MCS - HSBC in-house collection agency chasing for UK debt in New Zealand

[ahill]

I live in New Zealand but for some years maintained a legacy UK bank account/ loan facility in the UK with First Direct just in case. Around three years ago I used 9,000 GBP in an emergency (handling my brother's accidental death in South Africa).

 

I then paid some off each month with the interest clicking up. 18 months ago FD decided that it didn't like me having the facility and I happily converted it into a loan account and paid 250 GBP each month but had to do this through a currency transaction manually every month with the associated costs.

 

I missed a payment and immediately started getting hassling phone calls and threatening letters - so I decided that I would wait and see what happens because FD are a UK bank and I have no need of a good credit rating there as I have no intention of ever returning to live in the UK.

 

I have now received a letter from Metropolitan that states 'Failure to contact us could result in your account being referred to debt collection agent in the country in which you now reside who may call on you to collect payment'.

 

Should I be worried about this? The outstanding debt is 6160 GBP. At the moment I have no intention of contacting MCS or talking with them on the telephone but are they a. entitled to chase the debt here in New Zealand and b. likely to chase the debt in New Zealand

[Bazooka Boo]

IMO, and it really is my own opinion, I would ignore them.

 

DCA's have absolutely NO legal rights to do or chase anything, they are simply silly little immature boys and girls intent on conning people out of money.

 

If HSBC want their money then they would demand it from you direct, they wouldn't use a silly little tin pot third party clown outfit to beg on their behalf.

[cerberusalert]

I'd ignore them until a DCA in NZ contacts you, it may be a few months and will probably be a company like Creditcorp then the fun can start.

 

Believe it or not HSBC did you a big favour by converting the overdraft into a loan because it now gives you full protection of the Consumer Credit Act 1974 which you didn't have with an overdraft.

 

Did you sign any documentation when the overdraft was converted?

[ahill]

Going back over the years I can't find a change to a loan - I haven't actually used this account in a few years but it originally started as a revolving loan facility account in the 1980's when First Direct first appeared. There is no reference on the paperwork to a loan, just an account - but this is still of the revolving credit facility type.

 

It could be entertaining if a local collection agency come to call - I have a very lovable dog - a mastiff crossed with something nasty that can be quite intimidating at the car door to the uninvited!

[cerberusalert]

If needs be at a later date you could send the bank a SAR which will throw up details of what was agreed, copies of statements etc & help you determine what unfair charges they may have added & if there was any PPI you could reclaim + Statutory interest @ 8% But as things stand now there is very little the bank can do.