HSBC and financial difficulty offer, help needed please

[maleni]

I've had an ongoing battle with HSBC for the past 2 years, unbelievably, about my bank charges. They have taken a total of £6400 from me and have finally looked at my financial difficulty claim today, after much dodging. Over the phone, they have just offered me £580 to cover money owed in household and council tax bills. The man then went on to say that that was not a full and final offer, as they could see the sum was way below my charges claim, but I would have to try to reclaim the rest after the court case (Doesn't this contradict itself a little? The man I spoke to seemed very nervous and unsure of what he was saying). Obviously i do not want to accept such a paltry sum in comparison to what they have taken, but I want to make sure that I proceed in the correct way. What is the best thing to do, please? I have only sent the letter before action to them at this stage, nothing further. I have contacted the Ombudsman, who prompted the bank into offering this, but am not sure if I would be able to continue with a complaint if they have made me an offer to get me out of my current household debts. Any help very much appreciated, thanks so much.

[Electricmayhem705]

Hi Maleni, welcome to the group. Personaly if your realy desperate I would accept the money on condition that you make it entirely clear that you reserve the right to claim the rest of the charges back at a later date.

 

Althought I'm sure someone far more knowledgable than myself will be along presently with better advice!

 

Best of luck against the muppets

[yourbank]

I've had an ongoing battle with HSBC for the past 2 years, unbelievably, about my bank charges. They have taken a total of £6400 from me and have finally looked at my financial difficulty claim today, after much dodging. Over the phone, they have just offered me £580 to cover money owed in household and council tax bills. The man then went on to say that that was not a full and final offer, as they could see the sum was way below my charges claim, but I would have to try to reclaim the rest after the court case (Doesn't this contradict itself a little? The man I spoke to seemed very nervous and unsure of what he was saying). Obviously i do not want to accept such a paltry sum in comparison to what they have taken, but I want to make sure that I proceed in the correct way. What is the best thing to do, please? I have only sent the letter before action to them at this stage, nothing further. I have contacted the Ombudsman, who prompted the bank into offering this, but am not sure if I would be able to continue with a complaint if they have made me an offer to get me out of my current household debts. Any help very much appreciated, thanks so much.

 

If the amount does not cover your priority debt arrears(mortgage/rent, council tax, utilities) then I would negotiate a higher amount based on that. The bank cannot offer a full and final settlement since they are prohibited under the FSA Waiver, however, you have the right to approach them again if your priority debts get in arrears again.

Many users here advise filing at county court regardless of the amount offered and that is something you have do decide if you want to do. If you do then others can advise you of the process involved.

[johnnymitch]

Hi maleni , welcome to the forum

 

As yourbank rightly points out they can no longer make full and final settlement offers . That being the case I see no harm in you accepting their (forced) offer of assistance , as long as you make it clear that you are acccepting it as a part-refund and that you reserve the right to continue to pursue the remainder through the County Court.

 

If you have sent the LBA then the lodging of your claim is the next logical step ..... if you decide on that , then it is best to do it through your local County Court as you have more flexibility than using MCOnLine.

 

http://www.consumerforums.com/resources/templates-library/48-bank-templates/113-4-particulars-of-claim-n1-updated-version-now-available.html

 

This link should help ,but come back if you need further info - you'll always get an answer from someone on here......

Edited May 8, 2009 by johnnymitch
corrected link ..........

[Castlebest]

Hiya maleni I agree with both YB and JM if the offer covers your priority debts you can accept the banks "kind" offer only as an intermediate stage of your negotiations and they should accept this... you need to put something in your letter like...

 

... I have no alternative at this point in time but to accept your offer to refund £580 to cover priority debts in response to my submission under the terms of the FSA waiver for hardship. I confirm this is an intermediate solution to my financial problems and in no way will affect the remainder of my claim for the repayment of the bank charges you have deducted from my account(s) or my right to submit further evidence of hardship in the future should the situation arrise...

 

or something like that

 

pete

 

pete

[maleni]

Thanks all for your advice and encouragement. If only the whole thing wasn't so agonisingly slow! Will follow up with registering the county court claim and tentatively accepting the initial payment. Cheers, M.

[maleni]

Hi again, a friend has just pointed something out to me - if I accept the 580 pounds and then try to carry on at courts (even if I make it clear I am only accepting this as part payment), will they not just refuse to push it through? If I've paid of my immediate debts, will I just be no longer considered to be in financial hardship meaning my case cannot be considered until the high court judgement? Just wanted to check, thank you...M

[johnnymitch]

If you mean are they not going to push through the current one if you continue with court action - they've been forced to make this offer by FOS or they wouldn't have made it - but I think you need to get the offer in writing - otherwise they can say it was never made .....

 

But have another look at pete's post (#5 )Maleni. If , after taking the £580 you find at a later date you require more you can try for another Hardship payment - if you can prove again you're in hardship , there's no reason why it won't be granted as was the original ...... but get this one confirmed first. Have you got the offer in writing ?

[maleni]

I haven't received the offer in writing yet - was told it would go in the post Friday. I just wanted to know if I accepted this, would I officially be out of hardship and my case would only be looked at after the high court judgement (unless I fell into what they term hardship again?) Thanks, sorry for the confusion.

[yourbank]

I haven't received the offer in writing yet - was told it would go in the post Friday. I just wanted to know if I accepted this, would I officially be out of hardship and my case would only be looked at after the high court judgement (unless I fell into what they term hardship again?) Thanks, sorry for the confusion.

Nope, if you were to get into more financial hardship then the bank will have to look at it again.

[maleni]

Hello again,

 

I've accepted the money and paid off my priority debt, I'm now just in the process of registering the court claim. Could anyone direct me to any guidelines on how to fill in the form? Bit nervous about getting it wrong and want to be clear about the new terms of not calling the charges 'penalties' merely 'unfair, etc.

 

Thanks v much in advance,

 

Maleni.

[maleni]

Also can i ask, from what date should the interest be calculated when registering the claim at court? I sent two letters before action with different figures, one in May 2008 and a further one for more money in April 2009. Thanks again.

[johnnymitch]

The interest is calculated from the date the charge was raised maleni, but it's only claimable when you lodge it in court ......if you're using a spreadsheet from the forum , it'll work it out for you ......

 

Oops! sorry , I missed your previous query .... try this link

 

http://www.consumerforums.com/resources/templates-library/48-bank-templates/113-4-particulars-of-claim-n1-updated-version-now-available