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Hi,
I would like to ask for some help and opinion on the situation I'm in,
In Sept 2012, following the National Debtline's advice I withdraw authorisation on my card to address some payday loans I couldn't afford in paying at once - it was a vicious cycle. Before you judge, I had reason to go for them, after someone seriously set me up and disappeared with my money when I needed my cash.
So, I withdraw authorisation to negotiate with the companies who would otherwise charge for full amounts.
HSBC did pay out the unathorised amounts - leaving me in -900. So when I obtained a loan, even that didn't get me to have money to survive the month. HSBC then told me they cannot do anything for me.
28 days later they refunded some amounts - they did this in 6 smaller payments so it could not be identified what they refunded. There was no reference.
In the meantime they charged for OD fees (that 100-125 per month) and I successfully had those removed, twice. Someone even called me and apologised, but when I said that the issue is still not resolved - since now I can't even negotiate with anyone since HSBC sits on who is the lender, and what they refunded and why, all I was told is they'll get back to me.
They didn't so in December (15th) I went to the branch and asked them to let me pay them in installments, noting I owe the moneys they refunded. (Tbh, I used them up - yup I know I shouldn't have but after a crappy Xmas the year before, them leaving me without any money in the month of my Birthday, my family was coming to visit for Christmas etc and I needed some good time after 1,5 yrs not seeing any family.) They were nice, promising they'll look into the installments offer and let me know and they won't do anything without prior discussion not to increase the debt I have.
To the branch-visit HSBC reacted in contacting the lenders they refunded (2, as I later found out) for charge back. They were rejected by one lender (disputing my right to withdraw the authorisation) and that they started pushing on me: on Friday 11 Jan I got a letter that on Monday 14th they will debit me for it £1200 approx. Of course I had no such amount on such short notice so I contacted them and asked for installments. In February, the same letter arrived on 11 Feb, the debit scheduled for 13 Feb - no response to my request for installments. Again I wrote to them with the same request.
In March, the other lender that didn't reject HSBC made agreement with them and refunded them. This lender then immediately debited my new debit card for lateness fees of 150+ days (from 28 Sept to 7 March, the time HSBC took to decide.) This lender later confirmed to me, that HSBC contacted them for charge back not earlier than 24 December - 3 months after the initial payment and 1 week after my visit to the branch asking HSBC to let me pay HSBC, not the lender.
Just as this happened, HSBC also sent me a new letter, this time it said "as per your request we debited your account" with the full amount, also "your account is overdrawn" etc etc - they went £700 over my overdraft limit. The next day another letter arrived, noting to me they declined the direct debit of my HSBC home insurance, and charge me the fee of returned DD.
Again I replied them the same. Again no response except the number of collections. Then I wrote a complaints letter with the whole history of the case - now including how they handled the situation differently with the two lenders, telling me in one case how I had no right to withdraw authorisation, while in the other case the lender advised HSBC it's rightful so HSBC washed hands and took payment from the lender, only for me to pay for their lateness.
No response to the letter, they started sending emails with a phone number that was a 0845 IVR system to pay. They also started calling me, sometimes multiple times on a day, same IVR, to pay by debit or credit card. sometimes when I bothered going into the IVR, I could reach the point where it advises me "please call back during business hours" when it was clearly during business hours. These calls harassed multiple times a day for 3 weeks straight in the last weeks.
A week ago they sent a new letter, this time noting they will file the default. I called them again, they told me they have no record of me asking for installments - a lie - and scheduled callback. That didn't happen in the scheduled time, so I went to a branch, where I was told none can talk to me - tho all they'd have done is calling the team that didn't call me back.
Last night they called me, only to tell me that they will not enter into any settlement or payment plan with me. They refer to my level of income (which is higher than average) noting they have 2 months before they can file the default and sell the debt (and then they no longer have to deal with me!) Somehow my level of income does not prevent them from pushing for the whole amount, now £1840 with their fees mounting during the months they refused to discuss.
I took it as an attempt to 1) threaten me into paying the fees and all or 2) if I don't then HSBC can sell the debt and file the default and no longer have to deal with me disputing and asking for installments... while the case open I keep referring to how they messed up a simple situation and sat on it for months.
