HSBC chasin overdraft repayment. HELP!

sweetpeas_2

hi guys, after a bit of advice.
just had a call from HSBC collections dept., wanting to make a payment plan for us to begin repaying our o/d. its currently at -1998 and the limit is -1500. we do not use this current account anymore and have no dd's coming out of there anymore.
she said if we do not put credit in the account at least every 30 days we will get a final demand for the whole amount, which we obviously dont have.

she pushed for a payment today, but i stood by my guns and didnt give in, and said that we couldnt pay anything in until 06/09/07. she then asked how much wed pay, and i said probably £10-£20. she then pushed for an exact amount, so i said 10/month was the most we could do.

we requested £965 back charges, inc interest, back in june, which obviously has been held up in the proceedings, and i told her if they put that back in wed be well under the limit and would then look at paying off a regular amount each month, but until then i was reluctant to pay much of anything into there.

i was the part about getting a final demand for the whole 1998 that put me abot a bit, cos we just dont have that amount of money lying about.

any advice guys? have i done the right thing offering such a small amount, as realistically it is all we have spare after dd's in the bank (my second income is cash and that is what we live off each week), or is it just going to get their backs up??


many thanks guys,

noggin

rog2

Hi noggin - Yes you have done the right thing by offering what you can afford.
Never comit yourself to more than you can reasonably afford, and don't allow yourself to be pressurised, or bullied, into a situation that you will only live to regret.

CCCS_Matthew

Hi there,

Don't worry about them asking for a final demand. A final demand or default nortice as it's also known is quite common for creditors to issue if you cannot negotiate a monthly payment that you are both happy with. You've done the right thing by sticking to the amount you feel you can afford, as giving them more than you can afford means that another area of your budget is going to suffer.

If you recieve a default notice, you do not have to pay the outstanding debt in full although that's what the paperwork might suggest. It is possible that HSBC could sell the debt on to a collection agency, which would allow you to offer a monthly payment to the debt as you have done in the past. Eventuall if they feel your payment is not signficant enough then they could apply for a County Court Judgement (CCJ) where you would be able to make an offer of payment through the court.

At the end of the day you can only pay what you can afford to your debts after covering your living costs, as clearly these are considered more important than debts as they have a greater affect on day to day living.

Hope this helps for the time being
CCCS

madmoney_2

hi noggin, if you look at my sig it says hsbc loan 500 paid - that took 3 years to pay off becoz at the time some other stuff was goin on in my life, and my overdraft of 500 spiralled to 1000 unagreed, i managed to get it back down to the agrred od limit of 500 by myself while on income supprt and no sooner had i done that they sent me a letter saying i had to pay off the 500 in full!! Not knowing much about these things at the time i agreed to take a loan out to cover it, 20 quid a month for 3 years!! so i know where u are coming from, n i just wanted to say i think u have done the right thing, i would have done that at the time if i had known how to handle them.. good luck xxx

Skinted_stodge

Hi,

I had this happen to me a few months ago- it was really upsetting, so I understand your situation. I stuck to my guns and said there was nothing i could do. I got several bullying letters along the way too!

I set up a standing order from my other (new) bank account and left it at that. I haven't any more problems since. I set it up for £20 a month because that was all i could afford. I am now looking into transferring this debt to a 0% interest balance transfer credit card, whether or not this is an option for you I couldnt hazard a guess, but I just wanted to say i did the same and its worked out ok for me!

the fact its still £1700 overdrawn suggests they just want a bit of money trickling in until i can tackle it!

Stodgex

sweetpeas_2

thank you, you guys, for all replying. youve been a massive reassurance. i wondered if id made a mistake and was going to annoy them as theyd think i was deliberately being clever. but at the same time, i didnt want to offer money i knew would not be there.

i was a bit put about by the call as ive never had anything like this before. despite our seemingly impossible financial situation we have always managed to pay all our bills and have never dropped into arrears, somehow. so i really was put on the spot by this woman.

thanks again you guys im really grateful.

nog xxx:o

rayday2

If you don't like phone calls change your number, I did and it did not cost me a penny I just told family and friends we were getting strange phone calls now I deal with all companies in writing.

madmoney_2

good idea rayday....might just do that
xxx

CatherineM_3

Hi
Being in a similar position with HSBC I know how you feel. I was 1330 overdrawn with an overdraft limit of 750. Unfortunately I was too late to stop my wages going in the bank on Wednesday and so the whole of my wages - 1320 got eaten up by HSBC....(On Tuesday (the day before my wages went it) they stuck £208 bank charges on my account.) After speaking to a really patronising, rude little man who informed me that I would be having another £108 charges slapped on my account on 14th September and who cancelled all my DD on the account and told me I now had to stay within my 750 limit or else I would be prosecuted for it and my account closed I posted on this forum for the first time and got lots of messages that made me feel better. I have got myself a new bank account and will be getting my wages paid in to the new account from 15th September. So HSBC will have to put up with what I can afford to pay them....I know this isnt much help to you now but it made me feel better knowing that I am not the only one. Just posting on this forum is proactive because it means that you want to make things better. Maybe we should start an "I hate HSBC" club.
Good luck x

madmoney_2

catherine i would definately join you, it has a nice ring to it "i hate HSBC Club" :rotfl:

rayday2

I have heard terrible things on here with HSBC which really makes me worry as my daft MIL swopped from Yorkshire Bank to them and she has a hobby of racking debt up!