HSBC/Wescot

allystar

My HSBC CC debt defaulted a couple of months ago and was passed to Wescot…I set up a standing order for £5 a month, which they have accepted and said it will be reviewed in 6 months.

i have only made 2 payments (debt is £4,500). Surprised to have received a letter from Wescot asking me to get in touch about a reduction offer they want to share…seems really quick.

I won’t contact as have nothing to offer right now, but genuinely didn’t expect this until defaults were much older.

is this normal?

ManyWays

I would ask what the reduction is, just out of curiosity.

Starfish75789

Mine defaulted in December and ive just had the same letter from Wescot. Ive not contacted them yet but curious to see what people are being offered. 

sourcrates

Wescott are just acting on behalf of the lender, they give them certain leeway to make settlement offers in the hope of a quick cash injection, instead of a lengthy payment plan.

Its not going to be a massive discount at this stage, but they hope to entice you into a settlement to clear the debt from their books.

DankVielen

allystar said:

My HSBC CC debt defaulted a couple of months ago and was passed to Wescot…I set up a standing order for £5 a month, which they have accepted and said it will be reviewed in 6 months.

i have only made 2 payments (debt is £4,500). Surprised to have received a letter from Wescot asking me to get in touch about a reduction offer they want to share…seems really quick.

I won’t contact as have nothing to offer right now, but genuinely didn’t expect this until defaults were much older.

is this normal?

With respect, I suspect you are talking about being in default of the payments due under the agreement rather than the debt having been formally defaulted. 

The latter means you get a letter saying:

The Agreement has been terminated

No more interest and charges will be applied

The debt has been sold to a Debt Consolidator (DC)

A letter from the DC is often enclosed and may even include the name of their Debt Manager (DM)

Whilst being in default of payments just means you missed one or more payments, in my experience Westcot are appointed before the debt is sold, basically a step further than inhouse collections although some lenders use Westcot as their collections department.

£5 a month is tolerated to allow for hard times, but it does show on your credit record, they allow it because the 6 year statute bar is kept at 6 years with every payment.  

If you actually plan to do a DMP then I suggest you plan it using steps I have outlined in my previous posts and that you check the DMP Sticky posts in this forum

allystar

Hi, it has formally defaulted, on my credit record and no longer shows it the app. Wescot are managing it and have written on behalf of HSBC.

i am only making small payments to help me build my emergency fund…for settlement further down the line. 

I’m not brave enough to do the no payments as you sometimes suggest.

tigergambit

allystar said:

Hi, it has formally defaulted, on my credit record and no longer shows it the app. Wescot are managing it and have written on behalf of HSBC.

i am only making small payments to help me build my emergency fund…for settlement further down the line. 

I’m not brave enough to do the no payments as you sometimes suggest.

I think this is fine as a strategy. I'm doing similar with a view to cutting them off when I retire in a few years and playing hardball on an F&F at that point.

I suspect that the letter you have received is just a computer generated ploy to get you to contact them. Just don't bother, it's pointless.