Advice with Metropolitan Collection Services please.

[Zephy]

Hello everyone,

 

I’m new to the forum and would really appreciate some much needed advice on my current debt situation.

 

Apologies if I have posted this in the wrong section I wasn’t sure where to start.

 

I have 2 debts which I need to get to a manageable amount ASAP.

 

I have a £700 debt with Very Catalogue – I 1st ordered from the site around July/Aug 2010.

 

Secondly an overdraft of £750 with HSBC.

 

Recently Very have started to add additional charges and interest (which I knew would happen)

but I have found myself in a less than comfortable position to pay the amounts that they are asking for.

 

In June 2010 I was offered a decently paid job and jumped at the chance.

I paid off all of my other debts quite quickly to get them out of the way before I would be hassled for the 2 above debts.

I then moved into a shared flat and naively used my Very account to order furniture and such as at the time I would easily have been able to make the repayments.

 

However, I was given the choice in July this year to either terminate my employment or to reduce my hours,

I had no other job options so I chose to reduce my hours and now earn around £650-£700 each month after tax.

 

These are my usual monthly outgoings:

Rent: £225.00

Bills: £150.00

Food/Toiletries etc: £100.00

Phone: £20.00 - £30.00

Credit card payments: £25.00

Transport to work: £40.00

 

I’ve had a letter from Very (1st debt recovery) this week and they have phoned me around 15 times already

but I’m refusing to speak to them over the phone just yet.

 

I can’t afford to pay what they are asking at the minute and I know with the interest rates the amount is going to grow pretty substantially

if I can’t agree on a smaller payment rate.

 

Similar situation with HSBC. I was sent a letter from their Collection agency asking me to simply:‘‘Please Call Danielle on the number below’’

Which I did and was told she was unavailable.

 

They couldn’t talk to me about anything regarding the account and just passed me from person to person

until I was told id have to contact HSBC directly at which point they confirmed my address details,

hence I was a bit confused by the purpose of the letter.

 

Id just like some advice on what you think the best course of action would be

as my debts haven’t spiraled out of control yet but I can see it happening soon enough.

 

Id say I have on average around £100 of ‘disposable’ income each month and was thinking of making an offer to repay £50 to each company each month.

 

I haven’t made any payments to HSBC as of yet as I was under the impression my account had been changed to a graduate interest free OD

but apparently they decided it wasn’t to be.

 

I have made regular monthly payments to Very over the course of the last year and have only more recently found it difficult to pay the balance in full

 

Does anyone have any dealings with this type of thing and do you think it would be something they would likely accept?

 

Im just finding it difficult to figure out where to start.

 

Regards,Zephy.

 

.

Edited October 25, 2011 by Zephy

[Bazooka Boo]

OK, welcome to CAG, others will be able to advise you as and when they come on line.

 

The very account is easy, what is the state of play with this at the minute? How much do you owe them, and have they sent you a default notice, or a termination notice, have they demanded the FULL balance owing?

 

HSBC how much do you owe them is it above £750? And is it for a current account an overdraft a loan?

 

You need to keep EVERYTHING in writing, DO NOT speak to them on the phone, you MUST have a paper trail of evidence.

 

Get all of the paperwork you have together regarding both debts, and start to maintain a diary of events, especially regarding their telephone harassment, if they ring and you answer, then laugh and hang up, or tell them "everything in writing" then laugh and hang up.

 

You do not deal with financial matters over the phone, unless you are able to record your calls then you have no evidence of that call ever taking place least of all the content of it.

 

And finally, if you can paragraph your posts it makes it a lot easier for people to read.

[Zephy]

Thanks for the quick reply.

 

My very account is currently just racking up interest ontop of what I owe,

I am making payments but they arent covering the total with interest.

 

 

I will have a good read of the letter I received today from them later as I dont have it available now,

I dont think it is a final total payment request as its the 1st one i have received

 

My HSBC debt is a student OD which they have withdrawn and as such they are requesting the £750.00 repayment

I will definately be keeping everything that I receive in the post and will start to keep a diary of calls so thankyou very much for that advice

 

Initially I had no idea how to paragraph my posts, just had to look it up thanks

[Bazooka Boo]

Your welcome, and just for further info, £750 is the min limit they can make you bankrupt for, not saying they ever will, but just so you know and have it in your knowledge bank.

 

You could ask Very to stop the interest as the payments are not covering it, if they refuse then it would be unwise to pay any more than £1 a month.

 

Once they default & terminate the account, then they can add no more interest or charges.

 

Let us know what the letters say later.

[Zephy]

Hi again,

Ok Ive had a read through the letter and to be honest it really doesnt seem to be a massive problem at the minute

but im aware of how easily these things can spiral out of control.

