Re: Debt Management Plan

[Guadge]

With reference to my posting in the 'Everything else' forum, I have had no further correspondence with HSBC regarding the charges on my account, having sent out the initial DPA letter. However, I hadn't, as previously thought, defaulted with them, as I received my default notice this morning. I don't know if that is coincidence! I am taking your advice, and 'sitting tight', but I also have an account with First Direct, who owe me almost £700 in charges. I have written to them asking them to refund my charges, but am concerned, as they are obviously owned by HSBC. Do you think I should persevere with them, or let that one go?

[BankFodder]

Do you know how much you are owed by HSBC? Have you any statements at all? How long is there to go for the DPA request? Did you send the £10

[Guadge]

I am owed almost £700 by First Direct. I didn't send the £10. I sent the DPA letter to HSBC on Monday of this week, and I haven't a clue what they owe, but I would guess at about £4000.

[Guadge]

Since posting in this forum, and the 'everything else' re the debt management plan, I have spoken to the debt management company, and they have advised that HSBC usually pass the case to a third party to work on thier behalf, and they often put an order on the house, but rarely ask that you sell the house. And we would have paid them back through the debt management plan before we came to sell anyway. We have been advised not to touch the current account or the loan, as all negotiations and payments will go through the DM company.

However, every month, HSBC try to take the previously agreed payment from our current account, to pay the loan monthly payment. This always bounces, due to insufficient funds, and they charge us for the DD bouncing, and then being overdrawn. I have requested they cancel the DD, but received a letter today saying they can't. But there is no point keeping it, as we have no money in the account to pay it, so are just getting charged and more and more overdrawn. Have you any advice in this complicated case? I don't know whether to threaten them, saying I know that the charges are unlawful, as obviously we do owe them money. But to just keep charging us seems so unconstructive!! They are receiving a much smaller monthly payment through the DM company.

[Guadge]

I have sent HSBC a letter, pleading that they stop charging, at least, as the direct debit for the loan repayment will never be honoured, and pointed out how unconstructive it is. I have also stated that I know it is unlawful for them to keep applying charges, so maybe this will help. Other than that, I don't know what to do next.

[BankFodder]

Sorry. I've been away for a bit and busy. You case is gettng a bit complicated.

Any chance you could pm me a brief summary and chronology so that I can see it all in one chunk. This is part of the problem of everything getting spread over several threads.

[Guadge]

I have just done so. Thanks again.

[Guadge]

Re the HSBC account; there is only one joint account. We can't close it, as we are overdrawn. I tried to stop the DD payment to the loan online, and received a letter stating that they won't cancel the DD as this is how the loan is to be repayed. I am not sure how much in charges they owe. I have sent off the first DPA letter, but estimate about £4000.

[BankFodder]

Get the info, total it and come back here.

If you stop the DD how will you repay the loan?

 

What is the date of their letter refusing to cancel the DD?

[Guadge]

The date is 15 March 2006. We are making reduced payments to both the overdraft and loan, through the debt management plan, and have been since November 2005. HSBC have not agreed to this offer, but we can't afford anymore, so refusing the direct debit does nothing but increase the debt. I will let you know when I receive details of how much I have been charged.

[Guadge]

Although HSBC haven't responded to my initial DPA letter, received a letter from them this morning stating that hey are withdrawing my overdarft facility. I don't see how, as they know we are already with a debt management plan, and have no funds to pay it back. I have replied, pointing this out, but do you think it will affect my case, or should I still go ahead with the step by step plan?

[Guadge]

HSBC just phoned and said they would charge me £1 per statement going back 6 years. I said I wouldn't pay it, but they still need to send me the information underthe DPA. She then said she'd charge me £10 out of courtesy (I forgot to send the £10 charge off when I sent the DPA letter) and so I chanced it and refused anyway. So she said she'd order the statements for me immediately!

[Guadge]

Hello - I got my statements this morning, and the amount owed comes to £2729.50 + interest. Bearing in mind they are asking me to pay back my overdraft (which I can't do as am on a debt management plan) and won't cancel my direct debit to the loan, so keep charging me, do you think I should still go ahead with the preliminary approach letter?

Thank You for your help.

[Guadge]

Hi - I am on a debt management plan along with my husband, as our financial situation changed recently, and we owe HSBC bank a loan of £18,000. The debt management company pay HSBC a reduced amount each month, but HSBC still try to take the agreed original amount from our joint bank account each month, which inevitably bounces, and we get charged £30 each time, which is more than the reduced payment we are making. Hence our debt just gets bigger each month!

I have written and asked if they will stop the direct debit, and the charges, and they have refused twice. I got a letter back this morning saying they appreciate our situation, and are 'sympathetic' but regrettably will not stop chraging us! How constructive??

[Guadge]

Since this last post, I sent the DPA letter, and with my statements, received a letter asking us to pay back our overdraft immediately as HSBC are withdrawing the facility. I wrote back saying that of course we couldn't as we are now on a debt management plan. I have just sent my preliminary approach for repayment to them, word for word, but added the following paragraph;

'It seems to me that it is in both our interests for you to pay this money back to me as soon as possible, so that I can then repay my overdraft facility to you, as requested, make a substantial payment of my bank loan with you, therefore reducing the monthly payments. That way, I will be able to afford the monthly repayments to my loan without the assistance of the debt management company. It will be beneficial to both parties'

 

I know this is a slightly more complicated case than others, but do you think I will have a leg to stand on, if it does get as far as court?

Thanks again for your help.

[Guadge]

I have just sent my preliminary approach for repayment to them, word for word, but added the following paragraph;

'It seems to me that it is in both our interests for you to pay this money back to me as soon as possible, so that I can then repay my overdraft facility to you, as requested, make a substantial payment of my bank loan with you, therefore reducing the monthly payments. That way, I will be able to afford the monthly repayments to my loan without the assistance of the debt management company. It will be beneficial to both parties'

 

Sorry - I seem to have two threads going with the same subject on, now. I just wondered if someone can help advise whether I have done/am doing the right thing?

Thanks

[dave]

Not a problem.

 

Yes, I think you are doing the right thing.

 

Is your overdraft more than the amount they owe you?

 

If so, then great.

 

If not, then also great - it seems that they have pushed themselves into a corner - they cannot hurt you any more financially, so therefore, to have the £2.5k back can only hurt them - in so much as that is 2.5k that they can no longer charge you interest on.

 

Good luck.

 

PM me if you need more reassurance - I think you are on the right track.

 

It's time they realised that they can no longer walk all over their 'customers' (also known as 'cash cows').

[Guadge]

Thank You!! I am sort of making it up as I go along, and a bit reluctant, and nervous, but at the same time, if I could get the money back, it would help us so much! They owe me £2750 in charges, and our overdraft that they want back is £1800. We owe just over £17000 in a loan, that we are paying back through a debt management plan, but HSBC refuse to accept this, and just keep trying to take out the original monthly repayments from our account. These obviously bounce, and we get charged for the privelege, and for having an unauthorised overdraft! I will let you know how I get on, anyway.

Thanks again.

 

 

Merged threads, please keep to the same one.

[Guadge]

This topic was closed on 03/06/19.

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