HSBC.. Help Please!

Welshie28

Hi all,

Just wondering.. I bank with HSBC and my loan is also with this lender. I rang them 2 days ago to ask if they could put my loan payment on hold for 2 months just so I can get back on my feet, they agreed however said after the 2 month break give them a call and we can come to an arrangement as to whether I can keep paying as I normally do or go down another route, however the lovely man on the other end of the phone said that my 2 month break will show as arrears, due to this.. After the 2 month break, even if I start paying my loan as normal, is there any chance they can take money from my account to cover the arrears without my permission even though they've agreed to me having this break?

Any help would be much appreciated

sourcrates

Hi,

No they wouldn't normally use the right of set off in this situation.

If you have an arrangement in place with them, then that should be fine.
There are rules governing the use of set off, for instance they can't use it if it leaves you with less than a certain amount of money in your account.
As long as you have an agreed arrangement with them you should be ok.

National_Debtline

Hi Welshie28,


Whilst the bank may not use their right of set off in this instance, you can still change banks as a precaution. If you use this time to open a basic bank account with a new banking group and use that as your main current account then that will protect your income. In these situations, the question to ask yourself is if the bank did take the money - could you afford for them to do that? If the answer is no, then moving banks is the best answer.


Hopefully you will be able to get yourself back on track, but there is plenty of advice out there is you are struggling. Good luck,


Laura
@natdebtline

Welshie28

National_Debtline wrote: »

Hi Welshie28,


Whilst the bank may not use their right of set off in this instance, you can still banks as a precaution. If you use this time to open a basic bank account with a new banking group and use that as your main current account then that will protect your income. In these situations, the question to ask yourself is if the bank did take the money - could you afford for them to do that? If the answer is no, then moving banks is the best answer.


Hopefully you will be able to get yourself back on track, but there is plenty of advice out there is you are struggling. Good luck,


Laura
@natdebtline

Thanks Laura,
I have just recently opened a basic bank account with Barclays however haven't even used it yet. Did want to use it for my income however I also receive tax credits in to my hsbc account, how easy is it to change my bank details with DWP so that my tax credits go in to my new barclays account?

dancingfairy

Whether technically they can or can't I'd move my money to be on the safe side. Why risk it and then possibly have to go through the agro of trying to get it back?
I don't know but it should be possible to get the bank details changed over fairly easily surely?
Df

Welshie28

dancingfairy wrote: »

Whether technically they can or can't I'd move my money to be on the safe side. Why risk it and then possibly have to go through the agro of trying to get it back?
I don't know but it should be possible to get the bank details changed over fairly easily surely?
Df

Thank you, I'll call them tomorrow to change them over don't want to risk it.