Overdraft fees and interest charges - closed account sent to collection agency

mawk86

My partner has just been contacted by Caboot collection agency about an old HSBC account which was in debt and subsequently sold and sent to Court for CCJ action. At the time he had had to close his business due to decline in sales and unfortunately burried his head in the sand, and we weren’t aware of the Court process as he had moved house so didn’t receive any letters.
Caboot has provided a statement of his 2014 transactions which show monthly interest charges or around £25 and overdraft charges of £80 per month. Would we be able to try to claim some of this back on the grounds of financial hardship or does he just need to suck it up and get it all paid off?

[Deleted User]

No

But if he's in current hardship, he can approach his bank with regard to help with his current situation.

[Deleted User]

mawk86 wrote: »

Caboot has provided a statement of his 2014 transactions which show monthly interest charges or around £25 and overdraft charges of £80 per month. Would we be able to try to claim some of this back on the grounds of financial hardship

No.
2014 is five years ago.

Only current financial hardship will be considered and, even then, a refund of (some recent) charges is just one of several options available to the bank.

Historical bank charges have not been recoverable since the Banks won their court case a decade ago.

mawk86

He’s had to set up an agreement of £80 per month over two years to the debt collection agency and that is absolutely pushing his budget to the max, could that be considered current financial hardship by any chance?

[Deleted User]

mawk86 wrote: »

He’s had to set up an agreement of £80 per month over two years to the debt collection agency and that is absolutely pushing his budget to the max, could that be considered current financial hardship by any chance?

Hardly.

He's simply paying back what he already owes.

If £80 a month is more than he can reasonably afford, he should negotiate to pay less.

Historical bank charges have not been recoverable since the Banks won their court case a decade ago, so he won't ever be receiving a refund of charges from a closed account dating from 2014 I'm afraid.

Nasqueron

mawk86 wrote: »

He’s had to set up an agreement of £80 per month over two years to the debt collection agency and that is absolutely pushing his budget to the max, could that be considered current financial hardship by any chance?

Financial hardship cases apply to where you are now e.g. if you owed the bank the charges every month and were stuck in a cycle of charges, not being able to clear them and getting more charges etc. With this case the charges have been sold to a debt agency and the time for hardship is long gone though you can go back to the debt people and show a proper budget showing you can't afford that sum.


Post also on the debt free pages on here to get help saving money