HSBC - Ever Increasing Overdraft

[thesecret]

I have an overdraft with HSBC originally for £1000, which i have for 8 years.

In Nov 2007 i became unemployed and was approx £600 overdrawn.

HSBC continued to put charges on to my account resulting in the whole of 2008 going over the agreed £1000 limit.

All standing orders have been cancelled except my house insurance which is with HSBC themselves.

HSBC are now charging me a bank charge of £25, interest and a service charge totalling over £60 per month.

The balance is now over £2200.

I paid off £680 with a tax rebate but has returned to over £2200

I have now received a letter asking for payment in full which i cannot pay

I have not used this account at all other than paying in approx £900 in the last year which would of covered the original overdraft.

My overdraft facility has now been withdrawn.

What can i do?

[johnnymitch]

Hi thesecret, welcome to the forum

From what you say I gather that you are using another bank account for your day to day finances , which is good because it means that HSBC cannot get their hands on the money you need to live on .

I also gather that much of your 'over the limit' overdraft has been caused by these 'unlawful' bank charges...... therefore you need to start a claim process as soon as possible to reclaim these . The following link will get you started on this. Such action will put the account 'in dispute' which means that the bank cannot pursue payment, nor can they pass it to a DCA for collection .

So make sure when you send your S.A.R that they know you are disputing the levying of these charges...... send everything 'recorded delivery' so that someone has to sign for it . That way they cannot say they didn't know you were disputing the account.

 

Step by Step Instructions post OFT Test Case

 

http://www.consumeractiongroup.co.uk/forum/faqs-please-read-these/31460-example-step-step-instructions.html

 

Come back if you need further help with this ... someone will answer ... and we're a friendly lot on here ..

[thesecret]

Hi! Thank you for your response and information. I have just completed the access request. I may have to come back for help when they respond but just wanted to know does sending this request freeze the demand they are making as they have said if not paid in full in 7 days they will take action....just a bit worried.

[johnnymitch]

Hi again ts , - you have moved quickly, well done - when they get the SAR they should be aware that this account is 'ln dispute'. If you haven't sent it yet , make sure you tell them in writing so that there is no mistake about it......

 

Have they said what action they will take in 7 days ? If they're talking of legal action you should be able to mount your own counter-claim when you have a figure from your SAR documents. However , even if you haven't got an exact figure an approximation should suffice until you know for sure how much they owe you .

By all means come back and ask when they respond or, if you're worried ,before that...... there's lots of help on here for you .......

[thesecret]

Hi there!

My letter from HSBC informs me they will take me to debt collectors or solicitors and possibly court if I do not pay them in full. They have also requested I complete a buget planner.

I have sent my SAR today together with a cheque for £10.

I already have a completed budget planner. I will not send any thing to them until I get some thing back from the SAR and follow instuction from you if thats ok?

Thank you for your support, it is really appreciated.

[johnnymitch]

If your S.A.R - (Subject Access Request) has gone that's the main thing ts, .....you've set the claims procedure in motion.

 

HSBC will huff and puff and threaten - you may get a letter from Metropolitan Collection Services which sounds ominous until you realise they are not a company, just a branch of HSBC using their premises and database, just different headed paper......

If you do ,just write and tell them that this account is 'in dispute' and they are not allowed to pursue collection ........

 

Have a look at this link - it's interesting ........

http://www.consumeractiongroup.co.uk/forum/hsbc-bank/125577-metropolitan-collection-services-action.html

 

But come back anyway if you need further help re your claim......may not be me, but someone will always answer on here ......... and thanks for tipping my scales .... :grin:

Edited November 12, 2008 by johnnymitch

[summer30]

I had a similar problem, HSBC just kept adding charges to an overdraft and withdrew the facility

 

Ive been trying to get information from them for a while, now they stopped my payments, and are not replying to any of my letters.

 

V strange, I cant find out anything about the debt. I have to say out of all my debts they were the least accomodating, they even refused to cancel a standing order I had set up so it continued to make the amount OD rise.

 

They sent two of my loans with them to MCS, who couldnt organise that famous line in a place that makes beer. Eventually I told MCS to either get it right or stop contacting me, not heard a word since LOL

[thesecret]

i have a separate question but not sure where to post

I have a stayed claim, what do i do next?

CCA was unenforceable, do i offer any thing to clear the debt as full and final settlement.

Thanks

TS

[slick132]

Hi TS,

 

Is the Stayed claim is for a credit card case.

 

Are you the Claimant.

 

What chgs are on the a/c and what is the approx a/c balance.

[thesecret]

Stayed claim is for HSBC im the defendant

Again not sure as to how many charges so i guess SAR them and get that knocked off the balance?

Account never frozen despite being in dispute over CCA agreement

Its at £4356 with a limit of £3700

 

TS

[slick132]

You mention a CCA so I assume it's a credit card a/c.

 

In which case, why is it Stayed - there's no dispute that CCard charges are penalties.

 

SAR to get the chgs data if you don't have all the a/c state's. Then quantify the charges to make your counterclaim.

Edited November 23, 2008 by slick132

[slick132]

Hi TS,

 

I've moved the HSBC posts here, so they don't confuse the BC/Goldfish/Morgan Stanley confusion.

