HSBC refused repayment plan because I earn too much

Pedrosica

Hi everyone

I have an unauthorised overdraft with HSBC of £220.

I started my own company around 18 months ago and have earnt almost nothing in that time.

My wife is in a similar position.

We have lived off credit cards, family loans and benefits.

Both businesses are now turn a corner and becoming profitable. (My wife's very much so and mine to a lesser degree).

Even so our actual take home money is still pretty variable. My wife earnt £5k last month but may earn much less this month.

I told HSBC about my situation. I suggested that all DDs be removed from that account to my joint account. And that I essentially freeze the account with the unauthorised overdraft sync set up a payment plan for £30 a month with a view to over paying in months where my income was high.
Initially they refused as they said my income couldn't be guaranteed as I was self employed. (They refused to even do the questionnaire to see whether I was eligible).

I talked them into doing it if my wife's income was also included. They told me the purpose of the check was to see whether I could afford the repayments (of £30 a month).

Given that they wouldn't accept a plan when I may earn nothing I overstated my joint earnings a little (£3k a month). This is actually a very possible scenario but it could also be less I just didn't want them to reject me for wanting too little.

Anyway after doing the check they told me my income was too high to accept a payment plan and that I had to pay the full amount in 40 days or I would be considered to have defaulted.

I cannot pay the sum now. I may be able to in 40 days but cannot guarantee it.

Any advice? It seems entirely unreasonable on their behalf.

boo_star

Sounds like you shot yourself in the foot by lying about your income.

It’s hard to believe that someone earning 36k a year can only pay off £30 a month, hence their response.

Edit: As to advice, find the money in 40 days. I don’t think they’ll believe you if you phone back and tell them you overstated your income anyway.

KeithP

Pedrosica, there is no consumer rights issue here.

As you have now posted on the Loans board, wait patiently for responses on that thread.

Pedrosica

That's helpful.

I wasn't lying. They told me I couldn't get a repayment plan without stating a guaranteed income so I had to give them something. The projections are genuine but will also fluctuate.

What I don't want to do is commit to a monthly repayment and then get no clients one month and be scupoerrd.

I also have other debts.

Thanks anyway.

Pedrosica

Thanks for responding and apologies for posting on the wrong forum

mije1983

As above, you have definitely not helped your case by potentially lying about your income.

Look at it from their point of view. 1% of your pay as a replayment plan? They may think you are taking the mick to be honest. Especially as you said your earnings were £3000 a month and the debt is only £220.


They probably think you are being entirely unreasonable.


I was going to suggest you posted in the money section of the forum, but I've just noticed you have already done that. Hopefully they will have some good advice for you.

boo_star

Pedrosica wrote: »

That's helpful.

I wasn't lying. They told me I couldn't get a repayment plan without stating a guaranteed income so I had to give them something. The projections are genuine but will also fluctuate.

What I don't want to do is commit to a monthly repayment and then get no clients one month and be scupoerrd.

I also have other debts.

Thanks anyway.

Whatever you want to call it you gave them a figure based on a possible income without realising that the figure was far too high for them to accept a payment plan for what is a relatively trivial amount of money.

As I said, despite the best of intentions you’ve shot yourself in the foot and I don’t think they’ll believe you if you call back and say you overstated your income.

Which leaves paying within 40 days as your only option.

Pedrosica

Perhaps but what was I supposed to do. When I told them I had no guaranteed income they wouldn't give me a plan and had to pay in 40 days or default, when I gave them a best case scenario income it's too high?

I know it doesn't really matter now but in hindsight what should I have done???

boo_star

Pedrosica wrote: »

Perhaps but what was I supposed to do. When I told them I had no guaranteed income they wouldn't give me a plan and had to pay in 40 days or default, when I gave them a best case scenario income it's too high?

I know it doesn't really matter now but in hindsight what should I have done???

Told the truth and accepted their answer I imagine.

You’re in an unfortunate situation when you’re self employed when it comes to credit/debts (I know, I’m self employed too) and it’s just something you have to accept.

Pedrosica

I can see I'm not really getting my point across or I'm missing something.

I don't mean that passively aggressively or sarcastically. I rally don't.

What's frustrating is that I have told the truth. Both that I have no guaranteed income. (It could be £9) and that the best case scenario is £3k a month. If the best case scenario arises I'll be fine, if the worst case scenario arises I'm in trouble.

The bank no this but are not prepared to give me any kind of breathing space. I'm genuinely baffled but hey ho

boo_star

Pedrosica wrote: »

I can see I'm not really getting my point across or I'm missing something.

I don't mean that passively aggressively or sarcastically. I rally don't.

What's frustrating is that I have told the truth. Both that I have no guaranteed income. (It could be £9) and that the best case scenario is £3k a month. If the best case scenario arises I'll be fine, if the worst case scenario arises I'm in trouble.

The bank no this but are not prepared to give me any kind of breathing space. I'm genuinely baffled but hey ho

You shouldn’t have given your best case scenario, you should have given something in between that and the low end.

As I said, you shot yourself in the foot by doing that.