threatening phone call from HSBC demanding complete balance of overdraught

AdRock

I have just had HSBC bank ring me at 8.50pm asking me if i can pay the full balance of my overdraught which is £1000.

I used to be with them for about 15 years until their bank charges got out of control and I switched bank. I transferred all my direct debits and my pay now goes into my new account.

About a 2-3 months they rang me to ask for the full balance of my account which was £1250 and of course there's now way I have that sort of money so I had an agreement with them that I would pay £120 a month which I have done. I've made 2 payments so far so I've kept to the agreement.

This woman from HSBC waffled on about that it could get passed over to debt collection or something and it would affect my credit.

I would like to know if they can do this as I have agreed to and kept to the agreement to pay £120 a month. I have nothing coming out of this account as I cancelled my debit card and I just want this account payed off and closed.

Any advice appreciated.

[Deleted User]

Yes they can do this as you have not kept within the original terms and conditions, the condition would have been repayment on demand. The FOS would support this theory.

Having said that I don't understand why the agreement is no longer valid. I would be asking the question why this is the case?

When you have the answer to the above only then can you look to resolve this problem.

fermi

Most ODs are repayable on demand, and presumably the £120 pcm was only an informal agreement?

If so then there is nothing stopping them defaulting the OD and passing to collections, but if you are clearing the OD in a reasonable time then you just have to make the point that it wouldn't be in anyone's interest for them to do so.

fermi

If you are having financial problems, then some of the parts about forbearance for those in difficulties may also apply.

http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

tiredmumof2

AdRock wrote: »

I have just had HSBC bank ring me at 8.50pm asking me if i can pay the full balance of my overdraught which is £1000.

I used to be with them for about 15 years until their bank charges got out of control and I switched bank. I transferred all my direct debits and my pay now goes into my new account.

About a 2-3 months they rang me to ask for the full balance of my account which was £1250 and of course there's now way I have that sort of money so I had an agreement with them that I would pay £120 a month which I have done. I've made 2 payments so far so I've kept to the agreement.

This woman from HSBC waffled on about that it could get passed over to debt collection or something and it would affect my credit.

I would like to know if they can do this as I have agreed to and kept to the agreement to pay £120 a month. I have nothing coming out of this account as I cancelled my debit card and I just want this account payed off and closed.

Any advice appreciated.

OMG, I'm starting to worry now as I'm in the same boat and I've just completed my DMP with CCCS and HSBC is one of my creditors (2 OD's totalling £2300). I hope they accept my DMP otherwise I'm sc*****d as I don't have that money!

Anyone else had experience of HSBC in a DMP?

Giraffeseeker

Don't panic - remember they cannot have what you haven't got.

Adrock - just reiterate to them that you cannot pay and have set up an arrangement to pay over 10 months and have already paid 2 months on time. Yes, they might pass you to collections, and yes, it might affect your credit report, but paying 10% off per month is a decent amount so I doubt they'll do that.

tiredmumof2 - I am on a DMP and had 2 x First Direct overdrafts plus one first direct bank loan in my DMP. They have been very easy to deal with. They reduced interest immediately and rolled all the amounts onto one of the overdraft accounts, so they just get one payment into that. On my credit file the loan and other overdraft show as "settled" and the third account is "satisfactory" with all payments shown as on time etc. First Direct is a division of HSBC, so I would expect them to treat customers in a similar fashion.

whitewing

I think it is completely ridiculous that overdrafts are repayable on demand. I don't understand how it can be deemed a fair term and condition? What am I missing?

DVardysShadow

whitewing wrote: »

I think it is completely ridiculous that overdrafts are repayable on demand. I don't understand how it can be deemed a fair term and condition? What am I missing?

You are missing the historical context. Overdrafts are a short term line of credit, originally given on the basis that the account holder had more money coming in later to cover over drawing, thus fulfilling the requirement that the overdraft is short term and effectively pre-empting repayment on demand. If your income does not put you into the black each month, then you should not be surprised to get a repayment demand.

Hatecreditors.com

assj wrote: »

Having said that I don't understand why the agreement is no longer valid. I would be asking the question why this is the case?

Who said the agreement was no longer valid? They've called in the overdraft as there has been no money (wages) paid in for over 3 months. I would expect any bank to do the same.

Piggybank83

god this just happened to me!!!! demanding £1500 back in two week - help!