On DMP with CCCS but bank won't cancel a standing order for a loan!

Firsttimebuyer_4

My other half has a loan with HSBC and a loan with HSBC. She is now in the process of starting the DMP with CCCS and have cancelled all her direct debits for other creditors, and also opened a new bank account.

Problem is that HSBC will not let her cancel the standing order for her HSBC loan!!! (it's standing order, not direct debit) We tried online and were told that she was not allowed to do this!!

In the DMP Notification letter to HSBC we wrote that we wanted this cancelled but something tells me they wont!! If they take the money out it will take her further into her overdraft and also incur charges...and knowing HSBC they will probably take the money out, send her a letter saying she went over her overdraft but as a gesture they paid the loan installment but she'll have to pay £25 pound for going over her overdraft and £25 for them paying the standing order..

What do we do in this instance??

RAS

Bump Bump Bump

CCCS_Matthew

Hi Firstimebuyer,

The notification of DMP letter will request that they accept the proposal and stop any further interest or charges. If HSBC are happy to accept the proposal then they should take no further payments out of the HSBC account that will have no money in it.

If they don't accept the proposal for whatever reason, then there is the chance that they may still attempt to try and take the money out of the account via the standing order. If this does happen, they may force you to do overdrawn by taking more money than is in the account which may result in a charge. A point to note is that if they don't accept the plan, they are highly likely to put the account into default after 3 months and pass it on to a collection agency to deal with where you should incur no more charges.

So in short, if HSBC will not allow you to cancel the standing order - don't worry, once you've sent off the notification of DMP it's down to them to decide how they want to deal with their offer.

Hope this makes sense, you can always call on the number provided in the paperwork if you want someone to talk this over with you

Take care,
CCCS

Broken_hearted

They don't have to cancel it or agree to your DMP. After the three month it will go to a DCA who also don't have to accept your offer.

Lemon_Tree

doesn't a standing order mean that YOU control the money going out of your account. The Loan bit of HSBC cannot call the money. If you have requested HSBC to cancel the standing order aren't they in breach of some contract/ law. I guess not but it seems that this should be the case. As long as you sign a letter informing them to cancel a standing order how can they refuse to do so.

I know why they won't do it, being interested parties in the loan they don't want to not get paid and if they take you overdrawn/ past your limit then they can add additional charges to your account and create more debt for you to pay. If the loan had been with an independent party then they would have cancelled it not problem, it kinds of smacks that is should be in breach of some law.

Hope you manage to sort it out