 

[thesecret]

Hi Slick

Its a Credit Card sorry forgot to add that.

Unenforceable credit agreement / application form recieved

The court stayed the claim as my defence was served on them, and no response received in relation to the defence from them

HMCS responded back with a letter advising that if i hadnt heard anything within 28days the claim would be stayed.

Nothing heard, claim stayed! Happy Days

[slick132]

When was the Defence Filed at court.

 

I assume the court has made no Directions for the case, but please confirm.

[Castlebest]

thesecret, you are in quite a perilous position Credit card claims from either side shouldn't be affected by the test case. You have been fortunate that the bank has been slack so far and the court has seen fit to stay their claim against you, however this could change at any time if the bank realise what has happened, trust me they may play dumb but they arn't .

 

I would advise you to be ready when the bank apply for the stay to be lifted and be sure, if your account balance is more than your claim that you can lay your hands on the difference .

 

pete

[kashmir666]

Hi

 

I've been in the same state for 2 years and they've just passed me over to Metropolitan Collection Services who demanded a Payment Agreement over the phone or they would take me to court. I owe £1880 and i'm paying £30 a month £27 of which is going on charges and interest. I stopped using the account at about £1000 at their insistance that i was going towards Bankruptcy and had to do something. I engaged a Debt managment company which HSBC refused to acknowledge but accepted the token payment. After we ended up selling our house to attempt to clear all our Debts they refused a Partial Settlement of over 70%. I then began paying £30 for the last 18-20 months. They have refused to freeaze any charges etc throughout the whole period despite repeated requests.

 

My question is should i begin claiming charges back to stall MCS?

 

Thanks

 

Tony

[Monty2007]

In 2005 I was made redundant. At the time I had an overdraft facility with HSBC for 5,000 and had used about 2,000, I was very stupid and wrote and told them I had been made redundant and was looking for work. They immediately withdrew the overdraft and demanded repayment of the 2,000 within 14 days. I managed to pay it back from my redundancy money, a few weeks later they offered me 200 if I closed my account which I did.

 

They are horrible and the worst bank I have ever had my overdraft with.

[johnnymitch]

Hi

 

I've been in the same state for 2 years and they've just passed me over to Metropolitan Collection Services who demanded a Payment Agreement over the phone or they would take me to court. I owe £1880 and i'm paying £30 a month £27 of which is going on charges and interest. I stopped using the account at about £1000 at their insistance that i was going towards Bankruptcy and had to do something. I engaged a Debt managment company which HSBC refused to acknowledge but accepted the token payment. After we ended up selling our house to attempt to clear all our Debts they refused a Partial Settlement of over 70%. I then began paying £30 for the last 18-20 months. They have refused to freeaze any charges etc throughout the whole period despite repeated requests.

 

My question is should i begin claiming charges back to stall MCS?

 

Thanks

 

Tony

 

Hi tony, welcome to the forum - in order to get the answers you want which are not mixed up with anyone elses' would you like to start your own thread please ........... just go to the top of the HSBC site page and click the 'New Thread ' button . you can probably cut and paste your query from here , or a moderator could transfer you ....

Thanks,

[thesecret]

I'm confused with the prelim approach for repayment,

"I calculate that you have taken £1209 plus a further £XXX which you have charged me in overdraft interest for the sum which you have taken. Total £XXXXX ."

1209 is the total amount of charges but i dont know how to calculate the interest as it says not to add the 8% unless its a court claim.

Am i just being thick?

Thanks

TS

 

 

[johnnymitch]

Hi ts,

 

That letter seems to take into account the 'Advanced ' spreadsheet which calcuates the interest which would have accrued on the charges. This is not to be confused with the 8% interest which becomes applicable when the claim is lodged at court.

 

However , if you're using the 'simple ' spreadsheet, as I think most people do , then just ask for the amount which has been taken in charges at this stage.

Just say " I calculate that you have taken £xxx . xx in charges for the fees stipulated in the Schedule of Charges which I am enclosing with this letter"

 

Then print the SOC without the interest columns at this stage .

[thesecret]

Thanks JM

[johnnymitch]

You're welcome TS

[thesecret]

Hi DG have reared their heads again, I have attached bucket links.

They are mentioning recent test cases so i need some advice here

 

http://i559.photobucket.com/albums/ss40/micallef_lynn/DGSolicitors.jpg

http://i559.photobucket.com/albums/ss40/micallef_lynn/DGSolicitors2.jpg

http://i559.photobucket.com/albums/ss40/micallef_lynn/DGSolicitors1.jpg

[slick132]

Hi TS,

 

On what basis do you say the agreement is unenforceable.

 

Post the doc't if you want it checked.

 

Have you read Link No 5 in my signature.

 

[thesecret]

Hi Slick

 

Below are links to a supposed credit card agreement

 

http://i559.photobucket.com/albums/ss40/micallef_lynn/hsbcmaster000.jpg

http://i559.photobucket.com/albums/ss40/micallef_lynn/hsbcmaster0.jpg

http://i559.photobucket.com/albums/ss40/micallef_lynn/hsbcmastercopy.jpg

 

I have also had sent to me a load of photocopies of leaflets regarding changes to my credit card terms and conditions

 

Is this enforceable?

 

Thanks

 

TS