Conned by HSBC can't find anyone else with the same story

Apples2

Offsetting is entirely normal, what was the Overdraft limit on your other account and did this exceed it?
Not that it matters too much as an Overdraft can be called in at any time.

Seems you tried to play the system and avoid repaying but came second. You should have closed that account when you dicided to avoid repaying.

Have a read about setting Off

http://www.moneysavingexpert.com/banking/setting-off

Other peoples stories

https://forums.moneysavingexpert.com/discussion/1530191

cod3

MrKIernan wrote: »

Hi all first post. Please be kind.

I took a loan out for 3k with HSBC on 20th may 2007,
I made a few payments them defaulted due to losing my home and job. And i CANCELLED THE DIECT DEBIT Been roaming around for 3/4 years on and off and finally met some and settled down and bought a house.

Did you have to declare the 3k debt on your mortgage application?

matttye

MrKIernan wrote: »

I'm not asking how to avoid the debt... Maybe I should have been more clear... They say I have 21 days to pay the outstanding amount or they will issue legal proceedings through the courts....

From what you said in a previous post, the debt isn't statute barred until the 20th July, even if they go by the time you actually last paid it. So, legal proceedings are still an option if you don't pay up within the time frame they've given you.

I have no idea about the legalities of what you've been told; i.e., that they've been paying it from a current account. Have you actually checked that this is the case and not just a ploy by the DCA to scare you into paying?

But this is all irrelevant. As you're not trying to avoid your debts, what you should do is set up a repayment plan now so that you can avoid legal proceedings before the 20th July, when the debt becomes statute barred!

fozmcfc

Apples2 wrote: »

Offsetting is entirely normal, what was the Overdraft limit on your other account and did this exceed it?
Not that it matters too much as an Overdraft can be called in at any time.

Seems you tried to play the system and avoid repaying but came second. You should have closed that account when you dicided to avoid repaying.

Have a read about setting Off

http://www.moneysavingexpert.com/banking/setting-off

Other peoples stories

https://forums.moneysavingexpert.com/discussion/1530191

MrKIernan let's cut to the chase, in a nutshell that is what has happened.

I think if you had remained in contact with them, you would have been ok to eventually get down to some sort of agreement and repayment, as it is, ignoring it has made it worse.

Ok so it has happened and it probably is a case of you will end up having to come to some sort of arrangement with them.

If I was you I would also post on the debt free wanabee section of the forums as to how best to take it forward.

You'll probably find that the bank, certainly up to a point were entitled to do what they did. But there may have been a time because of lack of contact with you, that they had to stop taking the repayments.

This is where you need the real advice and hopefully some of the debt free wanabee regulars can give you some pointers.

As for the PPI, any missold PPI will go towards the outstanding debt, so yes it may help, but I don't think you'll find it will clear the debt.

One thing is for sure, you can't just ignore it, otherwise it will just get worse and worse.

matttye

fozmcfc wrote: »

MrKIernan let's cut to the chase, in a nutshell that is what has happened.

I think if you had remained in contact with them, you would have been ok to eventually get down to some sort of agreement and repayment, as it is, ignoring it has made it worse.

Ok so it has happened and it probably is a case of you will end up having to come to some sort of arrangement with them.

If I was you I would also post on the debt free wanabee section of the forums as to how best to take it forward.

You'll probably find that the bank, certainly up to a point were entitled to do what they did. But there may have been a time because of lack of contact with you, that they had to stop taking the repayments.

This is where you need the real advice and hopefully some of the debt free wanabee regulars can give you some pointers.

As for the PPI, any missold PPI will go towards the outstanding debt, so yes it may help, but I don't think you'll find it will clear the debt.

One thing is for sure, you can't just ignore it, otherwise it will just get worse and worse.

That article talks about using the debtor's money to repay a debt, not the bank's own money, although the same principles may apply.

The bank hasn't actually taken any money from the OP, it has just taken its' own money and used the OP's overdraft to lower the loan, so the OP now owes an overdraft instead of a loan.

They've clearly done this to get around the limitations act. Quite sneaky if it's lawful!

lukieboy96

Why did you not check your account? If you had you would have realised that the direct debit was going out and could have stopped it beforehand.

keith1950

But I cancelled the direct debit...they set it up again without my knowledge ...

So are you saying that during all these years you didn't check this current account ?

Yes, this site is all about money saving and advice , not weaselling out of paying your debts !

You owe the money .... pay it !

Voyager2002

So let's get this straight...

You borrowed money from HSBC, and obviously promised that you would repay it. You acted in such a way that they were confident that you would indeed pay them back.

You then betrayed their confidence and failed to make the payments that you had promised to make. And now you are claiming that THEY have conned YOU.

theoretica

When did you last use the bank account? You could always try arguing it is statute barred if you haven't paid anything in for 6 years.

keith1950

I called them to say that the debt is statute barred. But they told me that on a technicality, it is not.

They told me what HSBC have done is paid the loan, each month from HSBC current account (causing it go overdrawn by 3.5k) Which paid the loan off in December 2012, which means the debt is now for the overdrawn amount and not the original loan.

You could always try arguing it is statute barred if you haven't paid anything in for 6 years.

Have you read the original post??