HSBC Managed Loan.

tom a · 26th October 2007, 17:36

I have a managed loan with HSBC and can't afford to keep up the repayments.
I have sorted a DMP with the CCCS and they have written to the bank with an offer of £24 per month. The full payment is £55.
The bank as refused this offer and still tries to take the payment from my overdrawn account, and bounces it and charges me £25 for the privilege.
I have been into the bank and wrote them a letter asking them to cancel the Direct Debit but they refuse to do this.
I received a letter today saying I am now 3 months in arrears and a Default notice could be issued or further action taken.
I rang them again but just wasted my time.
Any advice what to do next please?

sequenci · 26th October 2007, 18:07

Hello. Sorry to hear about this.

1) Get CCCS to speak to HSBC about this ASAP, call them on 0800 138 1111

2) Ask HSBC to close the overdrawn account straight away, is that account part of the DMP too?

3) Write a letter of complaint to HSBC citing that they are in breach of the banking code. You may wish to investigate whether or not HSBC are one of the funders of CCCS, I bet they are. They are certainly breaching The OFT debt collection guidance

4) if HSBC do not give you a decent answer to your complaint you can take it further via the FOS

andyorch · 26th October 2007, 18:09

Hi Tom
When you get to three missed payments their next step will be to issue a default notice and failure to come to some arrangement with them even thought you have already tried,they will prob issue court summons.Time is of the essence now you must CCA your account and claim back any penalty charges in order to put the account into disspute,If poss open up an alternative account elsewhere and freeze the HS account.
Ps everything in writing now no phone calls

regards

itsamomentintime · 26th October 2007, 18:16

tom a
you cant get blood out of a stone. if you cannot afford the repayments, well, thats that.

follow the advice in post 2. fos need to hear about HSBCs attitude

andyorch · 26th October 2007, 18:26

Quote:

Originally Posted by itsamomentintime

tom a
you cant get blood out of a stone. if you cannot afford the repayments, well, thats that.

follow the advice in post 2. fos need to hear about HSBCs attitude

And while you wait for the FOS to do somthing about it you can sit and add up your ( ongoing penalty charges ) and wait to for your default notice only my opinion

regards

sequenci · 26th October 2007, 18:31

HSBC should act in a reasonable manner which is why it is right to mention that you will look to take it further by investigating the various complaint routes. To be honest the people that should be sorting this mess out is CCCS as they have been empowered by the OP to administrate his DMP. Remember that there is a dispute here so under s2.8k of the OFT debt collection guidance they should halt all action while this is being looked into. By all means use a CCA if it is a debt which is being disputed but what will that do? I will imagine the creditor is likely to have the paperwork being the original lender, although it could be worth a shot if there is a dispute going on.

tom a · 26th October 2007, 18:35

Thanks for the quick replies.
Tried to close the account but they refused. Said they need an account to take payment out of. It is part of the DMP.
Sent a Data Protection Act request in yesterday.
Regard letter of complaint regarding banking code, is there a template letter anywhere or could you give me some idea what to write.
Thanks again.

sequenci · 26th October 2007, 18:45

Have you a new bank account? do set one up, they can use that as an account to take the payment from?

andyorch · 26th October 2007, 18:46

Quote:

Originally Posted by sequenci

HSBC should act in a reasonable manner which is why it is right to mention that you will look to take it further by investigating the various complaint routes. To be honest the people that should be sorting this mess out is CCCS as they have been empowered by the OP to administrate his DMP. Remember that there is a dispute here so under s2.8k of the OFT debt collection guidance they should halt all action while this is being looked into. By all means use a CCA if it is a debt which is being disputed but what will that do? I will imagine the creditor is likely to have the paperwork being the original lender, although it could be worth a shot if there is a dispute going on.

Hi Sequenci
with respect to your comments in reallity we know how these organisations work if they wont accept 50% do you honestly think they will act reasonably.My advice is to act quickly and stop the wheels in motion. they probally will have the paperwork for the loan agreement but we know how this can be pulled apart and my advice will stop them in their tracks of issuing the for said default notice / court proceedings

Regards

tom a · 26th October 2007, 19:02

Quote:

Originally Posted by sequenci

Have you a new bank account? do set one up, they can use that as an account to take the payment from?

Opened an account with Nationwide. I can't set up loan DD because I can't afford the full payment.

andyorch · 26th October 2007, 19:12

Hi Tom
Do you not intend claiming back their penalty charges ? My point of sending them a CCA request and then S.A.R (subject access request ) will enable you to start proceedings against them. Pay the £24.00 from your new account and sit back and wait for their next move. If you follow the advice I have given you they will be in no position to make a next move!

Regards

tom a · 26th October 2007, 19:22

Quote:

Originally Posted by andyorch

Hi Tom
Do you not intend claiming back their penalty charges ? My point of sending them a CCA request and then S.A.R (subject access request ) will enable you to start proceedings against them. Pay the £24.00 from your new account and sit back and wait for their next move. If you follow the advice I have given you they will be in no position to make a next move!

Regards

Sorry for being thick but whats my next step.

andyorch · 26th October 2007, 19:38

Hi Tom
plan of attack is:-

1. send S.A.R to HSBC See Template Library Request Full S.A.R
including £10.00 P.O and dont sign with your usual signiture.

2.Continue to pay £24.00 mthly from new account Pref S/O standing order

3.Collate how much they owe You.

4If they issue a default note they are in default because it would contain penalty charges in your overdraft account

The game here is to isolate HSBC let them continue charging you penalty charges u will get Them back/ you will force them to accept your £24.00
and you will be calling the shots.
Of course they wont let you freeze their account they wont be able to get their penalty charge if you pay from another account

Regards

sequenci · 26th October 2007, 21:51

surely the payment should be made via CCCS

andyorch · 26th October 2007, 22:06

Hi sequenci
If you check Toms first post he states that HSBC are charging penalty charges to his account for bounced D/D payment to Loan Account

Regards

tom a · 27th October 2007, 18:21

Thanks for the advice so far. Just to clarify things a little.
The £24 payment is coming from the CCCS.
The £55 DD is being taken from my overdrawn HSBC account.
There's no money in the account so they bounce it and charge me for doing it!

andyorch · 27th October 2007, 21:55

hi
are they accepting CCCS payment as well? if so surely you are being over charged ie £24.00 £55.00 and penalty charge with what you have just clarified then Sequence,s point above about the CCCS is valid and u should request somthing in writing of their refusal.This will make up your case if it where to come to that If they are refusing CCCs payment and will not stop the loan D/D then let them pile up the charges and hopfully if and when you recieve a default note it will contain plenty of Penelty charges and so will render it invalid a complete defence

Regards

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