HSBC overdraft and DMP

activist3

Hello All,
I have been on a DMP with CCCS which will end shortly as i have managed to get money together to settle the debts. However one thing has really frustrated me and i was looking for some advice. One of the Debts has been a HSBC overdraft which had a balance of £1415 going back to August 2009. I have been paying £27 a month off the account since then. This week i had a statement from then (i dont normally get statements) which shows a current balance of £1345. It turns out that HSBC have been adding £21 interest per month to the account meaning i have only been paying off approximately £6 per month.

I went into the branch today to enquire as to what had happened. They said they had liased with CCCS all the way back in October 2009 after receiving the offer of payment that they would accept the agreement only if they would accept the account converting to a Managed Loan. CCCS had refused this as they said it was a variable rate of interest. After this nothing happened and the account has technically just continued as it was.

I want to settle the remaining amount but had expected it to be around £300 and not £1345. Can anyone offer advice?

rising_from_the_ashes

First port of call should be to go back to CCCS - if they informed Halifax that it was being refused ... what did they do next? Did they check with Halifax what was happening? etc

activist3

I spoke to CCCS and they said they dont advise Managed Loans because of a variable interest, HSBC hadnt written to CCCS to officially refuse the offer as it had been done over the telephone. So payments just continued...

Lensman_2

I would say that reclaiming charges and interest is difficult on overdrafts.

Perhaps an official complaint to HSBC to state that you were obviously in financial difficulties and think that you were treated unfairly by them continuing to apply interest.

CCCS were spot on with the managed loan and I think you would be in a worse situation now if that had happened. (There are some threads on here with people's experience of those).

activist3

Lensman wrote: »

I would say that reclaiming charges and interest is difficult on overdrafts.

Perhaps an official complaint to HSBC to state that you were obviously in financial difficulties and think that you were treated unfairly by them continuing to apply interest.

CCCS were spot on with the managed loan and I think you would be in a worse situation now if that had happened. (There are some threads on here with people's experience of those).

Thanks for the advice, it is very frustrating!

Tixy

Are you planning to offer reduced full & final settlement? If so you might want to bring attention in the F&F letter to the fact that you have not received a statement since X date and that you were unaware than interest was being added to the debt and that your offer is based on the amount that would have been owed had they agreed to freeze interest at the time.

activist3

Tixy wrote: »

Are you planning to offer reduced full & final settlement? If so you might want to bring attention in the F&F letter to the fact that you have not received a statement since X date and that you were unaware than interest was being added to the debt and that your offer is based on the amount that would have been owed had they agreed to freeze interest at the time.

Thanks for that, i will try that