Question:
Over the Christmas period HSBC called me stating they wanted repayment
of my graduate account in full. Even though the account was within
agreed limits, they stated a few bounced direct debits were the cause.
I received letters to this effect too.
I also have a credit card with this bank and they stated my credit
card and graduate account would be consolidated and I could either take
out a managed loan, or have my details passed to Metropolitan
Collection Services, a debt collection agency. Being unemployed, I told
them I wouldn't be able to afford the loan repayments so to send my
debt to the agency.
I have received a letter this morning from Metropolitan Collection
Services just for the sum of the graduate account and not the credit
card. I called the bank and they said both accounts are being passed to
the agency separately where they would be consolidated. But I just
called the agency and they said its impossible to consolidate to debts
with them, and I would have to pay on both accounts separately. Is this
true? I'm unsure if they're saying this so I will have to pay more
each month, or because it's not possible.
They also stated that they needed £40 a month per account from me
(which I seriously can't pay) and I told them I can only afford £5.
After some arguing (and threats about court) they said they would
accept this token payment, but it would be reviewed in a few months.
And if I still couldn't pay the £40 a month, I would have to prove
my income.
So firstly, where do I stand in regards to minimum payment? Can they
demand I pay a certain amount (even if I can't afford it?).
Secondly, is it truly impossible for them to join my 2 accounts with
them (From HSBC) into one account so I only have 1 payment per month to
them?
Answer:
If they take the case to court, and you really cannot afford to pay very
much, then the court will order you to pay only what you can afford. You can
tell the court anything you like about your finances - no check is made.
You could easily get a repayment as low as £1 a month. If you were to
default after a couple of months, there is nothing the debt collector can do
for over 4 years. Defaulted monthly payments cannot be pursued until at
least £50 has been defaulted on.
