settling with hsbc

[dodgykebab]

hi, ive come to an agreement with hsbc to pay a lower settlement figure for my personal loan, credit card and overdraft. i requested a letter from them stating the figure theyve accepted with prove they will not chase the remainder of the debt.
the letter only relates to my loan account.
http://s546.photobucket.com/albums/h...t=LastScan.jpg
should i accept this or ask for every account to be included in the letter?

[debtisbad]

Re: settling with hsbc

First, everything should be in writing so there is a record-they refer to a telephone call.

Second, there is no mention of the other accounts, so you need to make sure that they will also settle them.
They are not known for their honesty and this could be a trick and the other accounts may not be discounted.

Third, they say they will mark the credit file part paid. It needs to be clear that this is a full and final settlement and the file should be marked settled.

Fourthly, is it a good settlement i.e. How much discount did you get?

Keep up the urgency by suggesting an urgent settlement if they agree. Once they small cash, they are more like.y to agree.

[Garlok]

Re: settling with hsbc

Hi Guys,

Absolutely debtisbad. There is some discussion on F & Fs in the general debt forum . This is a delicate subject and needs to be treated with the utmost caution as you are no longer dealing with Statute Law you are in fact in the minefield of the Common Law of Contract. To be successful letters have to be worded correctly and it is most advisable that the cheques sent in settlement are third party cheques.

Keeping your F & F watertight is also a problem and I would always advise getting a lawyer who knows about such things to actually deal with it. Lloyd LJ made the distinction in the Cpourt of Appeal (Stour Valley Builders) between settlements made between clients/creditors and those made by lawyers. It is not expensive, three letters in our case and gives you peace of mind.

Have a read, I did a summary in the Sticky area, and come back if you need anything else.

regards
Garlok.

[dodgykebab]

Re: settling with hsbc

i got around around a 35% reduction on my debts.
just on the partially settled part on the credit file. what does this actually mean? im not gona want credit in the future.

[Garlok]

Re: settling with hsbc

Hi DK

IMHO this will mean that effectively that your credit file will be trashed for the next 6 years before what is actually treated as an adverse comment by many drops off.

I think many of us are beyond caring about CRFs.

However it is essential for your future that you get assurances that you will not be pursued by the OC or any of their cohorts now or in the future for the remainder.

regards
Garlok.

[dodgykebab]

Re: settling with hsbc

OK THANKS guys.
in the letter i recieved it states that the bank will clear the remaining balance.
is this prove the outstanding balance will be gone forever and i wont be chased by anyone in the future for it?