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First Direct - combined debt - sent to MCS for collection


lochlisa
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I have 3 accounts with FD.

 

Credit card, current account, loan account.

 

My credit card account is now £900 in credit due to a major refund.

 

My current account is within its £250 o/d limit

 

My loan account is in default by 2 months payments

 

As the CC is a Credit agreement am I correct in thinking they CANNOT use the credit balance to pay any other accounts with FD? i.e. they do NOT have the right to roll up accounts as it were but IF the credit balance was in my current account they could?

 

because I am behind on loan payments they have frozen my card so I cannot use the huge amount of credit balance on it at the moment.

 

What can I do?

 

cheers,

 

Lisa

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Hi, Lisa.

 

I think they can 'offset' your accounts, and I'm not sure what you can do.

 

I'll have a look around.

 

Regards.

 

Scott.

 
 

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they have just moved the credit amount this morning to my current account saying that they have authority to do so.

 

I think they can't as a credit card is a regulated account under Consumer Credit Act and cannot be subjected to 'free' movement of funds at their request.

 

any thoughts please?

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  • 1 month later...

FD have terminated my Current, Credit card and Loan account.

 

The payment I was making to the loan account is now 'bouncing'.

 

Have now had letter from MCS telling me I should deal with them ( I know they are actually FD in disguise ).

 

What is the legal situation now that they have terminated my account?

 

thanks,

 

Lisa

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  • 2 months later...

It would appear that they close all accounts then bundle any loan or credit card debts into being an overdraft on the current account.

 

This way they think they are able to bypass the CCA 1974, I am not sure if this is legal or they are chancing their arm.

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  • 1 year later...
  • 1 month later...
It would appear that they close all accounts then bundle any loan or credit card debts into being an overdraft on the current account.

 

This way they think they are able to bypass the CCA 1974, I am not sure if this is legal or they are chancing their arm.

 

How can they close all accounts and yet have an overdraft on a current account?

 

I have a few accounts with First Direct and haven't yet had any problems with them, but you never know do you.

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  • 3 months later...

They've closed my current account this morning- just about to start a separate thread. Have had some serious financial issues in the last 18 months, with my wife having cancer and me losing my job due to having to take time off. The bank have been made aware of this on several occassions.

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  • 7 months later...

hi all, I defaulted on First Direct Loan and a FD credit card because of ill health.

 

FD have lumped both debts together and sent to HSBC in-house collection people MCS who are now demanding payment.

 

This is not acceptable, is it? How can they be allowed to consolidate into one account?

 

I have an incurable life threatening illness - what can I do about this please?

 

thank you

 

Lisa

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matters not

 

dca's have no powers anyhow.

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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This is something that HSBC likes to do. Usually they would insist you have a Managed loan.. but presumably because of your illness they are not able to do this. Both debts are covered under the CCA1974 so I imagine that yes, they can combine for collection purposes.

 

Questions:

 

Are there any charges (default/penalty/late payment) for either loan or cc.

Was any PPI added to either loan or cc

 

Have you made FD aware of your illness and lack of income due to this?

 

Do you have any assets, property, etc?

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

 

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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two threads merged

 

please keep to one thread per debt.

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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I have a property with zero equity and my car and thats it.

 

Should I offer £1 per month and that is it?

 

There is no PPI on anything and I am unsure on penalty charges etc. I assume I will need to SAR to First Direct to find all this out?

 

thanks again and sorry for the double thread, my head is all over the place at the moment

 

Lisa

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Yes, if you require statements and other data regarding your accounts then you would need to send SAR. This will cost you £10.00 - you will find a draft letter in the CAG library, which is linked at the top of each screen.

 

It might be an idea to write to Head office, explain your situation and offer the £1.00 at the same time - although this does worry me a little as it is likely that once they know of your terminal illness they might attempt to put a charging order on your property - lack of equity or not. I will flag your thread for more imput.

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

 

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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http://www.consumeractiongroup.co.uk/forum/content.php?827-Examples-of-unfair-treament

 

It has also been suggested that once you have your SAR data, you look into whether you have been a victim of unfair treatment by the bank.

 

Have a read of the article in the link above and also all the BCOBs articles that are listed in my signature and highlighted in green :)

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

 

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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  • 11 months later...

Hi guys, me again, still hanging on and still paying MCS a £1 per month.

 

I can confirm that they have lumped all my accounts (credit card, unsecured loan and current account) into one for repayment purposes and classed it as an unsecured loan on my credit file.

 

Now, am I not right in thinking that an unsecured loan is just that, not secured on anything? So, can they really go for a charging order on a property with no equity?

 

I am going to be paying this £1 per month for the next 8000 months. Should I just sit back and let it happen at £1 per month?

 

thanks,

 

Lisa.

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did you ever fire off any CCA's ?

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Hi guys, me again, still hanging on and still paying MCS a £1 per month.

 

I can confirm that they have lumped all my accounts (credit card, unsecured loan and current account) into one for repayment purposes and classed it as an unsecured loan on my credit file.

 

Now, am I not right in thinking that an unsecured loan is just that, not secured on anything? So, can they really go for a charging order on a property with no equity?

 

I am going to be paying this £1 per month for the next 8000 months. Should I just sit back and let it happen at £1 per month?

 

thanks,

 

Lisa.

 

Unsecured is just that.. unsecured against any asset. However, it has been known for creditors to apply for a charging order, but they can only do that if they issue a claim first and then win.

 

If at any time you are in a position to increase your payments, then do so. If they are not going to get anything back then I don't think it would be in their interest to try anything with regard to your property. But whilst you are making the token payment then you are acknowledging liability for the debts.

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

 

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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Okay, My current account was in credit, my credit card was in credit (due to a refund) and my loan account was behind.

 

So, they combined and offset the loan account balance with the credit card credit balance, and my current account credit balance.

 

The unsecured loan paperwork I have, and it looks ok.

 

It seems that the best thing to do is lie low and keep paying the £1 per month - yes?

 

Lisa

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  • 4 months later...

hi all, me again.

 

MCS are now telling me that the £1 per month agreement has expired. Funny that as I am paying £1 per month automatically by standing order, and they are still accepting it.

 

Do I just keep plodding on and paying this £1 and leave it up to them to take any further action should they be so inclined?

 

thanks, Lisa

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yep doing ok

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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  • 1 month later...
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