Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

[Eternal Ostrich]

Dear LegalBeagles,

you have been kind enough to help me with debt problems in the past, I hope you will be able to do so again.

Between 2007 and 2008 I went through a bad period and lived on my accumulated credit for 18 months, by the beginning of 2009 the monthly repayments for my, by then many, debts exceeded my monthly income. From that point on I buried my head in the sand and stopped paying all of my debts, foolishly ignoring them completely.

Two of the debts I had ignored since 2009 were a £5000 flexiloan and a £1000 [possibly £1500] agreed overdraft on my current account, both with HSBC. Having gained a little knowledge from reading your forums I had assumed that the larger debt would have been statute barred by now, however this appears now not to be the case.

For the past few years I have recieved letters from Lowell, under their various guises, chasing a debt to HSBC for £7000. I was puzzled as I thought the amount was too much for interest and charges on a £1000 overdraft. Recently their letters have become more frequent [fortnightly], claiming pre-legal assessment and offering 40% discounts. Looking back through my old, ignored correspondance from HSBC I have discovered that when I stopped paying into my flexiloan and overdraft in early 2009, HSBC continued to take £200 a month from my overdraft, authorising an increase in my overdraft each time and charging my account, untill the entirety of the £5000 flexiloan had been transferred into the overdraft on my current account; this despite my not paying into either and they having had no communication from me for the whole period.

I'm unsure what to do about this debt. Should I accept their discount and come to an agreement to repay this debt? Or, is there a realistic way of challenging this debt? I feel that a solicitors letter from them isn't too far away; but why offer me a discount if they have everything necessary to proceed to recover this debt?

I have only dealt with credit card debt before, not overdraft debt which I believe isn't statute barred, therefore I would welcome any advice that LeagleBeagles can give me

Many Thanks,

Eternal Ostrich.

p.s. apologies if I have posted this in the wrong forum/ place

[MIKE770]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

last payment date/acknowledgement???

[Eternal Ostrich]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

March 2009. Possibly a little earlier but certainly nothing since, although when the bank sold the debt (in 2012 I think) they made a correction and credited a small amount to the account. I personally haven't made a payment since March 2009 or before, and have had no communication with the bank or creditors since then either.
Thank you for replying to my post. I hope you can help.

[Amethyst]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

So the flexiloan wasn't merged into your overdraft but HSBC continued paying your flexiloan with your overdraft resulting ( possibly ) in the flexiloan being paid up and an insane (£7k) overdraft debt ?

first thing I think you should do is send a subject access request to HSBC - asking for full transaction lists, agreements , screen notes and anything they hold on all accounts you have held with them.

I would also also send a cca request to Lowell stating you do not acknowledge any debt to their company at the top ( to reserve your stat barred status )

That may get any actual legal action held up until you have the full information and can form a defence based, in all likelihood, in unfair terms ( on the od and the loan) bank charges and no cca compliance.

In in my view it is too early to consider any settlement offer and it may s likely you are statute barred once the accounts are pared back.

Out of interest, what shows on your credit file?

[MIKE770]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

sounds like a Phanton payment by them, tell them to prove payment i.e.:- how paid, by whom. account number, cheque number. cash payment info thru who, method they deemed it was paid date and method. check your accounts for any payment, small amount ? what was that amount?

[Eternal Ostrich]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

Thank you for your reply Amethyst,

Yes, when I stopped paying my debts in 2009 I had an agreed overdraft on my current account of £1000 or £1500, and a flexiloan of £5000. It seems that after I stopped paying them, HSBC continued to take £200 from my current account which was already at its overdraft limit, increasing the limit each time to accomodate the payment until the flexiloan had been paid, effectively turning it into an overdraft rather than a loan.

I'm ashamed to say that I don't know what my credit file says, I've always been too scared to check it, but i will now and let you know.

Iim guessing there is an example cca request letter on the forum somewhere, I'll look it up and do as you suggest. Is there a particular format for the subject access request letter? Should I send anything for copying/ admin to HSBC? And which part of HSBC should I send it to? My local branch or the UK head office?

Sorry for so many questions.

Many thanks for your help as you can probably tell I'm clueless

[Eternal Ostrich]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

Thanksfor your reply MIKE770

I can't remember how much it was for, an odd number. Something like £13.57 or £31.45, something like that. I will be able to get the exact amount from my records. I'm sure I can establish that credit wasn't from me, as i havent paid anything since 2009. My concern really is, as this is an overdraft debt, that there is no statute barring; and if that is the case, how it may be challenged, if it can be challenged at all. Amethyst has suggested a way forward based upon unfair terms which I hadn't heard of so will do as she suggests and will come back when I have the info she's asked for

Many thanks and any furthr info/ suggestions is appreciated

[MIKE770]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

statute limitations act covers monies alledged owed

[Eternal Ostrich]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

Thany you MIKE770,

In that case this debt should be statute barred shouldn't it? As it is from early 2009?

- - - Updated - - -

Checked my credit file through clearscore, I realise it only covers one of the agencies, and it's clear of any debt. Just shows my mortgage which has always been uptp date.

[MIKE770]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

if not been acknowledged yes, if a claim that would be your defence, sure Ame is monitoring this thread and advise accordingly


Limitation Act 1980 - Legislation.gov.uk

www.legislation.gov.uk/ukpga/1980/58

[Diana M]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

Sorry but I haven't yet had time to read back through your thread in any detail but a HSBC Flexiloan is/was NOT an overdraft facility.

Di

[Diana M]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

Amethyst has suggested a way forward based upon unfair terms

What "unfair terms"?

Do you have a copy of the Ts & Cs for this Flexiloan to see if they were unfair?

Di

[Eternal Ostrich]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

Thanks Diana M,

It was a flexiloan but HSBC put 200.00 a month onto the overdraft of my current account until it was paid off, adding 5000.oo + to my overdraft. Raising my overdraft limit each month without my knowledge or agreement. All whilst nothing was being paid into or out of my account and they had no contact from me. It must have taken them over 4 years to clear the flexiloan this way, which would take it to 2011 or 12, they sold the overdraft to lowell in 2012 or 13 but I haven't made a payment or corresponded with HSBC or lowell since the first half of 2009.

Many thanks

[Diana M]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

a flexiloan of £5000. It seems that after I stopped paying them, HSBC continued to take £200 from my current account which was already at its overdraft limit, increasing the limit each time to accomodate the payment until the flexiloan had been paid, effectively turning it into an overdraft rather than a loan.

I can't speak for your particular situation (without seeing the paperwork) but HSBC Flexiloans were usually for £5k paid by a transfer from your current account at £200 per month.

This was usually in the Ts & Cs.

The Flexiloan account provided a cheque book facility. Was that the case with your account?

If this £200 per month 'deduction' from your current account put the current account over it's agreed limit then that may be another story.

Di

[Eternal Ostrich]

Re: Advise please re Lowell and an 8 year old overdraft debt [formally a flexiloan]

Sorry, missed your last post. I'm not really sure what she meant by that.

'form a defence based, in all likelihood, in unfair terms ( on the od and the loan) bank charges and no cca compliance' is how she has put it.

She has asked me to contact HSBC with a subject access request - requesting details and screen notes on all the accounts I have had with them.