 

Very have sent me a letter from their Arrears Collection Department at Sandringham House.

 

 

It states that:

"Your account is in arrears,

if you do not bring your account up to date immediately you will incur a further admin charge of £12

and any special interest rate offers you have on charged items may be disqualified".

 

It goes on to say that they would "advise you to contact our Payment helpline ...if your are having difficulties making payment".

 

Would you advise contacting them to attempt to agree with them a payment plan of sorts as I havnt contacted them as of yet to state my situation

, but have scraped together enough to pay around 2/3 of what i owe for this month.

 

My HSBC account is somewhat of a strange one.

I havnt actually had any contact from HSBC but received a letter from APEX discovery solutions, basically a credit collection agency working on their behalf.

I was suprised i hadnt heard from HSBC up to this date but i found out that Apex were 'hired' to basicaly track me down

(even though HSBC did have my out of term address but hadnt contacted me there)

 

I called Apex and they just asked for my address details and phone number

(I stated i didnt have a phone as I didnt want them calling me night and day as Very already are),

but ive still received calls from numbers which ive now determined are from HSBC.

 

I asked to have some details of why Apex were calling, and in what regard but was advised they coulndt speak to me about the account.

(after some research I concluded it was about my HSBC overdraft).

 

Im totaly baffled as to where this is heading as the call from Apex was over a week ago and HSBC still havnt contacted me by post or email.

 

Im worried someone will just turn up on my doorstep or ill have a court summons without really having a chance to figure out why

or have a chance to try and rectify the situation.

 

Many thanks in advance for any help, its much appreciated.

[Bazooka Boo]

OK, first I will try to allay your fears over court and some random stranger turning up on your doorstep.

 

Court is a lifetime away if at all, there is a lot of hoops they will need to jump through before any such legal action can be taken regardless of what their puerile missives may spout, all their letters are computer generated and printed by the hundred thousand a week, their threat's of "imminent legal action" and there "official warnings" are purely psychological rather than actual, once this is ralised their letters cease to have any effect or credibility.

 

As for a random stranger turning up and attempting to discuss financial matters on your doorstep, er, no thank you! Not only do they need to make an appointment with you, which I am certain you have no desire to make? They will have less legal rights than next doors cat to be on your property for a start, they are not bailiffs, they are simply unqualified, untrained, canvassers on commission to get as much money from the unknowing as they can, you can use what ever words you like to tell them to get off your property, as long as you offer no violence then the law will be on your side, once you have told them to go away if they remain then you can call the Police and report a trespasser who may cause a breach of the peace.

 

OK, the Very account, rather than ringing them, because you won't have any record of the call or it's content, unless you can record your calls?

I would write them a letter outlining your current financial situation, there is no need to go in to great detail just explain that you are not in the same posiition financially as you were when you took out the agreement, therefore you wish to offer a sum of payment which is suitable to you for the forseeable future until your circumstances change.

 

If you have their bank details then set up a standing order, as they will empty your account if you use a direct debit. Plus you do not need them to agree to your offer, if you just advise them what it is you'll be able to pay and pay it each month then that is more than satisfactory.

 

Keep a tally of the charges they continue to add, then these can all be reclaimed when they terminate the account, does the letter advising you of your arrears give you a date by which to rectify it, and explain what will happen if you don't or cant? I'm just trying to work out if it is a proper default notice (DN)

 

HSBC.

Until they inform you 'in writing' that they have passed the account to Apex, then ignore Apex completely, if HSBC cannot show a modicum of manners informing you they have instructed to deal with your account, then reciprocate their poor manners by ignoring their chosen third party.

All apex need is http://www.consumeractiongroup.co.uk/forum/content.php?428-General-debt-letter-if-you-know-nothing-of-the-debt

Where it says insert company name insert Apex, you can edit another little para on their and state that their client has not informed you that they have been instructed to collect any such debt, therefore until you receive the correct legal documents informing you of this you will continue to deal with their client direct.

 

Stay OFF the phone, keep everything in writing, maintain a diary of events, log all the letters and calls you receive, and keep a copy of everything you send.

Any letters you send out should either be 1st, or as I prefer 2nd class post BUT obtain "Proof of posting" from the PO counter, ONLY important docs that you send, ie, CCA's SAR's LBA's need ever be sent using the more expensive recorded or special delivery, proof of posting is free, and as you will see whan you look at all of their letter, they only use 2nd class TNT or walksort post, even for all the letters they purport to be "Urgent"..

[Zephy]

Thanks again for your reply,

 

 

after reading through other peoples posts and replies im definately begining to understand my rights and im not as stresses out as I was previously.

 

I wont be making any arrangements by telephone as they always seem to drag you into doing something rediculous that you didnt agree to in the 1st place.

