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So, I received the 1st letter from HSBC regarding my financial situation. Basically, I've an unsecured loan of £13,000, a credit card of £3,500 and overdrawn in my current account of £250 with them. All the payments have been kept up to date apart from the start of Jan which is when I'm experiencing difficulties to making repayments.
I've written to them using the template from this site about making reduce payment base on what I can afford which is around £60 but instead of hearing to see if they'll accept that for the time being, I received a confusing message about a recent conversation I had with them which they agreed to call me back but fail to reach me, they're asking me to call and discuss with possibly another call centre about my situation.
I've never had any conversation with them as I put in my letter that all my correspondance will be in writing only, so I guess it must be a template letter?
So I'm wondering what should my next step be? Should I put in some sort of token payment to show that at least I attempt to pay in? or write to them again asking if £60 is acceptable? Also I've not send them the CCA request letters, should I be doing that at this stage to see if they've an valid agreement?
I would say that you should keep paying what you can afford , whilst trying to negotiate a repayment which you are both happy with ... that way you are proving that you intend to repay.
You are wise to insist on communication being in writing only .... that way they shouldn't hassle you with phone calls ..... and there's a paper trail if it became necessary to prove your willingness to pay what you can afford ..
As for a CCA , you can ask for that at any time costs £1.00 and they have 12+2 days to produce it .....
I would be wary of them offering you a 'Managed Loan'......they won't call it that , but the approach is ..... "oh! we can lump all your debts together and you pay in one easy instalment " ........ sounds great , but you are paying forever.... at inflated interest rates, it's financial slavery ....
If you could clear that £250 overdraft it would help ... you could also consider opening a parachute account with a completely different bank so that any earnings /income is not swallowed up by HSBC under the 'Rights of Set-off' ..... where they can (legally) use money coming into one account to service a debt on another .....
Come back if you need more info on anything .... someone will answer ,and we're user-friendly on here .
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Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.
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Thanks Johnnymitch, I've already using a parachute account for my wages to pay in from this month onwards. I think I'll pay in what I propose to them and continue writing to them as well as request for a CCAs.
The only thing with the overdraft is that, my agreed overdraft amount was only £250 but because of my non payment on the loan, they've decided to go over my overdraft limit and debit the loan from there, making the overdraft amount by £600 as (£350 is for loan repayment), so even if I pay in £250 trying to clear it, it won't be clear as it has gone above the limit..hope it makes sense?!
I'll keep you all posted for when I hear more from them and see if they manage to send me the CCAs that I will be requesting.
Pinklover , they're not allowed to do that ..... they can't put you into debt on one account to service another ..... the 'Rights of Set-off don't allow that .....
Right of set-off ............... http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm (courtesy of vint54)
They are allowed to take regular payments or offset a defaulted loan, from a credit balance only.
You need to write to them, insisting that they return your account balance to where you had left it. Remind them that the terms of ‘set off’ only allow them to dip into a CREDIT balance - NOT create an overdraft, even if the overdraft is an agreed one.
I would insist that they comply with this or be reported to the Financial Ombudsman.
Nemo me impune lacessit
Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.
If you think I've helped you please feel free to tickle my star
Thanks again, I'm so thankful of all the info I gain from here! I've no idea they're not allow to take more from an overdrafted account.
I've written them a letter now to ask them to bring my account back to what it was before so that I can pay off my overdraft at least.
In regards to lumping everything to one, I've been there..done that as well as I get into this mess because that's what they proposed to me 2 years ago to consolidate in one big sum..and guess what?! I'm not in a position that I can't afford such a big payment every month anymore..so I won't be tempted to do that again, that's for sure!
Pinklover, if that was a 'Managed Loan' then it's supposed to be a short-term measure (rolling on the floor laughing ! ) to tide you over until you can afford a better deal ... they're supposed ot review it periodically and if your circumstances have improved to offer you a revised arrangement / Terms & Conditions which are to your advantage, not theirs ...
If they haven't done any reviews ... I would ask them why .... put 'em on the back foot .....
Nemo me impune lacessit
Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.
If you think I've helped you please feel free to tickle my star
I'm afraid I might not have explain it properly..I've taken a loan from them years ago, probably around 8 years ago. My credit card payment have gone up lots in a few years after and they afford me to combine the credit card balance to the exisiting loan to make it a lump sum to pay (as lower interest), so I sign for a new loan amount around 2007. Sadly, as well as paying for that loan, I've also use the credit card as well..which means that the credit card payment start building up again to the point now where I cannot afford to repay both the loan and the card.
So, I'm afraid it's not a short term measure as they've issue me with a new agreement to sign at the time when I increase the loan amount to pay off the CC. (Just hope they lost the paperwork now!)
I'm NOT in a position that I can't afford such a big payment every month anymore..so I won't be tempted to do that again, that's for sure!
I should have realised you meant "I'm NOW in a position ..etc etc ...... "
You've nothing to lose (except £1) by sending them a CCA ....... I'd say go for it ....... they're not allowed to call for payment in full if you're only asking for copies of your agreements ............
Nemo me impune lacessit
Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.
If you think I've helped you please feel free to tickle my star
Just a little update of my situation and looking for help at the same time!
So, still haven't heard much from HSBC regarding my missing payment on my loan and credit card. I've not yet send my CCA (Yes, I know..as I've been away since my last post but planning to send them end of this week) So far, I've only received 2 standard letter reminding me to make payment and asking me to call, together with a leaflet for help on finances etc.
