HSBC sends debt warnings but have debt management

Paul_1977

deleted...

National_Debtline

Hi Paul


Is your relative paying a fee to this debt management company? If so, I would strongly advise switching to a free provider, if not negotiating himself. The fact that they are sending payments through to HSBC won't necessarily deny HSBC the right to take further action.


Is he living in mortgaged or rented accommodation? Either way I'm not sure why the HSBC letters would put him at risk of losing his home?


Have HSBC ever taken him to court over these (presumably unsecured) debts? If not, I'm not sure where the threat of bailiffs comes from, as they can only be instructed by a court once HSBC have a judgment (CCJ) against your relative for their debt.


I'm guessing that you may be acting on the info your relative has given you and when this happens things can get lost in translation, despite everyone's best intentions. If there is any way you can get the actual wording of the letter from him and share it here, we should be able to tell you exactly what is going on.


Alternatively, he may well benefit from contacting one of the free advice charities who can cover all of the above queries and more besides.


Dennis
@natdebtline

sourcrates

An extremely eloquent responce from Dennis above, and straight to the point.
HSBC can't just "send the bailiffs", that's not how it works, they would first need to take your relative to court, and obtain a CCJ against them, your relative would then have to default on those agreed payments, it's at this point, that a bailiff "could" be used.

Creditors will still send demands for payment, even if you are paying them something, they are mostly computer generated, and so do not take into account any payment arrangement you may have.

I would certainly advise him to stop using a fee taking debt management company, and use one of the free debt charities instead, using these 3rd party DMC's is inherrantly risky, as they can disappear overnight, taking all your cash with them, some even with hold payment to creditors in order to benefit from extra interest generated, all in all, they should be avoided like the plague.

Paul_1977

Hi Dennis,

Thanks for the reply.

The letter has the heading "final demand"

It says they have issued a default notice and that they want the full amount paid within 18 days or they will get in a debt agency to start legal proceedings.

I have seen on TV when people just turn up to evict you without notice, I was worried they could do this to him.

He is in a private rented property. A one bedroom flat.

HSBC has never taken him to court.

The company are paying as it shows on the statement. I am not sure if he is paying them anything. Sorry I am not even sure if its a company, I will try and find out the name off him.

Thanks.

sourcrates

Ah, that's just a standard default notice, they are required to send by law.

Absolutely nothing to worry about, standard procedure.

I bet it says "may start legal proceedings" not will.

Paul_1977

Yes, it does say that.

Thank you for your help I will let him know.

mwarby

Paul_1977 wrote: »

Hi Dennis,

I have seen on TV when people just turn up to evict you without notice, I was worried they could do this to him.

He is in a private rented property. A one bedroom flat.

A risk if he gets behind on rent, but little point in HSBC paying thousands for high court enforcement, they're limited in what they can repo and probably could even repo enough for thier fee. If he has porsche on drive and or antique furniture might be different

Jvic28

Agree with all the above. I must have received hundreds of these letters in the 7 years I have been on my DMP and have never been taken to court or had bailiffs visit.

I also agree that he needs to ensure he's not paying a fee for his debt management plan. Every penny he is spending needs to be going to his creditors. I have been with Stepchange since the beginning so no fees and all my payments go entirely to those I owe.

chanz4

so did it even mention the word bailiff? It sounds like just a legal default notice

andyfromotley

Do not miss the most important point in replies to this post. NEVER pay a company to manage your debts. This service is available free (and probably better) from the Debt Charities. Or many people manage it themselves. These companies exist only to make money of those already deep in debt!!