Dro & HSBC account frozen

Chelseawows

Hi there, I had my DRO accepted in June, and since then have had a letter from HSBC saying they would freeze my bank account as it was included in my debts. However, I haven't managed to change my pay into a different bank account and have just spoken to payroll saying they can't reverse it. Have I lost my money forever? Will they use it towards my debt even though they know about my DRO arrangement? Please help, thanks.

cheesedoffwithdebt

Sadly you should have been advised to redirect your pay for this reason, that the bank can freeze the account. They can't take away money you need to live however but you need proper advice either from e.g. Cab or step change , very quickly !

National_Debtline

Hi Chelseawows


I'm sorry to hear what has happened but HSBC will not be allowed to keep the payment from your employer as they can no longer collect the debt once a DRO has been made. You will need to contact them and ask them if they will be sending the payment back to your employer, or if they could pay it directly to you.


You need to open up a new bank account as soon as you can, if you ask for a basic account you should have no problems doing this. However if this takes some time you may be able to arrange for your wages to be paid into a trusted friend or family member's bank account in the meantime.


As there will be a delay in being paid have you got anyone who can help support you? If you will struggle with the basics, like your food shopping, you can search for your closest food bank here https://www.trusselltrust.org/get-help/find-a-foodbank/. Your local council may also have a welfare assistance scheme if you are in an emergency situation, you'll need to contact them directly for more details.


I hope you can get it all resolved quickly.


Susie
@natdebtline

Chelseawows

Thank you both. I had updated my new bank details with my employer so it shouldnt happen again. I rang HSBC this morning and they said they will bounce the money back to my employer - hopefully it won't take long to process and send to my new account. Such a pain but thankfully sorted!

Chelseawows

So I still haven't received my pay. HSBC seem to have taken it to their debt collection team even though they know all about my DRO and closed my account. I have spent over an hour on the phone (mostly on hold) to them and they are apparently going to ring me back. I don't feel very hopeful about it. If anyone has any advice, I would love to hear it.

20aday

Hello there,

Am very sorry to hear about your issue. Unfortunately my Mum has recently entered into an IVA and had a similar issue with her employer and Barclays Bank.

All she could do was to keep chasing Barclays up until they'd reversed the payment; I don't know who is sorting out your IVA for you but I'd get in touch with them too and see if they can get on at HSBC as well?