HSBC Loan DMP

DebtSlave

Hi, I've been in a DMP for over 7 years and up until now my HSBC managed loan has been payed by standing order from my HSBC current account (I kept it open solely for that purpose). Each month, Payplan would pay the money into the account and then a few days later the SO would pay the loan. For some reason at this most recent review HSBC have told Payplan there's no reason to pay into the account and to just pay the loan directly (don't know why they didn't do this in the first place) so I rang HSBC last night to cancel the SO. How ANYONE can bank with HSBC is beyond me!! I can't understand a word they say on the phone and they can't understand me either. Anyway, the lady said the SO had already been cancelled and she had to inform me that as my loan was now being paid via Payplan I would receive some letter in 180 days and my credit rating will be affected. Does anyone know what this refers to? They were pretty much the only words I could make out. My payments are now 50% higher than the original loan agreement and I've never missed a payment. Thanks!

sourcrates

They are just informing you of there legal obligations to you, how much do you owe them ?
I am assuming you do know that a DMP is an informal agreement between you are your creditors, there is no obligation to pay what payplan, or HSBC tell you to pay.

You should just be paying what you can afford to pay.
Seven years a long time, how much longer do you have left ?

DebtSlave

Thanks. I owe them £1500 now, from £6500. If I'd stuck to the original payment it was due to finish in Jan 2017 but is currently due to finish May 2016.

The loan is on my credit report but is all green as all payments have been made on time. The lady said it as though I'd only just set up the DMP, I thought it was odd.

sourcrates

They follow a script on the phone, it may or may not be relevant to your situation.
You have done well with your credit file as usually defaults are par for the course.

DebtSlave

Ok thanks. I did have defaults but they've dropped off now, they weren't with HSBC though.

Sazzie23

I think I'd confirm in writing what you understood from the phone call and what is happening to repay, if they do default you know I'd ask them to backdate it .

These call centre scripts are inadequate when your situation is different.

DebtSlave

Thanks. Can they default it if I've always paid it?

Sazzie23

DebtSlave wrote: »

Thanks. Can they default it if I've always paid it?

If the original contracted amount is not being paid, they can default you. Even if the account is handed to a DCA if the original contracted amount is not being paid, they can and generally will, default it. But defaults are not as scary as they seem and don't usually result in any further action being taken by creditor or DCA as long as an agreed amount is being paid.

Hope this is understandable I felt it rambled a bit, sorry.