Lenders not providing assistance when income affected by coronavirus

beelzebomb

FCA and Govt guidelines say that lenders should look to assist those self-employed who have had their incomes adversely affected by the virus - mortgage companies have been to told to give 3-month payment breaks (now extended) and many other lenders are doing the same - but what legislation or support is there for those struggling who are not managing to get responses from their lenders? Time is surely of the essence here!
My income dropped about 80% in March/April. 
Yet I (as I've posted elsewhere) have had nothing from my mortgage co HSBC, despite informing them of all the relevant details in March/April.
I've now been told that one of my credit card companies will close my account after it's paid off, after eventually agreeing a reduced payment package - Again, I informed them in April of all relevant details and a temporary inability to pay. The result (as with HSBC) was to be ignored and then having a default notice slapped on my account for good measure!
So, how on earth do those affected like me complain? Where do we go for help? What on earth can we do when companies are not complying with Govt advice and treating the self-employed, whose incomes have affected by coronavirus, simply as non-payers?

bradders1983

Credit card providers can close accounts whenever they like, to minimise their risk going forward. Clearly they see you as a risk.

beelzebomb

Not a great answer. We are not talking about normal circumstances here though are we - we are in the midst of a pandemic and I am one of those full-time self-employed who has been badly affected. I've a good payment record with this company right up until the virus hit. FCA and Govt guidelines are clear: be lenient, provide assistance where you can and for mortgage lenders, provide a payment break where it's relevant. Yet I cannot see any way of getting the necessary quick support when lenders are not being helpful. 

bradders1983

Its the truth though. You applied for a holiday at the earliest opportunity and therefore the bank will see you as a risk as you had no savings to tide you over, and therefore are mitigating their risk by closing your card for further spending. 

You may not like this answer but that will be their point of view.

Grumpy_chap

Why have you started two threads asking pretty much the same thing?  One question clearly outlining your position and concerns / queries would have been better.

[Deleted User]

In terms of your mortgage you say you have "informed" them, did you complete the form from guide below or have you called or emailed?
https://www.hsbc.co.uk/guides/borrowing/what-is-a-payment-holiday/
With the form it happens automatically, with email or phone it has to be manually processed.

beelzebomb

bradders1983 said:

Its the truth though. You applied for a holiday at the earliest opportunity and therefore the bank will see you as a risk as you had no savings to tide you over, and therefore are mitigating their risk by closing your card for further spending. 

You may not like this answer but that will be their point of view.

I don't particularly agree with you: people with enough money in the bank do not surely apply for credit cards in the first place as it's more economical to not pay something back with interest. But this is an aside; I'm asking what support there is for people in my position, of which there are many - I don't want to pointlessly bang heads with armchair critics telling me how bad a risk I am etc etc - this is a HELP forum; it's stressful enough having my income fall through the floor and work drying up as it is thanks. Things were fine and dandy before March.

bradders1983

beelzebomb said:

bradders1983 said:

Its the truth though. You applied for a holiday at the earliest opportunity and therefore the bank will see you as a risk as you had no savings to tide you over, and therefore are mitigating their risk by closing your card for further spending. 

You may not like this answer but that will be their point of view.

I don't particularly agree with you: people with enough money in the bank do not surely apply for credit cards in the first place as it's more economical to not pay something back with interest. But this is an aside; I'm asking what support there is for people in my position, of which there are many - I don't want to pointlessly bang heads with armchair critics telling me how bad a risk I am etc etc - this is a HELP forum; it's stressful enough having my income fall through the floor and work drying up as it is thanks. Things were fine and dandy before March.

I have plenty of savings yet I have two credit cards which I pay the balance off every month, so speak for yourself.

beelzebomb

MadMattUK said:

In terms of your mortgage you say you have "informed" them, did you complete the form from guide below or have you called or emailed?
https://www.hsbc.co.uk/guides/borrowing/what-is-a-payment-holiday/
With the form it happens automatically, with email or phone it has to be manually processed.

Hi, yes I have now done this - but I only have a mortgage with HSBC, no bank account as such, and I've never had any online access to my account (despite it being 2020!) - I firstly emailed them, then wrote a letter - I had no idea that link existed till seeing it on this forum recently. But at no point did HSBC point me in the direction of the correct procedure, they simply haven't acknowledged my actual request in any way - only (via email) that I have now raised a complaint.

beelzebomb

bradders1983 said:

beelzebomb said:

I have plenty of savings yet I have two credit cards which I pay the balance off every month, so speak for yourself.

Great! Good for you! Very helpful. Though, argue/disagree/point-score on someone else's thread please - I want this to be helpful. Not just for me, but for anyone else searching for an answer to this issue. 

dunstonh

I've now been told that one of my credit card companies will close my account after it's paid off, after eventually agreeing a reduced payment package - Again, I informed them in April of all relevant details and a temporary inability to pay. The result (as with HSBC) was to be ignored and then having a default notice slapped on my account for good measure!

If it was always going to default then that is unchanged by the CV assistance.  You say "eventually".  So, that indicates that it has been going on for some time and pre-dates CV.    And you indicate "one of your credit card companies" which suggests you hold multiple cards.  Were you borrowing less than 25%,50%, 75% or up to limit on these cards pre-CV?  This is looking for trend on whether you were already a high risk before this started.

I am one of those full-time self-employed who has been badly affected. I've a good payment record with this company right up until the virus hit.

Your wording doesnt suggest that. Perhaps your wording is giving the wrong impression.

I don't want to pointlessly bang heads with armchair critics telling me how bad a risk I am etc etc - this is a HELP forum; i

Remaining ignorant of the reasons why is not a good idea. It helps to understand how you got to this situation.  And can also lead to a resolution in some cases.  Ignorance is not always bliss.  Knowledge and understanding can take away some of the frustration.

Edit, your second thread contains different information

https://forums.moneysavingexpert.com/discussion/6148440/problems-getting-payment-holidays-from-certain-lenders#latest

On that thread, you appear to be in arrears with what appears to be a secured second charge loan.  So, it looks like you had issues pre CV