Advice with HSBC debt please

[Lou-Hoo]

Hi I'm new, I've looked through the existing threads but couldn't find a relevant place to post so I started a new thread.

I have just received a letter from Metropolitan collectors for HSBC demanding the full payment of my credit card back which is just over £2000

 

I lost my job a couple of years ago and so started to freelance, money comes in sporadically and not in great amounts. I owe money to 3 credit companies (Including HSBC) it all comes to less than £5000.

I have tried to find a part time job but when I do get work in it takes up all my time, recently I have worked 2 weeks solid late into the night, so it makes holding a PT job down hard work.

 

If it wasn't for charges and interest they could have all had their money back now.

 

On the advice of the Credit counselors I wrote to all my creditors, only HSBC replied sending me a form to fill in and send back, I did so and have had no correspondence from them since until this letter demanding all the money back which I can't afford to pay!

HSBC wont talk to me about it saying I no longer have a credit agreement with them.

I'm so worried its making me ill!

Credit Counselors wont help me any more as they say I have to be registered as self employed, I have been told not to do this as I simply don't earn enough on a freelance basis as yet and to advertise more and get more work before I register.

I'm so stuck!

Has anyone any advice? I've just finished a job and sold some items on ebay and can just about afford to give them a couple of hundred which will hardly make a dent. Will they just demand the lot back? What happens when I say I can't afford it?

Sorry for rambling. I'm very scared.

[cerberusalert]

First send them all a CCA request to see if they are entitled to collect these debts & if they are enforcable. If they fail to provide them within 12+2 days or the CCA is unenforcable you can legally withold payment until they do. Send them recorded delivery enclosing a £1 postal order in each. When you get a reply, scan it & remove any identifying details and post it back here where we can have a look at it. We'll advise you from there. Start a new thread for each one;

 

Dear Sir/Madam

 

Re:- Account No: XXXXXXXX/Your Reference Number: XXXXXXX

 

This letter is a formal request pursuant to s.77/78 of the Consumer Credit Act 1974. I require you to provide me with a true copy of the credit agreement relating to the above account, together with any other documentation the Act requires you to provide.

 

I expect you to comply fully and properly with this request, within the statutory time limit. You are reminded that should you fail to comply with my request, the provisions of s.77 will apply.

 

If it is your view that you are not the creditor, s.175 of the CCA 1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties.

 

Your attention is drawn to ss.5(2), 3(b),6 and 7 of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR).

 

I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.

 

If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.

 

You should also note that I will only discuss this matter in writing and should it be your intention to arrange a “doorstep call”, please be advised that under OFT rules, you can only visit me at my home if you make an appointment and I have no wish to make an appointment with you or any of your associates.

 

There is only an implied license under English Common Law for people to be able to visit me on my property without express permission; the postman and people asking for directions etc (Armstrong v. Sheppard and Short Ltd [1959] 2 Q.B. per Lord Evershed M.R.). Therefore take note that I revoke license under Common Law for you, or your representatives to visit me at my property and if you do so, then you will be liable to damages for a tort of trespass and action will be taken, including but not limited to, police attendance. (Optional addition)

 

I look forward to hearing from you.

 

Yours faithfully **Edit to suit**

Print name do not sign

[cerberusalert]

Don't worry, even if they are enforceable they cannot make you pay more than you can afford even if that's only £1 per month. As I said above when you start getting them back & we've had a look at them we will be better placed to advise.

 

Under no circumstances speak to them on the 'phone, everything must be in writing from now on, that way it'll leave a nice paper trail which they can't deny.

[Lou-Hoo]

Hi. Thanks for that...sorry for being a bit dense but does all that mean that they aren't allowed to ask me for the money back like that?

I'm so scared they'll take me to court, I don't want that on my record in the future.

I'm so mad that I sent the form back to HSBC saying I'd pay them 'X' amount and couldn't afford any more (and that's not an exaggeration!) and then they demand all the money back at once!

[cerberusalert]

Any possible court action is a long way away yet, first they have to prove a debt exists & that it's enforceable, that's what your asking for them to do in the letter above.

 

Even in the worse case scenario a CCJ is a civil matter not criminal and only stays on someones credit file for six years. Besides we're getting ahead of ourselves here, just send the letter and we'll see what they come up with.

 

Incidently, a creditor normally sells the debt onto a debt collector & they would rather have a minimum payment than take court action.

 

I'm so mad that I sent the form back to HSBC saying I'd pay them 'X' amount and couldn't afford any more (and that's not an exaggeration!) and then they demand all the money back at once!

You haven't done any wrong in offering what you can afford. They normally will demand the full amount at first, but they will accept lesser payments. They may regularly try to get people to keep increasing the payments, but you have to stand up to them & when you do they'll back down even though they do have a tendancy to act like churlish children & spit their dummies out whilst throwing their toys around.