Today I called HSBC complaints. They simply told me the same: HSBC will not enter any agreement with me, and demand £1340 at least (amount of informal OD now) and then £500 plus occurring fees. They say they'd "very much regret" if I'd go to ICO, or Watchdog... but at the end the guy said, to shut me down, that if I have anything else to say I should tell it to the ombudsman services.
Topping this, I tried for personal loan - I moved my banking activities to Lloyds after this situation, so HSBC doesn't get my earnings, but Lloyds declines and so did a second bank. The only 'glitch' on my credit history is again HSBC, reporting in 2011 that my account went into informal overdraft - for which I cleared within the 30 days including paying the fees they had for informal OD. Still they report and Complaints-guy told me today, they "are entitled to report every late payment as well as to protect themselves and sell the debt, and file for default." I maintain a credit card fine, have 5 clean accounts, had 8 inquiries in the past yr, 1 other loan being paid fine. When applying for a loan, I applied for debt consolidation and included the other loan amount. Seems the only thing I can get is credit cards, those no matter how much I applied for don't get declined. (Makes me wonder if situations like this, and ppl not getting help when they need if ever once they had a late repayment in life, is why so many ended up in credit card debt.)
Sorry for the long story. Any advice would be helpful - besides what I know, that my only way to protect my credit history is to pay the £1340 at least, within a month. If I'd get the default, I'd lose my job so that will be my first aim (the company I work for is that regulated.) In my opinion the whole situation is to ensure the first 6 months get covered up where HSBC was quite "liberal" in handling the situation, to say the least. What do you think?
(PS - in my somewhat stressed and anxious state now, please be nice. I'm not someone who lives on loans, I ended up without a home 1,5 yrs ago when I needed the payday loans, and I repaid a tremendous amount of stuff. Again, my payment records are almost clean and I have a 814 public score with Callcredit and Equifax, 683 for Lenders, 8 closed successful accounts without any lateness occurred, and 6 open, with only HSBC showing "1" in 2011. No court actions, no insolvencies, and I'm on ER ever since I moved to the UK. This disputed occurrence is not yet reported by HSBC.)
I would like to ask for some help and opinion on the situation I'm in,
In Sept 2012, following the National Debtline's advice I withdraw authorisation on my card to address some payday loans I couldn't afford in paying at once - it was a vicious cycle. Before you judge, I had reason to go for them, after someone seriously set me up and disappeared with my money when I needed my cash.
So, I withdraw authorisation to negotiate with the companies who would otherwise charge for full amounts.
HSBC did pay out the unathorised amounts - leaving me in -900. So when I obtained a loan, even that didn't get me to have money to survive the month. HSBC then told me they cannot do anything for me.
28 days later they refunded some amounts - they did this in 6 smaller payments so it could not be identified what they refunded. There was no reference.
In the meantime they charged for OD fees (that 100-125 per month) and I successfully had those removed, twice. Someone even called me and apologised, but when I said that the issue is still not resolved - since now I can't even negotiate with anyone since HSBC sits on who is the lender, and what they refunded and why, all I was told is they'll get back to me.
They didn't so in December (15th) I went to the branch and asked them to let me pay them in installments, noting I owe the moneys they refunded. (Tbh, I used them up - yup I know I shouldn't have but after a crappy Xmas the year before, them leaving me without any money in the month of my Birthday, my family was coming to visit for Christmas etc and I needed some good time after 1,5 yrs not seeing any family.) They were nice, promising they'll look into the installments offer and let me know and they won't do anything without prior discussion not to increase the debt I have.
To the branch-visit HSBC reacted in contacting the lenders they refunded (2, as I later found out) for charge back. They were rejected by one lender (disputing my right to withdraw the authorisation) and that they started pushing on me: on Friday 11 Jan I got a letter that on Monday 14th they will debit me for it £1200 approx. Of course I had no such amount on such short notice so I contacted them and asked for installments. In February, the same letter arrived on 11 Feb, the debit scheduled for 13 Feb - no response to my request for installments. Again I wrote to them with the same request.
