HSBC/Payplan trouble... advice please

roadrunner_3

After a long break trying to get a grip on my dire financial situation, the tide finally seems to be turning. I have entered into a DMP with Payplan, which at the moment seems to be a better option than an IVA or bankruptcy (though I may consider an IVA). While almost all of my creditors have accepted the offers made to them HSBC loan & card are still not going with the plan, and are threatening the usual enforced debt collection/ court action to recover the amount outstanding. I have tried contacting payplan myself but to no avail. Is there anything thing else I can try? The terms set out by HSBC are just not going to be possible if I am to honour the agreement I have with the other creditors & not fall back into the black hole :mad: . Not sure where I should turn.
Advice gratefully received

mattp_3

If HSBC are not prepared to accept the pro-rata payments that are on offer via Payplan then they will eventually pass the debt to a collection agency (usually Metropolitan Collections in the case of HSBC) who are offer more prepared to accept reduced payments.

Stick to your guns!

If you offer them anymore then they know you will crack under pressure and they will continue to harrass you each month for more and more money.

Their threats are often made to scare people into increasing their payments. The reality is that they know you will be paying as much as they would get via a CCJ anyway so they are just trying their luck!

It does sound ridiculous as HSBC are one of the first companies that started making contributions so that Payplan could set up free DMPs! So you would think they would accept a fee-free, pro-rata DMP.

Try to stick it out a little longer and things should settle down, or be passed to another company. The worst thing that can happen is they will issue a CCJ, but as you will have defaults on all your accounts anyway, this isnt the end of the world. It will mean that they have to freeze the interest and charges and will be forced to accept pro-rata payments via the debt management company!

So keep the monthly payments going for a couple more months and see what happens.

Nicky_3

As Payplan are looking after your finances, leave it in their hands to deal with HSBC. You will probably end up with a letter stating the account has been passed onto a collections dept. As soon as you receive that, send that to Payplan, and they will resend your proposals to them.

I know its all a bit daunting, but it is all common practice and nothing to worry about.

Banks and other high street lenders are very restricted on what they can accept as a reduced payment, and if the offer is below the percentage they are allowed to accept, they then have an obligation to run through the general collection proceedures, i.e. letters/phone calls etc, but eventually they will pass it on.

Good luck.

mancitychick

Also kept sending your payment, even though they say it is not enough. As this shows willing on you part if court action is taken further down the line.

Conrad

Not sure if this helps, but my sister in law recently went bankcrupt oweing £30k on cc and loan to HSBC. Her husband (my youngest brother) saw how completely easy it was for her so a couple of months later (June 05) did the same, also oweing predominantely to HSBC. He said his case was also a walk in the park even though he earns £27000 pa.

They are happy once again and arent bothered that they wont be able to obtain cheap credit for a few years - no bad thing given thier track record with debt!
The bankcruptcy will be discharged in 1 year.

They cant beleive how there lot has changed in a few months, no more money worries. They are now saving hundreds per month and aim to buy a home in 5 years. A sub - prime mortgage in 5 years wont be that much more than a prime one, and in any event they will transfer to prime 3 years after that.

Sorry if Ive got the wrong end of the stick.

Conrad.

roadrunner_3

Unfortunately Bankruptcy is not really a great option for me & would rather not go down that route if at all possible.
Thanks for all the other advice... looks like the best thing to do is to sit tight & wait for HSBC to hand over the debt to 3rd party. Hopefully they will be more willing to accept what I have proposed.
Are 3rd party collectors more likely to accept F&F payments even after you have made reduce offers in the form of a DMP?

Xbigman

Whatever you do don't tell them you are just waiting for them to give up and pass it on, companies like this take that statement quite badly. Simply keep politely telling them there is no more money and keep payplan paid up on time.
Regards



X

poppy52

Ignore them - they are just trying it on. Some creditors will do this initially. All you need to do is make your payments to Payplan and not get conned into paying anyone anything extra. Send the letters to Payplan, and if HSBC phone you just keep repeating that you are with Payplan. Eventually they will settle down. After about 6 months of being 'settled', however, be prepared for creditors to start contacting you again and moaning! This is just to check that you suddenly haven't become a millionaire and forgotten to tell them.

dfp1982

hi, i had a loan with hsbc and they were not understanding of my circumstances and my debt with them eventually went to metropoliton collections. im now with payplan on a dmp and metroploiton have accepted my offer of payment.
hope this helps a little to releive any anxietys.

in_debt_again_but_dealing_with_it

Have just entered a dmp with cccs and all my debt is with hsbc, they are phoning morning noon and night (even today!) but I have caller display and am simply not answering their calls. Have kept them fully informed by letter and sent goodwill payments for this month (dmp start 1st March) all cashed. In my experience all they want is for me to consolidate (AGAIN!!), you know the story, reduced payment to match the dmp but we still get the extra interest and have you at our mercy for the next zillion years!! Please don't let them pressure you, you know what you can afford, payplan know what you can afford - hsbc (or 3rd party) will have to accept what you can afford!

lushbu246

Nicky wrote: »

As Payplan are looking after your finances, leave it in their hands to deal with HSBC. You will probably end up with a letter stating the account has been passed onto a collections dept. As soon as you receive that, send that to Payplan, and they will resend your proposals to them.

I know its all a bit daunting, but it is all common practice and nothing to worry about.

Banks and other high street lenders are very restricted on what they can accept as a reduced payment, and if the offer is below the percentage they are allowed to accept, they then have an obligation to run through the general collection proceedures, i.e. letters/phone calls etc, but eventually they will pass it on.

Good luck.

im going thru same thing as the poster and your post made me feel much better as the idea of your debt going to debt collector fills me with dread that people will come round and start taking my poccessions. its all very scary but u make it sound less so : )