[Lou-Hoo]

Thanks for your help you've made me feel a bit better.

[Lou-Hoo]

Hi cerberusalert sorry to keep on at you but I've just read this letter from MCS again and it says if I don't pay up within 7 days they may start legal proceedings...if I send them the above how do I know they'll get it/deal with it in those 7 days? What happens if I don't pay after 7 days? It sound like they can take me to court

I know you said not to call them but I'm tempted to just to say I can't pay it and offer them a nominal sum. I can't record the phone call either.

Thanks for all your help

[cerberusalert]

Even if they tried to get a CCJ they couldn't obtain one overnight, there is a set protocol to be followed where you have the right to defend, see their particulars of claim and issue your response etc, this takes several weeks. Not only this, in the absence of an enforceable CCA or if there are unfair charges which have been added you could apply to have any claim set-aside.

 

Lets see what they send back in response to your CCA request before we start worrying about what might or might not happen. Even in the event that it is enforceable, creditors are loathed to apply for CCJs particularly when the debtor has no assets, it's just not financially viable for them to do so simply because in circumstances such as yours, a judge would only make an order for payment at a level which he thinks you could reasonably afford & this could be as little as £1 per month.

 

Do not telephone them or I'll slap your legs.

[cerberusalert]

I should have added in the above; have a look at that letter again from MCS & note that it's full of 'ifs & 'mays' it is designed to intimidate you into contacting them. Nothing more nothing less.

[Lou-Hoo]

HAHA! Thanks again! You made me laugh this time! I wont phone them promise!

[Lou-Hoo]

Me again cerberusalert! Being a bit Blonde!

I've just come to write this letter, who am I sending it to? HSBC or MCS? If it's HSBC who should I send it to? (Eg. payments?) Will they deal with me since they told me it all had to go through MCS from now on?

Sorry to keep bugging you! Needless to say I've never been in this position before and you seem to know what you're talking about!

[cerberusalert]

Send it to MCS.

[Lou-Hoo]

Thanks! I'm a dim wit I know! ha!

[Lou-Hoo]

hi cerberusalert me again, sent the letter over a week ago and they've completely ignored it. Got another letter this morning threatening bailiffs. Can they do this if I don't own a home? I live with my mum. It's really scarin me now.

[cerberusalert]

Don't worry, the letter will be full of 'ifs & mays' again, besides they can't send in bailliffs without a 'warrant of execution' & to get that they would have had to obtained a CCJ & even then you would have to have defaulted on the payments on that. Just ignore that letter, they've still got a few days left to comply with your CCA request. Besides, that last letter you've received has probably crossed in the post with your CCA request.

[Lou-Hoo]

I doubt it. I sent that letter the day after I received the first one and this one is dated tuesday. What's more the PO don't seem to be able to track my letter that I sent recorded.

I can't have the bailiffs coming, my mum is a pensioner we have very little as it is.

"A warrant of Execution" why does it feel like they are about to execute me? It would probably be easier if they did!

[Lou-Hoo]

It turns out it hasn't been delivered yet even though it was 2 weeks ago! I might send another. Do you think I should? How long does it take before someone is banging on my door trying to take my mums stuff?!

[cerberusalert]

How long does it take before someone is banging on my door trying to take my mums stuff?!

Read post #15 again. They can't take anything let alone any of your mums stuff.

[cerberusalert]

It's only about 9/10 days since you sent that letter. Sometimes the PO take a while to update the track on their site & also it isn't always marked as delivered because they 'bulk sign' for mail at the other end.

[Lou-Hoo]

Hi me again!!! (Sick of me yet?!!! lol)

 

Ok they STILL haven't received the letter, I've been doing a bit of research on the other threads and found that Companies house states MCS has no employees in the UK. Maybe there's actually nobody at that 'office' to receive the letter? Or perhaps they only like envelopes with money in them!

Anyway I want them off my backs, I'm borrowing the money from a friend to pay the debt back, but I can only pay a small amount now (the rest at the end of the month) so ... do I write with a cheque for this initial small lump sum and then send them the rest at the end of the month or what?!

Also can they charge me interest on this debt?

Once I've payed them back I'm going to close my account and complain like hell and try and claim my charges back! ARGHH! HSBC (Horrendous Sodding Banking.....er......cretins! lol)

[cerberusalert]

Have you thought of making them a full & final offer of payment for a reduced amount?

[Lou-Hoo]

How do I do that and can they not claim the lot back anyway? Or keep charging me?

[cerberusalert]

Normally when a debt is bought by a debt collector the pay around 10% of the value of the debt so are inclined to accept a reduced offer to clear it.

 

If you write to them and offer them say 50% as a full and final payment. You could add that you think this was fair because if you decided to reclaim unfair charges which have been added, the original debt would be reduced considerably.

 

If they agree everything must be in writing and they must state that the a/c will be fully satisfied and will not be passed or sold on to another DCA.