the fact they are putting interest on? and keep to the £50 payment as agreed. Or write another letter? They only responded to 1 letter out of 3 that was sent - and that was 3 months after we wrote to them. We dont seem to be getting anywhere with the phone calls..........

When I was in my early 20s I got into trouble with a Barclaycard CC - they put me on a payment programme, froze interest- took me 3 years to pay off and I did it!!!! I dont understand why HSBC cant do something similiar - instead they need to review the arrangement every 3 months - and we are still being inundated with letters / calls / interest being charged.......

HELP!!!

Tixy

I would suggest he writes to them again, states that he can still only afford £50 a month and ask them again to freeze interest & charges. If he is not currently working then I'd mention that in the letter and that his only income is benefits. I'd send the letter recorded delivery.
He could also say that it was agreed on a phone call on x date in Feb that interest would be frozen and ask them for the next 3months and request that they remove the interest that he has been charged on his March statement.

It may be that they originally agreed just a 3month arrangement to freeze interest in the hope that he would then be able to increase his repayments and they wouldn't need to formally enter a default on his credit record (perhaps they'd only entered an arrangement to pay notice up to that point).

If you want to stop calls then he can send a letter requesting that all future communication is in writing see here - http://forums.moneysavingexpert.com/showpost.php?p=11571485&postcount=4