In March, the other lender that didn't reject HSBC made agreement with them and refunded them. This lender then immediately debited my new debit card for lateness fees of 150+ days (from 28 Sept to 7 March, the time HSBC took to decide.) This lender later confirmed to me, that HSBC contacted them for charge back not earlier than 24 December - 3 months after the initial payment and 1 week after my visit to the branch asking HSBC to let me pay HSBC, not the lender.
Just as this happened, HSBC also sent me a new letter, this time it said "as per your request we debited your account" with the full amount, also "your account is overdrawn" etc etc - they went £700 over my overdraft limit. The next day another letter arrived, noting to me they declined the direct debit of my HSBC home insurance, and charge me the fee of returned DD.
Again I replied them the same. Again no response except the number of collections. Then I wrote a complaints letter with the whole history of the case - now including how they handled the situation differently with the two lenders, telling me in one case how I had no right to withdraw authorisation, while in the other case the lender advised HSBC it's rightful so HSBC washed hands and took payment from the lender, only for me to pay for their lateness.
No response to the letter, they started sending emails with a phone number that was a 0845 IVR system to pay. They also started calling me, sometimes multiple times on a day, same IVR, to pay by debit or credit card. sometimes when I bothered going into the IVR, I could reach the point where it advises me "please call back during business hours" when it was clearly during business hours. These calls harassed multiple times a day for 3 weeks straight in the last weeks.
A week ago they sent a new letter, this time noting they will file the default. I called them again, they told me they have no record of me asking for installments - a lie - and scheduled callback. That didn't happen in the scheduled time, so I went to a branch, where I was told none can talk to me - tho all they'd have done is calling the team that didn't call me back.
Last night they called me, only to tell me that they will not enter into any settlement or payment plan with me. They refer to my level of income (which is higher than average) noting they have 2 months before they can file the default and sell the debt (and then they no longer have to deal with me!) Somehow my level of income does not prevent them from pushing for the whole amount, now £1840 with their fees mounting during the months they refused to discuss.
I took it as an attempt to 1) threaten me into paying the fees and all or 2) if I don't then HSBC can sell the debt and file the default and no longer have to deal with me disputing and asking for installments... while the case open I keep referring to how they messed up a simple situation and sat on it for months.
Today I called HSBC complaints. They simply told me the same: HSBC will not enter any agreement with me, and demand £1340 at least (amount of informal OD now) and then £500 plus occurring fees. They say they'd "very much regret" if I'd go to ICO, or Watchdog... but at the end the guy said, to shut me down, that if I have anything else to say I should tell it to the ombudsman services.
Topping this, I tried for personal loan - I moved my banking activities to Lloyds after this situation, so HSBC doesn't get my earnings, but Lloyds declines and so did a second bank. The only 'glitch' on my credit history is again HSBC, reporting in 2011 that my account went into informal overdraft - for which I cleared within the 30 days including paying the fees they had for informal OD. Still they report and Complaints-guy told me today, they "are entitled to report every late payment as well as to protect themselves and sell the debt, and file for default." I maintain a credit card fine, have 5 clean accounts, had 8 inquiries in the past yr, 1 other loan being paid fine. When applying for a loan, I applied for debt consolidation and included the other loan amount. Seems the only thing I can get is credit cards, those no matter how much I applied for don't get declined. (Makes me wonder if situations like this, and ppl not getting help when they need if ever once they had a late repayment in life, is why so many ended up in credit card debt.)
Sorry for the long story. Any advice would be helpful - besides what I know, that my only way to protect my credit history is to pay the £1340 at least, within a month. If I'd get the default, I'd lose my job so that will be my first aim (the company I work for is that regulated.) In my opinion the whole situation is to ensure the first 6 months get covered up where HSBC was quite "liberal" in handling the situation, to say the least. What do you think?
(PS - in my somewhat stressed and anxious state now, please be nice. I'm not someone who lives on loans, I ended up without a home 1,5 yrs ago when I needed the payday loans, and I repaid a tremendous amount of stuff. Again, my payment records are almost clean and I have a 814 public score with Callcredit and Equifax, 683 for Lenders, 8 closed successful accounts without any lateness occurred, and 6 open, with only HSBC showing "1" in 2011. No court actions, no insolvencies, and I'm on ER ever since I moved to the UK. This disputed occurrence is not yet reported by HSBC.)
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