overdraft and credit card

wanttobethrifty

This is First Direct response to my friends complaint regarding both these debts being combined. In my opinion they have not answered the complaint, and no cca request was done for the credit card. Any advice on how to continue (see attachment)

sourcrates

I refer you to my previous post, banks can basically do as they wish, and they have chosen to combine the two accounts.

Further down the line this will make enforceability a bit of an issue, for the reasons I explained previously.

There is no point continuing with this, as HSBC have done nothing wrong.

When the debt is sold, and your friend asks for evidence, whoever buys the debt will have a problem complying.

Until that day arrives, its up to your friend what course of action they wish to take.

richardadc

Sourcrates may be right that it may be difficult for the debt to be proved when sold on.  HSBC combined my debts while it was being managed by another debt management company.  I did ask the debt management company for proof of this and HSBC posted me a 300 odd pages listing every transaction i had made on the accounts since opening with an explanation of how they were combined.  I ended up settling the £20K debt for £2K (10%) so it never got to the stage of being sold on.

I'd probably wait a while as see if your friend could get to a similar offer with them just to save the hassle of having to deal with any future debt company.  I think it it went to court the different terms attached to an overdraft and a credit card account could make it difficult to enforce.

fatbelly

richardadc said:

Sourcrates may be right that it may be difficult for the debt to be proved when sold on.  HSBC combined my debts while it was being managed by another debt management company.  I did ask the debt management company for proof of this and HSBC posted me a 300 odd pages listing every transaction i had made on the accounts since opening with an explanation of how they were combined.  I ended up settling the £20K debt for £2K (10%) so it never got to the stage of being sold on.

I'd probably wait a while as see if your friend could get to a similar offer with them just to save the hassle of having to deal with any future debt company.  I think it it went to court the different terms attached to an overdraft and a credit card account could make it difficult to enforce.

That was a very good deal. It's unusual to settle at 10% because that's about the level that they could get commercially by selling the debt on. I wonder if that wasn't actually a debt management company but a debt buyer and they decided to cut their losses rather than risk court action on  this, with all the expenses that would entail.