 

Im thinking of just turning my phone off as they have called me around 30 times since the 21ts oct

 

Im going to send the letter outlining my circumstances along with the letter to advise them not to call me on the phone too

 

The letter from Very is from their 'Arrears Collection Dept' - and just states that my account is in arrears.

It gives me a summary of the ammound due Immediately and the next payment date by which I have to pay the following months ammount.

 

It goes on to say that 'if i dont bring my account up to date immediately a further admin charge of £12 will be added

and any special interest rate offers will be disqualified' and continues with 'You now run the risk of adversely affecting your credit rating'

 

Thats pretty much the sum of it,

theres also a bank Giro credit form at the bottom of the slip which I have no idea how to use,

Is that just for one off payments or is it linked with a DD or SO?

 

Im going to try and find out their bank details as they dont seem to be included on the Bank Giro,

once ive found out these im going to send both the letter in the post.

 

Im going to 'ignore' HSBC for now as i havnt actually spoke to anyone about the debt

and havnt acknowledged it so far, so ill wait until HSBC actually get in contact.

 

 

Fingers crossed and thanks again

[Bazooka Boo]

OK, the Phone harassment will be because they can't get hold of you in writing, well thats what their excuse will be, so once you open up a written dialogue with them then they have absolutely no need to ring you.

 

Ignore the charges, let them add as many as they wish, your not paying those.

 

The HSBC account you need to be informed from HSBC themselves that they have got some lame third party circus to chase on their behalf, or you simply will ignore everything Apex send you, your only reply to Apex should be as I have outlined above.

 

DON'T turn your phone off, why the hell should you?

I know it is extremely frustrating and irritating to receive telephone harassment, but this is all evidence you can use against them and seek legal recourse if needs be.

If you answer and it is them just state "In writing" and hang up, if they persist then state "foxtrot oscar" and hang up, all the while logging the calls, if they are silent calls which some may well be then you have them by the short and curlys and can report them to ofcom and get them a fine.

[Zephy]

Me again, Sorry

 

Just wondering if I need to pay the money to Very into their bank account using a sortcode and account number, or whether paying online

i.e. through my Very account would be acceptable.

 

I have told them I will pay a certain ammount on the same day of each month but im not sure now if I should have specified how Ill be paying

- stupid afterthought, and I cant seem to find anything containing their Account number/sort code.

 

Still no sign of anything from HSBC, I think theyre taking the micky a little tbh.

Cheers again.

Zeph.

[Bazooka Boo]

However you wish to pay it will be acceptable, if you can use the online account all the better, or you can request their bank details to allow you to pay it via standing order, but make your request in writing so you have a record of it.

[Zephy]

Hi,

I have finally managed to get both companies into a written dialogue after sending a letter and they do seem to have stopped calling me on the phone.

 

The letter I sent was just to outline my situation and to advise of an ammount I could 'safely' pay each month.

 

Very.co.uk have since been in contact this week to state that they would not accept the offer as it does not meet their minimum payment criteria.

 

HSBC have replied with the attached letter and it doesnt seem that they have even acknowledged the letter I sent at all.

 

Both letter were sent with proof of posting over 10days ago.

 

Does anyone have an idea where I should go from here please?

 

 

Thank You.

Edited December 8, 2011 by Zephy

[Bazooka Boo]

http://www.consumeractiongroup.co.uk/forum/content.php?115-How-to-open-a-PhotoBucket-account-and-use-it-to-post-pictures-on-the-Consumer-Action-Group

 

Well keep those letters, you DO NOT need to get their agreement to your offer of payment, as Very have point blank refused due to their own mickey mouse terms, they can have the token payment of £1 a month, nothing more, just set up a standing order, and if there are any charges or fees that they have added to this account, then reclaim them.

 

As for HSBC, the same applies, except enter into their own complaints procedure and exhaust it.

[Zephy]

Thanks so much for that Bazooka, at work my PC doesnt seem to be able tohandle the platform this website is on and I cant do anything.

 

Anyhow, thanks for the link, (and to the person who made it).

 

I was really hoping to sort out the HSBC one as I wasnt expecting to have tostart paying it off for another 8 months, but never mind they are being AHoles.

 

These are the letters I received in reply, as mentioned the Very 1 is prettyself explanatory, the HSBC one I have no idea if they have even acknowledgedthe letter.

 

 

 

 

 

 

 

[Bazooka Boo]

Well the one from Very (shop direct) is a classic ignorant pathetic attempt to get you to contact them.

I would love to know what their minimum payment criteria is, that is of course if it really does exist?

 

For that immature letter, I would pay them no more than £1 a montt, have you got their bank details? If so set up a standing order and simply pay it monthly until they fall flat on their face.

