Recieved a collections notice on behalf of bank

AdRock

I have a serious problem that i need help with and don't know where to find the answers.

About February/March i get a letter from HSBC saying they want me to pay my £1250 overdraught off and i said that like most people I don't have that sort of money and said i would pay it off in installments which I have done. So far I have paid about £900 so i have £358 left to pay.

I told them at the time my partner is on maternity leave so we've only got half her income and I would pay what i can afford so have been paying on average £150 a month (one month i paid £270 which left me with no money for about 2 weeks for food etc).

Last night i got a letter from a debt collections agency becuase HSBC passed it on to them to get the balance. I had NO letter letter from HSBC saying if i didn't pay etc that they would do this and when i phoned HSBC last night, my account was closed and they couldn't tell me why i wasn't informed. The collections agency are only open between 9am and 5pm which is when i am in work so how do they expect me to speak to them.

I have been told by several people that becuase i've been making regular payments and especially as i've paid off £900 in 6 months that HSBC can't don what they've done......is this correct and what can i do about it?

SusieT

Hsbc can sell the account at any time, just WRITE and tell the debt collector that you are paying this back and will continue to do so. Don't talk to them on the phone as they will just try to bully you into paying more or giving your debit card details nd will help themselves to the balance. There should be ways to pay on the back of the letter so just change to there and you will be clear in a couple of months. Don't worry about scary sounding threats on the letters, they are just templates and if you have been paying and are this close to finishing they are not going to be taking any action.

JustinCredibleGillespie

Also I would take my custom elsewhere. HSBC seem very unhelpful.

JCG

xx

AdRock

They've already closed my account which is what i was going to do anyway but after being with them for 20 years I think the customer service they have provided is disgusting.

Another quick question tho.....it says on the letter i recieved from collections agency that it will show up on my credit report. Once this is paid off which will be by the end of next month, is this going to affect my credit score?

fermi

http://www.hsbc.co.uk/1/PA_esf-ca-app-content/content/uk/pdfs/en/General_Current_Accounts_Aprl1.pdf

33.8. We can end this framework contract with
you and close your account immediately in the
following situations:

33.8.1. if you have significantly broken any of
the Terms; or

............

............

33.8.6. if we have demanded that you repay an
overdrawn balance on your account to us and you
fail to do so.

Unfortunately, any informal arrangement to pay off the OD would still be a breach of those terms.

fermi

Oh, and what is the name of the collectors? If it is Metropolitan, then the debt has not been sold at all. They are in house collectors for HSBC.

Regards your credit files, it sounds likely that a default will have been recorded on them, which will impact your credit rating for 6 years, even when paid off.

AdRock

The collectors are Metrolpolitan and i thought it was strange when i tried to ring them as soon as i got the letter it went through to HSBC.

I phoned HSBC to complain and they told me that they sent a letter on 18th July asking me to settle the account but to no surprise, i never received that letter.

What is strange is that for the last few months they have been harassing me every month for payment even if i'd already made a payment then it all went quiet and i never heard from them recently....now i know why. What i don't understand is they can hassle me back then but they couldn't chase me up this time. It seems like as admin error on their behalf.

The person i spoke to at Metropolitan said it would be on my record for 6 years but how long does it affect your credit score once it's paid off? Does it affect it for 6 years?