HSBC seeking more per month!

[Yog sothoth]

I have a debt with HSBC, which is quite a big one, in excess of £8k. Metropolitan Collection Services, their pet DFCA, were handling it and I CCA'd them last March. They took months to do so, but eventually came up with a copy of the original credit agreement and T&C, plus statements. The agreement was, I had to admit, genuine, and was signed by me. So I offered to pay them £10 a month, which they accepted, it being all I could afford.

 

To that end, they sent me a payment arrangement which specified that I should make a fixed number of payments of £10 a month, until 2127 , when the last payment would be made!

 

Now however, 6 months on, DG solicitors, on behalf of HSBC, are demanding an increase in the monthly payment, and their letters are becoming increasingly threatening in tone. I haven't replied to any of them, just carried on paying the £10 a month. They refer to the payment arrangement mentioned above as "temporary".

 

What power do HSBC/DG solicitors have to force me to pay more? Especially when they have sent me details of an arrangement clearly stating a fixed number of payments at £10 a month, for the next 120 years? I still can't pay them more than £10. If they took me to court, I wonder how the courts would see it?

[mr.ton]

They cant force you to pay anything, only a county court can - so stop paying them altogether & demand that they take you to the County Court were £10 or even £1 per month can be made official weather they like it or not

[Michael Browne]

Do not stop paying them, otherwise you have broken the payment arrangement. If they take you to court, you will be able to show you have kept to your side of the agreement.

[Yog sothoth]

I'll have to dig out the payment agreement (not tonight though). I'm sure it doesn't mention anything about being "temporary" on there or the accompanying letter.

[jumpjet]

I would say that if you have the arrangment letter and there is no review mentioned in it, then they have shot themselves in the foot! I agree 100% with Michael, you need to be able to so your are doing all you can.

[mr.ton]

Do not stop paying them, otherwise you have broken the payment arrangement. If they take you to court, you will be able to show you have kept to your side of the agreement.

 

Paying a DCA is not legally binding,its up to the individual of they want to carry on paying or not?

They could argue that with the price of things going up like food for example - then they cannot afford to continue payments.

If it goes to court then its all sorted out on the basis of what the debtor can afford rather than what the DCA dictates.

[ScarletPimpernel]

This is standard MCS practice; the computer sends out letters demanding increased payments every six months or so. It appears to be based upon the assumption that you will have extra money - clearly what's happening in the the global economy has passed HSBC by - which is odd, given that they are partly responsible for the problems.

 

If you just keep making the agreed payments there's nothing they can do other than continue to wave their flaccid willies about in a threatening way. If they took you to court the judge is likely to be unimpressed by their actions.

[Yog sothoth]

Paying a DCA is not legally binding,its up to the individual of they want to carry on paying or not?

They could argue that with the price of things going up like food for example - then they cannot afford to continue payments.

If it goes to court then its all sorted out on the basis of what the debtor can afford rather than what the DCA dictates.

 

The payments are not to MCS though. It was MCS who sent the credit agreement and T&C etc, but they instructed me to make payment to HSBC directly.

[palomino]

I think you should keep the payments up as normal. If nothing else it shows good faith on your part.

[Pimlico]

Hi there

 

I owe HSBC around £23k I had DC solicitors write to me and request an increase after 3 months. I was only paying them £1 per month and in the letter they originally sent to me there was no mention of a review. I forgot to pay them the £1 the following month and things were really tight so I then stopped paying them altogether. DG wrote me various threatening letters and then they sent me one offering me a 20% discount on the monies I owed. I ignored all this and lo and behold the next thing I received was a letter from Apex credit management asking me to contact them to make an arrangement to pay the debt off. I imagine HSBC and DG Solicitors have realised that they are flogging a dead horse and have cut their loses by selling the debt on to Apex. I havent responded to this company and have no intentions of doing so. At the end of the day I dont have any income because I have been ill and I rely on friends to help me out and members of my family the HSBC debt is the last thing on my mind. If you want some real comfort about debt purchase a copy of Debt Advice Handbook by Child Action Poverty group ISBN 1-901698-88-2 it will cost you £18 but well worth the investment since it gives you chapter and verse on everything you need to know like the law and protocols that banks, debt collectors and courts have to following. It is the reference book used by debt advisers and is used and recommended by Citizens Advice. It's a great accompliment to the advice, knowledge and friendship that you get from consumer action group and will be a great companion to you when you get those nasty letters through the post.

[Yog sothoth]

I intend to simply carry on with the £10 a month, for the rest of my life, it seems. Perhaps I should write to them to reiterate that it's all I can pay.

[MK_One]

This really is standard practice for them, I would get phone calls every few months (at one point it was every week until I told them to stop) asking had circumstances changed and could I pay more.

 

DO NOT voluntarily pay above the agreed amount, if you do this they will try to get you to set payments at that amount. Instead carry on paying £10, if you are ever in a position to pay more, put it in a savings account until you have enough to clear the debt. Your account will typically be frozen meaning they are not charging interest so if you put money in a savings account you can gain interest from that money rather than them getting it.

 

I found once I got to approx 50% of the original balance, they agreed to a 50% settlement (though they initially offered only 30%).

[Helios]

Standard MCS practice, DG Solicitors are the same people. Pay them no more what you can afford each month

 

make sure you bar all MCS and DG calls, then they can't bully you for more

 

i too have debts with HSBC, one has a properly valid agreement and the other which is in dispute at the moment over a application form, which i am in HSBC complaints procedure

[MK_One]

Forgot to mention, I made the mistake of giving them a couple of payments early only to get nasty letters saying I hadn't paid. Fortunately, I still had receipts.

[Helios]

They always send out threatening letters if you pay early or couple of days late, ignore all letters from them and keep paying them

[Yog sothoth]

I just set up a standing order for ten pounds. they don't have our phone number. None of the banks or DCAs do.