First Direct DN's issued for Card and Loan By HSBC - want to avoid Default if Poss.

[Jay51728]

Hi,

 

Completely new to the site, so forgive me if these queries have been answered.

 

Unfortunately I've been dealt a final Demand letter for X amounts owed for my loan and credit card. Due to Covid repayments have been tough.

 

First Direct want the full amount by the given date, otherwise default would be issued (28 days since the notice was handed 09/06) and debt would be passed onto HSBC repayments.

 

The chap I spoke to wasn't much help, I attempted to organise a repayment plan but unfortunately fell on deaf ears.

 

I want to know if there are any solutions to combat this final demand that's due on 27/06 and avoid default.

 

Any advice or help is much appreciated.

 

Thank you. 

[dx100uk]

sadly it might be better to allow it to happen, the quicker the defaults are registered the quicker (6yrs) the whole accounts vanish from you file.

you are probably not going to recover from things in the long term anyway and more problems will arise.

 

it's still with the original creditor so no worries about court or anything as OC's don't do court.

getting an arrangement in place won't stop the DN's being registered and it's better to do things by writing only.

 

these can't be your only debts, so have a look at our pro-rata letters in the debt collection section of library 

and deal with all your issues with potential debt now.

 

take control don't be controlled...it's YOUR money.

 

have you other debts?

 

dx

 

[Jay51728]

No I don't have any debts in similar situations, I've dealt with other matters.

 

Shame really, as I was hoping to come to some sort of repayment plan. The customer service was poor from FD, but will discuss it with HSBC repayment team to try and gain more information.

 

I'll be 30 when the 6 years are up, no idea what my credit history will be like in terms of applying for mortgage etc.

[dx100uk]

thats HSBC for you, though i would have expected quite a few previous letters to simply launch into DN time straight off......

how long have you had these accounts?

 

 

dx

[Jay51728]

3 - 6 months, but I've been in-between jobs & ill.

 

I did try to communicate once before but didn't provide a structure or plan.

Maybe I can discuss it with HSBC repayments if I'm able to pay it off within the 28 days but unsure.

 

The adviser was really awful in explaining the procedures.

There was quite a bit of contradiction between the letters & what they said.

[dx100uk]

i asked when you opened the accounts...

 

[Jay51728]

I've had a current for a couple of years but the loan and CC since Oct 20'

[dx100uk]

god no wonder they are not happy

[Jay51728]

Ok thanks for the 'advice'

[dx100uk]

well lets hope they don't pull their old stunt of merging everything into a 'managed loan' and dumping that as a grant OD balance like they used too.

 

given that these lines of credit are so recent i don't think you've much chance of avoiding defaults, though i hope they gave you covid relief etc, have you been paying what you can PCM to date or simply ignored paying anything?

 

they shouldn't be jumping to wanting the full balance in a Default notice without having gone through many other warning 1st.

 

even with defaults mortgage applications direct to prime lenders in the current climate are not getting refused with a good deposit behind you.

 

i hope you didnt take out the loan to pay off old debts as your comment of 'dealt with other matters' concerning debt concerns me .

 

dx

 

[Jay51728]

No I was planning to use the loan for house improvements, but due to my partner shielding due to Covid and medical issues I had to use it for other expenses to get by. I kept up for a few months then failed to deal with it. I've got no other defaults.

 

I will send a complaint though as I contacted previously and they failed to provide adequate advice. Even now, the adviser was unsure about the procedures. I did offer to pay either the CC or loan off but fell on deaf ears. I requested additional few days as the sum due was on a weekend but apparently automatically set.