restons hfc hsbc mfdp added high collection charges

benny213

HSBC HFC RESTONS
 I had a loan with  HFC bank, When I got into difficulties because of serious illness, it was  passed on to restons for collection, Restons added  between £4000  AND £5000  to the account, for collection charges, I have read that these charges were illegal  and should of been removed  by HSBC ,   I have been getting regular statements from HSBC with these charges  removed  so showing a reduced balance, For some reason which seems insane as I have never missed a payment and have paid over £10000.00 off this dept HSBC have sold the dept to a company called   MFDP, but they have now added  these charges  back onto the dept, What can I do  to  get these removed again, any advice would be appreciated,

sourcrates

What kind of loan was it, you say you have never missed a payment, so why was the account passed to Reston`s?

You need to ascertain what these "charges" were for, to do this a formal written complaint should be lodged with HSBC, as the incident happened under their watch.

A copy should also be sent to Reston`s.

Allow them 8 weeks to look into your complaint, you will then be able to escalate to the FOS if the solution they propose is not acceptable.

MFDP (never heard of them) should also be sent a copy as you need to know on what basis the charges were re-applied again.

benny213

I meant I  never missed a payment to restons,   HFC like others I contacted when I asked  for a small grace period  until  I could get back to work, immediately put me in default ,  two companies actually put me in default just for asking  and I had not missed any payments,  The irony is  that  if they had  given me the grace period  These debts would of been paid years ago,  destroying my credit rating caused my business to close,  they all seem to go the same way, CAB, advised me to go bankrupt, but I refused as I felt  because these debts were taken out in my name I had a duty to pay them,   

ManyWays

HSBC got into difficulties before with this, see https://www.fca.org.uk/news/press-releases/hsbc-agrees-extend-redress-scheme-customers-impacted-historical-debt-collection-practices

You could ask HSBC what charges were added and why so you can better argue a complaint. 

Queen24053

sourcrates said:

What kind of loan was it, you say you have never missed a payment, so why was the account passed to Reston`s?

You need to ascertain what these "charges" were for, to do this a formal written complaint should be lodged with HSBC, as the incident happened under their watch.

A copy should also be sent to Reston`s.

Allow them 8 weeks to look into your complaint, you will then be able to escalate to the FOS if the solution they propose is not acceptable.

MFDP (never heard of them) should also be sent a copy as you need to know on what basis the charges were re-applied again.

I was just passing-by and got interested in this thread because I too had a similar experience with Restons, HFC HSBC and MFDP.

MFDP is a private limited company incorporated on 11th July 2022 whose shareholders are also directors and operating officers of Restons Solicitors. Restons Solicitors is also a private limited company. The controlling shareholders and directors of MFDP are also the controlling shareholders of Restons solicitors. In other words, the operating directors of MFDP are the same directors in Restons solicitors.

I got a loan for £25,000 from HFC in 2004. In 2006 I had serious financial difficulties and failed to service this and other loans. The HFC loan balance in 2006 was £23,000. The matter was taken to court and unknown to me HFC/Restons added £5,900 as collection charges and another £6 000 as a lump sum interest charge although HFC had previously agreed to waive interest charges on my loan. The total loan balance was now just under £35,000 after these charges!!

In 2023, HSBC dubiously sold my debt, (£5,900 outstanding) to MFDP Limited. They probably paid nothing for it.  I became curious when I noticed similarities in the correspondence from MFDP and Restons solicitors. I checked the company register and discovered the complex shareholding structure, and that the two companies in fact operate from the same office building.

I just wonder why law firms are being allowed to con vulnerable clients in this way. Restons and MFDP are hiding behind the corporate vail of incorporation and manipulating client accounts to make profits. Ethics blows out of the window.