Hsbc Cdru Mcs

[silverrocket]

Hello,

This is regarding a HSBC current account which went heavily overdrawn (long story). The account is now being looked after by CDRU.

 

The amount owing is £4800, and I've been increasing the offer and each time they've rejected it. My last offer was £3100, but they're adamant they won't take less than £3800!

 

Has anyone had any luck with these guys?

 

Part of my settlement terms is the removal of a default, has this been an issue for anyone?

[johnnymitch]

Hi silverrocket, welcome to the forum:)

 

From your other thread 'new user' I get the impression that you have a claim which you can pursue with HSBC for 'unlawful' charges - somewhere about £2K I think you said.

If you have set the ball rolling to reclaim this then the account is in dispute and as such is not actionable at the moment.

Of course if your debt was in the hands of the DCS before you started any action to recover then you have to make them aware that the account is under dispute.

 

You could try a letter like this - suitably amended....

Re: Account in Dispute

ACCOUNT NUMBER: XXXXXXX

 

Dear Sirs

 

Re: Account in Dispute

 

I am writing to clarify that I am currently in the process of requesting a refund of bank charges unlawfully made to my account.

 

I note from your latest correspondence that you are proposing to issue me with a Default Notice on this account - I need to make you fully aware that I am disputing the sum owed and, as such, you must refrain from any further action until this dispute is fully resolved.

 

If you do not stop this default action and proceed by making any adverse comments on my credit reference files, I shall be forced to take legal action against you under the Data Protection Act 1998.

 

Yours sincerely,

Of course ,if you haven't started the ball rolling with a claim, then you need to proceed with that first............then consider the above.

I'm sure there will be others pitching in to help on here, SR, there's always loads of advice if you ask for it - and we're a friendly lot......

[silverrocket]

Sadly, that account with the charges on it is not this one

 

I really do appreciate all the help I've gotten so far, just reading this forum has helped me work out so many of my accounts.

[johnnymitch]

Sadly, that account with the charges on it is not this one

 

Aw, that's a pity, SR...... .

 

Only you can decide on the other one I think - i.e. is a grand less than the amount owing and removal of a default a good deal , or do you hold on in the hope of a better one ?

[silverrocket]

Would it be worthwhile/plausible to offer £3100 now on the condition they remove the default instantly, and then pay the rest in instalments?

[silverrocket]

It annoys me how hard nosed some of the companies I'm dealing with are. HSBC and Egg are by far the worst, they seem to go out of their way to be difficult.

[johnnymitch]

Would it be worthwhile/plausible to offer £3100 now on the condition they remove the default instantly, and then pay the rest in instalments

 

Anything is worth a try, SR , you can only ask, and they can only say 'yes' or 'no' . At the end of the day, it is an offer of settlement....

 

I know what you're saying about them being hard-nosed - HSBC do it to try and lead you down the 'Managed Loan ' road , which is a recipe for disaster.....

[silverrocket]

Managed loan? I keep seeing it mentioned but have no idea what it actually is.

 

Thankfully, my financial position now is pretty strong, I just want to avoid paying that full amount if at all possible!

[johnnymitch]

Hi SR it's good that your position is pretty strong..... just to give you an idea , this is someone's(can't remember who) short graphic description of Managed Loans :

 

It happens when you are deeply overdrawn - charges every month, then they present it like the holy grail - they will loan you the money to pay off the overdraft - you'll be back in the black - hurrah! and maybe even a little extra to spend on whatever you want. it's a con! you will be paying for that little loan for a long, long time to come - and i mean years and years and years! the loan rate is way above the norm - like at least 10 points higher. they pay themselves the interest every month, month in and month out and very little off the principle of the loan.

I've seen probably hundreds on this forum who are struggling with managed loans. so, sermon over - try to keep your head above water and do what you can to clean up your financial act but under no circumstances fall for hsbc's managed loan - it is like indentured slavery! you will live to regret it

 

Also, if you're short of light reading material (horror stories!) you might like to dip into this link http://www.consumeractiongroup.co.uk/forum/hsbc-bank/15457-who-has-had-managed.html?highlight=Who+has+had+managed+loans%3F[/

Edited June 11, 2008 by johnnymitch