Hi all Hope someone can help,I’ll be as brief as poss and thanks in advance to all who respond. Ive run a small business as a sole trader for 5 years. Last year due to the downturn business took a vertical leap of the cliff and I gained an informal overdraft with HSBC, around £1k. This was principally because they had provided me with a charge card which let me run upto £1k/month which was then recovered by DD every month. Since no funds were available one month (Feb/March) they took the DD and left me a £1k unauthorised o/d. They began to charge me £8/day for being o/d and I ended up aprox £1.2 k in debt to them. Since business was v quiet and their collectors kept phoning, I told them there was no way I could repay in full. They advised that if I could bring the o/d under £1000,they would let me repay about £130 per month and still use my account. I managed to do this and all was ok for a few months,but with business still suffering,after 3 months in around July, I missed a payment and they withdrew the facility,leaving me with an unauthorised o/d and charging £8 per day again. When I asked,they would not let me pay by instalments again unless I took out a managed loan agreement,which I read on here are a nightmare so I didn’t sign up. I have continued to tell their collections team that I will pay the o/d as and when I receive funds but business is v slow and |Im having to drag money from people who owe me. The o/d now stands at around £1.5k, around £300 - £400 of which is charges. At the start of December,they sent me a letter saying that I must contact them to let them know how I intend to pay them back and seemingly demanding that I sign up to a managed loan or pay back in full. I messaged them via the internet banking system to say that paying them back is a priority but until my debtors pay me I am unable. I added that I hoped to be able to pay back in full within a couple of months but failing that could only offer to pay £150 per month starting immediately. I have now received their response dated 29th December,which doesn’t acknowledge my message to them at all, but demands payment in full within 18 days ( 16th Jan) and threatens debt collectors/ solicitors action if payment not received and adds that I may also be taken to court Not sure I can find the money by then and wondering where I stand. Any ideas?

Hi all Hope someone can help,I’ll be as brief as poss and thanks in advance to all who respond. Ive run a small business as a sole trader for 5 years. Last year due to the downturn business took a vertical leap of the cliff and I gained an informal overdraft with HSBC, around £1k. This was principally because they had provided me with a charge card which let me run upto £1k/month which was then recovered by DD every month. Since no funds were available one month (Feb/March) they took the DD and left me a £1k unauthorised o/d. They began to charge me £8/day for being o/d and I ended up aprox £1.2 k in debt to them. Since business was v quiet and their collectors kept phoning, I told them there was no way I could repay in full. They advised that if I could bring the o/d under £1000,they would let me repay about £130 per month and still use my account. I managed to do this and all was ok for a few months,but with business still suffering,after 3 months in around July, I missed a payment and they withdrew the facility,leaving me with an unauthorised o/d and charging £8 per day again. When I asked,they would not let me pay by instalments again unless I took out a managed loan agreement,which I read on here are a nightmare so I didn’t sign up. I have continued to tell their collections team that I will pay the o/d as and when I receive funds but business is v slow and |Im having to drag money from people who owe me. The o/d now stands at around £1.5k, around £300 - £400 of which is charges. At the start of December,they sent me a letter saying that I must contact them to let them know how I intend to pay them back and seemingly demanding that I sign up to a managed loan or pay back in full. I messaged them via the internet banking system to say that paying them back is a priority but until my debtors pay me I am unable. I added that I hoped to be able to pay back in full within a couple of months but failing that could only offer to pay £150 per month starting immediately. I have now received their response dated 29th December,which doesn’t acknowledge my message to them at all, but demands payment in full within 18 days ( 16th Jan) and threatens debt collectors/ solicitors action if payment not received and adds that I may also be taken to court Not sure I can find the money by then and wondering where I stand. Any ideas?