HSBC and the mother-in-laws loans

Sam_Duff

Hi everyone, I could really use some advice so figured this was the best place to come!
My mum-in-law is in financial strife and we're trying to help her to do the admin side of stuff like approaching the creditors etc and working out what she can afford to pay them all. When going thru everything it appears that HSBC not only have her current account, her mortgage and her life insurance but also have given her two separate loans with varying end dates that total nearly £900 in repayments per month. They lent her this when she was earning better money but even then the amounts she pays would've totalled half her monthly salary. Now that she earns less they still expect the same amounts, have stung her charges and cancelled her overdraft.
Should she stop her direct debit payments and include these amounts in a DMP and how does she (we) go about complaining about some serious bad advice????
She's also got a CCJ issued for a CC she had with Nationwide but the Court docs say HFC Bank LTD - does the CCJ still stand????
:mad: :mad:

CLAPTON

She needs to open a new bank account with a bank to whom she owes no money. If she has a CCJ then it may need to be a 'basic' account.
Then ensure all her income goes there rather then the HSBC otherwise HSBC can take what they like from her account due to the offsetting rules.

Without seeing a full SOA its impossible to know whether a DMP is appropriate for your MIL.

Sam_Duff

Thanks for that, I'll tell her to get it sorted out and quick! We've worked out that her loan repayments are more than her take home salary so they're bound to get their nice fat bank charges every month when she goes overdrawn. What a nice little earner that is!

CLAPTON

I would suggest you get your MIL to write out a full SOA (statement of affairs...full details of income, spending, debts, assets etc) and get her to post it on the debtfreewanabe board.
From what you say she will have to default on her debts but without seeing a SOA is not possible to give any real advice.
She need to start to take full responsibility for her financial situation if she is to sort it out. I'm afraid blaming the banks for lending her money is unlikely to be very helpful although once she has opened a new bank account she may want to reclaim bankd and CC charges.
If she has any PPI she may want to consider cancelling that.