HSBC demand for O.D.

[MrsSkint]

Hi everyone

Received this letter from HSBC yesterday. We have an overdraft of approx £600 and were claiming approx £2,000 in bank charges. We are paying them off £10 per month as the account was in dispute - we did this as a "goodwill gesture".


Before I write back to them, can anyone advise if claims are still in dispute or do we have to pay all of the £600 upfront? We are not classed as a hardship case unfortunately, even though we don't have any disposable income. (HA - that'd be a novelty)!

As always, thx for the help. :reindeer:

G xxx

[MrsSkint]

Re: HSBC demand for O.D.

I'm an idiot - only the second page scanned - will try again (D'oh)

[MrsSkint]

Re: HSBC demand for O.D.

Right I think that's it (fingers crossed). Could someone please have a look and advise whether I tell them to naff off, pay them a bit more each month or is there anything else I should do.

Many many thanks x

[EXC]

Re: HSBC demand for O.D.

Before I write back to them, can anyone advise if claims are still in dispute or do we have to pay all of the £600 upfront?
G xxx

IMHO debts that are made up of bank charges should still be considered as 'in dispute'. The 'in dispute' guidelines are the OFT's and they have not (yet) dropped their investigation into bank charges.

I did ask the OFT about this and got this response back which, although not definitive, seems to suggest that 'in dispute' still applies pending their forthcoming announcement.

As I understand from your email, you have two principal questions:

1. Whether consumer debts made up of unarranged overdraft charges could still be considered to be "in dispute"?

Whether or not a particular complaint could be considered to be "in dispute" will depend on the individual circumstances of the case. Legal advice may need to be sought on a case by case basis. It should be noted however that the the OFT's investigation into the fairness of the relevant terms is currently on hold. A further announcement will be made in December.

[MrsSkint]

Re: HSBC demand for O.D.

Thank you EXC! - will write a letter to HSBC then and just keep paying them a tenner a month xxxx

[EXC]

Re: HSBC demand for O.D.

Probably worth waiting for someone else to advise on exactly how to respond - I'm hopeless on individual claims.

[MrsSkint]

Re: HSBC demand for O.D.

ok will do. Thx

[Amethyst]

Re: HSBC demand for O.D.

The account is still in dispute as indicated by the information EXC had back from the OFT and in truth as you are complaining of the high level of charges on the account. You need to ensure that the amount you are repaying on this matches that shown as affordable on your Income and Expenditure sheet (ie taking everything else into account) so if you can increase it a little then this might stave them off a while longer until we know whats happening. In the event the legalitys of charges arent sorted to our satisfaction then you need to be in a position where the debt is being repaid and they have no requirement to take any proceedings against you.

[MrsSkint]

Re: HSBC demand for O.D.

Thanks Ame

I've typed up a letter and attached my I and E sheet. Will send recorded delivery today.

Glo xxxx

[MrsSkint]

Re: HSBC demand for O.D.

Thanks for your advice Ame, I spoke to HSBC today and got things sorted. We're paying a little bit more per month but it will keep them off our backs for a while xxx