 

As for HSBC, that is pretty much your standard computer printed template, sent out by the hundreds and thousands weekly, it has nothing to do with any correspondence you might have sent them, wait for as reply to your letter.

[Zephy]

Thanks for that you are such great a help.

Ill set up a standing order then and await a reply from HSBC

[Zephy]

Hi Again,

I have finally received a reply from HSBC although it isnt particularly a good one.

 

They have sent a final demant notice this week stating that they:

''have to date received no satisfactory response'' - from me, so obviously they have ignored my previous correspondence in which I attempted to set up a payment plan with them.

 

The letter continues to say that I need to pay the total outstanding ammount immediately - that interest will be added on the same basis as presently applies - and that I have 18 days to make complete payment.

Then the usual action through debt collectors/solicitors speech.

 

What would you suggest as the next course of action?

Should I just pay the ammount I said I could into the account each month or should I let it be passed on over to an agency and then pay the agency an agreed ammount?

Im not sure which would be better as either way I go about it they will trash my credit rating

And start racking up interest/charges.

Many Thanks,

Zephy.

[Bazooka Boo]

That letter is simply spat out by their computers, no one will even know you have received it, once they terminate the agreement then they can add no more charges or interest, as no agreement exists.

 

IMO whatever you have offered to pay them in your letter, just pay that and ignore anything else they send bleating about how they might do this or they might do that.

[Zephy]

Thanks for the reply again,However now I am totaly baffled!

I received a second letter which doesnt seem to make any sense at all.

It reads as follows

 

Thank you for choosing to bank with HSBC Plc

As a new customer we need to prove your identity and verify your address to ensure your security and satisfy money laundering regulations.

Unfortunately we are unable to confirm your proof of address verification.

Please could you provide different documents for each of identification and address confirmation.

Please take required documents to any HSBC branch within the next 14days.

 

This has got me very confused, why are they thanking me for choosing HSBC when I joined with them years ago, im not a new customer?Any ideas or is this a mistake do you think.

[Bazooka Boo]

Very bizarre I agree, it is perfectly possible the computer has had enough and is sending out any old nonsense ignore it,

[Zephy]

Hello,

I have a debt with HSBC which I have been trying to resolve over the past couple of months.

The debt has come about due to them revoking an overdraft facility.

I have sent a letter by proof of posting outlining what I can pay - on a continuous monthly payment.

I have heard nothing back to either confirm or deny their accepting of the payment plan but have recently received a letter from Met collection services ltd (who I believe are HSBC internal collection?) stating full repayment must be made within 7 days.

I cant make this payment and was wondering what my next course of action should be

Do I just send the letter again to MCS outlining the proposed payment plan and stick to those payments?

The letter from them also includes an online payment source where I imagine I could make payments.

If they do not accept the payment plan would the debt be passed to an external CCA?

Id really like some advice as I would like to reply in some way so that I am not being seen to be ignoring the letter.

Thanks for any help in advance it is much appreciated.

[firstship]

You are correct MCS are the nasty in house HSBC collection arm.

 

As you have made an offer of payment of what you can honestly afford,regardless that they have ignored you,just pay the amount offered direct to HSBC,and when MCS jump up and down,as they will just state you are paying HSBC direct.They will not and cannot refuse your payments.

 

The threat from MCS that they want full payment is a very standard first letter,just keep paying HSBC it will always be to your advantage

 

Regards FS

[Zephy]

Thanks for the very quick reply, I was hoping that that would be the case.

I have dealt with CCA's before and they were reasonable but I would much prefer to deal with HSBC directly so that is good news.

Thanks again,

Zeph.

[firstship]

You are welcome, FS

[Zephy]

Hi All.

 

Firstly I would just like to thank everyone who has previously helped me out.

 

I am happy to say that my debt with HSBC will be completely paid off at the end of May and I am thrilled at how simple the process was once I stopped panicking and got some great advice on here

 

I also have a 2nd debt with Very home shopping, which I have been paying off in small increments each month. They refused to freeze the interest on the account which has now become ridiculous and has doubled the amount I actually owed them in the first place.

 

I remember hearing somewhere that it is possible to claim back the charges made on the debt, is this true?

And if so does anyone please have a link to where I can find a concise breakdown of the procedures to follow to do that.

 

Many Thanks again,

 

Zephy

[ims21]

Hi

 

The charges for being over your limit or late with payment can be reclaimed together with any interest charged as a result of them.

 

Have you got all of your statements showing these charges?

 

The basic principle is to prepare a spreadsheet showing how much you are wanting back. You send that together with a letter requiring them to be refunded. More than likely they will refuse.

 

You then send them a "Letter Before Action" with an updated spreadsheet.

 

If they still refuse to pay then you sue them.

 

You would only threaten to sue if you are actually prepared to go through with it.