Hsbc Debt!! Help?!?!?!?

jax18_2

Hi ,
I'm having trouble with the central debt recovery unit.
What happened was . . . . i got sick of bank charges with HSBC so set up a halifax account but like an idiot didnt officially close the HSBC account i just left it as it was and didnt think there'd be any problem with it.However i had forgotten to cancel a couple of minor (or so i thought) direct debits e.g £5 every month to my childs saving plan obviously there was nothing in the account so they couldnt get there money but as HSBC do they charged me for this and kept on charging me every time they attempted to take the money.God only knows how many times this has happened but the letter i recieved says i owe them £1802 which has left me gobsmacked to say the least.Prior to this letter i have recieved one other but at this point the total was still over a thousand and I panicked and hoped it was an admin error and prayed it would go away.No such luck.90% of the amount their demanding must be purely bank charges , i cant pay it.I cant believe HSBC have left it so long before contacting me.if they'd got in touch n said you owe a couple of hundred then fair enough its my own fault for forgetting the debits but 1800 is crazy.Does anyone know what i can do ? where i stand with this? do i have any option but to pay it? please help!!!!!

Merlot

I a afraid you do need to pay it, phone the HSBC and arrange a repayment plan with them.

Once you have done that, you can put in to reclaim your bank charges, bearing in mind that there is a test case and claims are on hold at the moment, you could get some of that money back, but it could take months if not a year or so. Do speak to HSBC tomorrow and come to some kind of arrangement, its not going to go away and the debt will increase if you don't. Can you afford to repay something?

Make sure all direct debit/standing orders are now cancelled with the bank, and DO NOT EVER DEPOSIT MONEY INTO ANOTHER BANK WHICH IS ASSOCIATED WITH HSBC, LIKE FIRST DIRECT, BECAUSE THEY CAN LEGALLY TAKE THE MONEY FROM THAT BANK ACCOUNT TO REPAY HSBC.

Merlot.x.

Ta2dUK

Have you tried calling the bank to see if there's anything they can do for you?

I work for a bank, and when this happens to one of our customers, we use discretion and can normally refund a huge portion of the charges back as a gesture of good will (although I've never seen that we've allowed such a huge amount of charges).

From there, as the other poster suggested, you can set up a payment plan and look to claim back any other charges after the test case has been completed.

If you contact the bank directly, either in a branch or over the telephone, I think you'd be surprised at how compassionate they can be. Afterall, you're only human and mistakes happen.

Good luck!

Arwen

Might also be worth going to see a Money Advisor or Trading Standards Officer as most of it is Bank Charges,I know that the test case is going through the courts but if letters are still written disputing the amount of charges,if they do take you to court,a magistrate may look at a "fair and reasonable test", especially if the bank have refused to negotiate with you and you have tried.

So if they take you to court or try to,you could dispute the amount.Magistrates may look at your case favourably,despite the test case, and sometimes they seem to do what they like,which MAY work in your favour.

Put it this way,if you can't pay it ,they are going to have to take you to court to recover their debt anyway.You trying to negotiate is showing that you are trying to work things out.If they refuse to play ball,you havent lost anything, and it may just work in your favour,

payingfornowt

I think if you call them, remain polite and explain the situation. I think they will probably reduce it.

I was in a similar position with them and spoke to my local manager, I didnt rant but wouldnt take no for an answer, he refunded me 75%. I think they have some leeway but you need to get a sympathetic ear.

Might be worth a try. Good luck.

jax18_2

Thank you so much for the advice!! ( as you can probably tell im a bit hopless when it comes to finances) As hsbc have sent me the letter from the debt recovery people (even thought they're are owned by hsbc) do i have to go through the debt company or can i contact hsbc direct regarding it? i dont suppose it'll make much difference either way.I can afford to pay them back if they'll agree to a reasonable amount but at the moment the letter is saying they want the whole amount before next week which theres no chance of me being able to pay.Fingers crossed i get someone with a heart on the phone!!