Confused: Being chased for written off debt.

Caneluna

Great Forum : I hope someone can help me understand my situation.

I had a debt with HSBC of £1750. When I became disabled and unable to work I came to an agreement to pay £1.50 Interest free. Which was paid monthly to Metropoltan Collection Service ( which I believe is part of HSBC). I eventually asked if they would consider writing-off the debt as it was improbable that I would ever return to work. They requested medical documentation and doctors letters which I promptly sent them and they agreed in June 2007 to no longer pursue the debt. I have this in writing from them.

I am now being contacted by company called MK Rapid Recoveries who claim that they have purchased the debt and are pursuing me for payment.

I am confused. Why have HSBC "sold" a written off debt to another company and is this legal. Where do I stand and what should I do?

I hope somebody can help.

Many thanks

vuvuzela

What is the exact wording of the letter you received from HSBC ? Did it specifically state the debt was written off or just that they were not planning to pursue it ?

Caneluna

Thank you for your time: The exact words they use are:

We are no longer perusing you in connection with this debt.

The letter is dated 28th June 2007 and I have not heard anything from them since.

Gordon_Hose

Ok, debts don't get "written off". As they stated they would cease any recovery attempts. That is it, the debt still exists, they just agreed to stop chasing you for it.

This debt has obviously been sold on without the new owners knowing that the old owners had agreed to stop chasing you. This is extremely cheeky, but the way I look at it is one DCA has done another over (albeit an in-house DCA), which has made me chuckle! lol

If you have it in writing that HSBC would stop pursuing you for the debt then send a copy to the new owners and tell them you won't be paying anything.

awayinchina

Also add into the letter any further demands will be harrassment and will result in legal action and you informing the media.
have a nice day! <don't put that in

Caneluna

I do have the letter from Metropolitan (Hsbc) dated 28th June 2007 that states (their words)...


...we confirm that we are no longer pursuing you in connection with this debt.


I sent a copy of this to MKKR and they have written back to me with a letter that encloses a copy of a Notice Of Assignment, addressed to me from HSBC dated 9th March 2012., which I personally have never received


Also the Notice of Assignment included and address to me has the HSBC logo but nothing else (no address no contact details of the sender) but it is signed by the Head of Recoveries of the HSBC Bank.


In the letter from MKKR they state that my account has been assigned to MKDP LLP and that they, MKDP LLP have appointed MKRR as their serving agent to manage my account on their behalf.

Question: Can HSBC "sell" a debt that they are no longer pursuing (because of my medical condition and financial situation) in the full knowledge that a repayment will never occur (my situation is unlikely to change) ?

Gordon_Hose

Yes, they can sell it at any time they like.

Caneluna

So Gordon, should I do just as you say and write to the new owners and tell them that because HSBC said they would not be pursuing me for the debt that I will not pay them anything?

Gordon_Hose

Well, I would. Enclose a copy of the letter from HSBC

Caneluna

Thanks Gordon for your time: I have already sent the letter from HSBC to MKKR. They have written back to me with the above info (See post 6 in this thread).

Poosmate

I would write to HSBC's Debt Recovery Section asking for a copy of the letter (Notice of Assignment) that you didn't receive. I'd also ask them why they have sold on the debt when they have stated you wouldn't be pursued for it.

It could be that all unpaid debts hit a trigger at say 1 year and 3 months prior to becoming statue barred and are automatically sold to the highest bidder or something like that.

Maybe HSBC will be able to pull it back off MKKR - who knows?

How much are MKKR persuing you for and what payments are they expecting of you? I think worse case scenario is that you end up paying £1.50 per month again.

If what HSBC has done in selling on the debt is legal I would be careful in outrightly stating that you will not pay it. You have already acknowledged the debt with your exchange of letters and I'm not sure you could then threaten to take them to court because they dare to ask you to pay your debt. It would be a whole different kettle of fish if they were to try to take you to court if you have offered to pay something to them. If you offer them nothing but refusal to pay, how would that look in court?

Remember, they will have paid much less for the debt than the £1700 you owed so I think you should offer thema token £1 per month.

Poo