£750 HSBC and now Debt Collection Agency
makes_cents
Posts: 103 Forumite
I few years ago I decided to start a foundation degree to gain entrance to University.
My fees for this course were paid for me and I decided to take a student loan out.
I also decided to open a Student account with 0% £1000 overdraft with HSBC.
Well after 4 months of the course needless to day I dropped out.
Now the next thing I did was really stupid, I told HSBC that I was no longer a student and 0% went to 14%, this is possibly the most stupid mistake I've made in the last 5 years (yes I've made worse).
This is my first debt and now my only debt.
I've been abroad staying with family for the previous 7 months. I didn't earn any income there and was occasionally given cash to put in. This changed when I moved in with my girlfriend and nothing was paid in.
They then proceeded to send letters to my parents home address (who I still live with) in the UK. My mother replied on 2 occasions stating that I can pay in when I return. They then sent a final demand notice asking for the £749.46 immediately. I cannot pay this so my mother sent another letter stating I can pay £25 per week from roughly 2 weeks (JSA waiting time) from when I come back. It's been 3 weeks and JSA is only just going in next week (I applied the day I came back).
JSA nets me around £46.50 a week. I also have money my parents owe me which is around £250 which they cannot pay all at once (say £30 a week).
I am basically asking you members what is the best way to handle this as not to do any more damage to my credit history. I know that I will need to borrow money in the future mainly for a flat/house and I don't want to be declined in the future.
The letter from Metropolitan Debt Collection Agency Birmingham asks me to call them and quote the reference. I just don't want to be gullible agreeing to anything and not knowing what is going on, or what the standard procedure is before hand.
This post is a bit of a "mish mash" and I do apologise making some of you read through what might be unnecessary detail. I am in full blown panic mode having to detail with a Debt Collection Agency because I am scared that they make their money by adding on £5 to send a letter here, £10 for a telephone call there.
Thanks your time and input will be gratefully appreciated.
Makes Cents
My fees for this course were paid for me and I decided to take a student loan out.
I also decided to open a Student account with 0% £1000 overdraft with HSBC.
Well after 4 months of the course needless to day I dropped out.
Now the next thing I did was really stupid, I told HSBC that I was no longer a student and 0% went to 14%, this is possibly the most stupid mistake I've made in the last 5 years (yes I've made worse).
This is my first debt and now my only debt.
I've been abroad staying with family for the previous 7 months. I didn't earn any income there and was occasionally given cash to put in. This changed when I moved in with my girlfriend and nothing was paid in.
They then proceeded to send letters to my parents home address (who I still live with) in the UK. My mother replied on 2 occasions stating that I can pay in when I return. They then sent a final demand notice asking for the £749.46 immediately. I cannot pay this so my mother sent another letter stating I can pay £25 per week from roughly 2 weeks (JSA waiting time) from when I come back. It's been 3 weeks and JSA is only just going in next week (I applied the day I came back).
JSA nets me around £46.50 a week. I also have money my parents owe me which is around £250 which they cannot pay all at once (say £30 a week).
I am basically asking you members what is the best way to handle this as not to do any more damage to my credit history. I know that I will need to borrow money in the future mainly for a flat/house and I don't want to be declined in the future.
The letter from Metropolitan Debt Collection Agency Birmingham asks me to call them and quote the reference. I just don't want to be gullible agreeing to anything and not knowing what is going on, or what the standard procedure is before hand.
This post is a bit of a "mish mash" and I do apologise making some of you read through what might be unnecessary detail. I am in full blown panic mode having to detail with a Debt Collection Agency because I am scared that they make their money by adding on £5 to send a letter here, £10 for a telephone call there.
Thanks your time and input will be gratefully appreciated.
Makes Cents
MBNA CC: -£8390
Father-in-law loan: -£4500
Student loans: -£17,120
Total debt: -£30,010 :mad:
Father-in-law loan: -£4500
Student loans: -£17,120
Total debt: -£30,010 :mad:
0
Comments
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Metropolitan Debt Collection Agency is the HSBC 'In-House' Debt Collection Agency.
Write to HSBC and make an offer of payment, but do not offer any more than you can afford.
There are some good template letters on the National Debtline site, which you can find by going to :
http://www.nationaldebtline.co.uk
If you continue to be harrassed by Metropolitan, then have a look at the following link:
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10034289I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0 -
OK I called them today.
We agreed that £10 a week would be a sufficient amount to pay.
They also informed me that I would not pay any more interest from this point.
They couldn't say what this would do to my credit record.
MCMBNA CC: -£8390
Father-in-law loan: -£4500
Student loans: -£17,120
Total debt: -£30,010 :mad:0 -
You'll already have several months worth of defaults showing so it's pretty dire by now anyway.
If its been passed onto a debt recovery company, the record for the account will probably show as satisfied and no further defaults will show.
The only way you're going to know is to apply for a copy of your credit file from Equifax/Experian in a few months.0 -
I've been told defaults will disappear within a year or two, is this true?
MCMBNA CC: -£8390
Father-in-law loan: -£4500
Student loans: -£17,120
Total debt: -£30,010 :mad:0 -
If only. They stay on your record for 6 years.
Once you've settled the debt, the status should change to 'satisfied/settled', but it will still be there visible on your credit file for anyone checking your credit rating to see. BSC #53 - "Never mistake activity for achievement."
Consumer Credit Counselling Service (CCCS)| National Debtline| Business Debtline| Find your local CAB0 -
wherediditallgo wrote: »If only. They stay on your record for 6 years. Once you've settled the debt, the status should change to 'satisfied/settled', but it will still be there visible on your credit file for anyone checking your credit rating to see.
6 years is an acceptable time for me, I do not think that I will need credit again within 6 years.
Thanks
MCMBNA CC: -£8390
Father-in-law loan: -£4500
Student loans: -£17,120
Total debt: -£30,010 :mad:0 -
makes_cents wrote: »OK I called them today.
We agreed that £10 a week would be a sufficient amount to pay.
They also informed me that I would not pay any more interest from this point.
They couldn't say what this would do to my credit record.
MC
I suggest that you confirm this arrangement in writing (in case they don't) and send registered post, keeping a copy for your file. Of course, you also need to ensure you maintain the £10 per week payment.
Thanks to MSE, I am mortgage free!0 -
angelavdavis wrote: »I suggest that you confirm this arrangement in writing (in case they don't) and send registered post, keeping a copy for your file. Of course, you also need to ensure you maintain the £10 per week payment.
Good advice, I will do that.
MCMBNA CC: -£8390
Father-in-law loan: -£4500
Student loans: -£17,120
Total debt: -£30,010 :mad:0
This discussion has been closed.
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