Final Demand - Hsbc

acheekymunky

I got disconnected so not sure if this has been sumbitted already but here it goes...


Due to unfortunate cirucmstances and a snowball effect I have found myself in a position where I have missed a couple of payments on all my debts and have sought advice from a debt management company who are apparently in 'negotiations' with my creditors.

I have today received a letter from HSBC a final demand for an overdraft I have with them for £1500.

The letter says YOU HAVE SEVEN DAYS TO REPAY IN FULL....ACTION WILL BE TAKEN ...THROUGH DEBT COLLECTIORS OR SOLICITORS IF YOU FAIL TO COMPLY....YOU MAY ALSO BE TAKEN TO COURT.

Well this has shocked me and scared the living day lights out of me!!

What do you think the next step i should take is to stop it going that far?!?!?

Thanks

itsnowtime

Hi,

Firstly try not to panic.... (I know easier said than done... :rolleyes: )

You've mentioned that you're already talking with a debt management company - just out of interest which one?

What I would suggest is that you tell the debt management company of this letter and they will advise you on what steps you will need to take.

Are HSBC aware that you are trying to establish a Debt Management Plan?

Well done for starting to deal with your debt.

sweetpeas_2

hiya cheeky,
firstly, i wouldnt worry too much about the letter. it basically looks more scary then it really is.
an overdraft is known as "not a priority debt", this means that really the worst that can happen with an over draft is the bank can take you to court, which you dont actually have to attend by the way, it will proceed as usual without you there, and the judge can decide an amount which you must pay back a month, the minimum being £2.50/wk.
there is no further a bank can take proceedings as far as recovering an overdraft from you. they cannot involve bailffs for example.

they generally think that the threat of court is enough to get people to pay in full. in actual fact there isnt anything much they can do against you.

my advice would be to call your bank and try to make some sort of arrangement to pay them back, and make an agreement outside of court of a suitable and affordable amount which they are happy to accept. tell them you will set up a standng order maybe for £x per month towards you overdraft.


hope this is of some help :rotfl:


noggin X

acheekymunky

Thank you for your advice.

I an panicking more as I live at home and my parents dont have any idea of how bad my financial situation is or that I am on a DMP with Gemstone. I have only been with them for one month so they are still in negotiations with all my creditors and have not as yet come to an arrangement with anyone.

I will phone Gemstone on Monday and see what they advise and then call HSBC.

I only work 10 hours a week at the moment after my self employment went a bit belly up so if I cant afford to pay HSBC £10 a month how on earth do they expect me to find £1500?! it all seems backwards to me....I have had a few conversations with my other creditors and there just doesnt seem to be enough empathy as to how people are in the situation to begin with. One even hung up on me the other day when I tried explaining!!!

I want to control my debts and start getting them paid off but I just feel like I have hit a brick wall as I physically do not have the money to do it and whilst waiting for the DMP to be put in place I am getting further and further in debt getting Final notices etc etc.

(

BettiePage

When did you claim your bank charges back from them? Maybe this is why they are asking for their money back now?

dawnybabes

I'm still new here and learning all the time.

Will Gemstone charge comms on the debt ? Could you change for Payplan/CCCS who are free ?

acheekymunky

Thanks for your replies.

A few people on the DMP thread have suggested I switch to CCCS or payplan etc which are free but im not sure if I am tied into going through Gemstone for 12 months?! Im also concerned that it will just lengthen the time for a negotiation if i switch over which will push me even further into debt!!

I claimed my charges back from HSBC in early May but in all honesty this money was withdrawn straight away to pay for my other minimum payments and I have not paid any money into the HSBC since then.

Having such a bad day...I feel sick and im scared about all these letters I keep getting!!