My concern is that since I send them the letter regarding them taking money from my (already overdrawn current account) to repay my monthly loan payment, they're still doing it this month. I've just check my account online and my normal loan payment goes out 1st of each month and I can see they've debit from my account again! My agreed overdraft limit is only £250 but now because they've debit 2 x monthly loan payment, it's over £900 overdrawn. I'm aware from the posts above that it is illegal for them to do that.
I've sent them the letter for over 2 weeks now, they've not response or credit my account back to normal.
I'm wondering if someone can tell me what is the best address to write to them and also address to send in for my CCA?
Send them a 'Recorded Delivery' Letter , refer to your previous letter and tell them that , unless your account is fully restored within 7 days to it's previous balance before they plundered it illegally , that you will report them to the Financial Ombudsman .........
It may be worthwhile telephoning the Ombudsman anyway , to ask them for advice, that way you may get a Case no . which you can refer to when corresponding with HSBC . That way they'll know you mean what you say ..
The address for your CCA (and your complaint letter, but send them separately):
HSBC Bank Plc Service Quality Team Arlington Business Centre Millshaw Park Lane Leeds LS11 0PP
Tel 08456 028006
Fax 08001696143
Incidentally , who did you send your first letter to ?
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Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.
If you think I've helped you please feel free to tickle my star
Thanks so much again! I will send following up letter, CCA and copies of previous letter to the Leeds address..my 1st letters was sent to my account holding branch and copies was sent to Canada square, London. I will be sending them as recorded from now on, it was just at the time post office was closed and I happen to have lots of stamps lying around and didn't thought much of keeping a record of it all.
I shall write an update if I hear anything from them.
You're welcome , pinklover ,- let's know how you get on if you would please .... it'll help others ....
Nemo me impune lacessit
Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.
If you think I've helped you please feel free to tickle my star
Ok, so a little update on the CCA requests that I've send just over two weeks ago now..sadly, they've promptly responsed to my request on credit card agreement and from my limited knowledge, looks like the real deal as it has my original signature on it and that they send the documents within the allow timeframe..so can't really agrue with that!
However, they still haven't send me the agreement for my unsecure loan which I've sent the request on the same day as the credit card one, it has now go over the 12+2 days timeframe. Can someone please suggest me which letter to send now? will it be the account in dispute one? At least, because they've produced the Credit Card agreement without asking for my real signature on the request letter, they can't really ask for that for my loan agreement copies! At least, they can't use that as an excuse if they fail to produce that copy.
Hi pinklover , somehow your post seems to have been overlooked ,, sorry about that ........... you could send them this letter just adapt it to the info you want ...
Reference ....... (your letter of xx xxx xx)
I am disappointed that you have failed to respond to my request for a copy of my Loan agreement to which I am entitled under the Consumer Credit Act 1974 (Sections 77−79). A copy of this letter is attached for your convenience.
I have previously enclosed a payment of £1.00 which represents the fee payable under the Consumer Credit Act.
I understand a copy of our credit agreement should be supplied within 12 working days. The deadline for this passed on xx xxx xx
I am sure you also understand that under the Consumer Credit Act creditors are unable to enforce an agreement if they fail to comply with a request for a copy of the agreement under these sections of the Act.
Failure to respond positively will be reported to the Financial Ombudsman Service and the Information Commissioner’s Office .
Yours faithfully
See what they come back with on that
You could also add :
"PLEASE NOTE that unless otherwise stated by yourselves and if the above documents are NOT provided, it will be CONFIRMED that you are unable to reproduce/provide in any way shape or form any copies of the above requested documents. You are reminded that you have a duty to inform me if you do not have the above documents. This is confirmed in High Court Law - Ezsias v Welsh Ministers - [2007] All ER (D) 65 (Dec) "
Nemo me impune lacessit
Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.
If you think I've helped you please feel free to tickle my star
Well, at least they've got to tell you if they haven't pinklover ... .
Nemo me impune lacessit
Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.
If you think I've helped you please feel free to tickle my star
Thanks Johnnymitch yet again for helping me re: editing post!;-)
I've re-attach links so that it this post hopefully won't stretch too long!
As I mentioned previously, they've reply back to confirm they're unable to locate my sign copy of the agreement as highlighted on my 1st page attachment letter. Instead, they've send the various PRE-contract agreement and the Breakdown of the payments I've made so far etc..
So, my question is if there is a letter to send them (obvious not to request my true copy of the agreement anymore! As they already said they haven't) but to nicely ask them to written it off becos there are no agreement, which I know they won't but prehaps start to negotiate a F&F offer? Hope it make sense! My thoughts is that as long as this won't go to court (which I doubt it would now), I don't intent to make payments towards it mostly becos I can't afford it right now, so I guess it'll just get pass around different DCA in circles for the next years? Am I right to assume that?!
If you go down to the right hand corner of your post that has the copies on it , click on 'Edit' then when the screen comes up again select the images and click 'Delete' .
You can probably put them back on another post if you use a different scan media ..... like maybe Photobucket ?
also I don't see any signatures on what you've already posted are there other pages to be displayed ?
I look forward to your thread being de-stretched .....
Nemo me impune lacessit
Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.
If you think I've helped you please feel free to tickle my star
Pinklover vs HSBC
regarding my financial situation. Basically, I've an unsecured loan of £13,000, a credit card of £3,500 and overdrawn in my current account of £250 with them. All the payments have been kept up to date apart from the start of Jan which is when I'm experiencing difficulties to making repayments.
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