HSBC Debt Collection – A Guide To Managing Your Debt With HSBC And What To Do If You’re Struggling Financially
HSBC is one of the largest banks in the world, covering 66 countries and serving over 39 million customers across the globe. HSBC UK provides a range of financial products and services to both personal and business customers. HSBC provides mortgages, loans, overdrafts and credit cards, among other products.
HSBC is authorised and regulated by the Financial Conduct Authority (FCA). HSBC adheres to The Standards of Lending Practice set out by The Lending Standards Board.
Why Is HSBC Contacting Me?
If you’ve got a credit product with HSBC such as a loan, overdraft or credit card or you’ve missed mortgage payments, HSBC will get in touch with you to find out what is going on. They will want to discuss your current financial situation to ascertain whether you are able to pay, how much and when.
Should I Ignore HSBC?
It is not advisable to ignore contact from a creditor in relation to your debt. If you are facing financial difficulty, you may be able to get support if you discuss your problem. Ignoring debt often leads to the debt increasing and may result in court action being taken against you.
I’ve Missed Loan Repayments – What Can I Do?
If you’ve got an HSBC loan and you have missed your monthly repayments, you should get in touch with HSBC as soon as possible. You may be able to make a payment plan to help you repay at a rate that you can afford.
Income And Expenditure Form
You might be asked to complete the HSBC Income and Expenditure Form. If you have missed payments and will be unable to pay any missed payments or outstanding balance within 30 days, you should use this form to calculate your disposable income.
You will provide details of your income and outgoings (such as your salary, rent or mortgage, household bills etc) which will be used by HSBC to determine the affordability of any payment plan. It is important to answer as accurately as possible.
If you have an HSBC overdraft, you should contact HSBC to see if you have the best option available for your needs. If you don’t have a formal overdraft, or you are exceeding your agreed limit, you will be paying more in fees and interest.
If you owe money on your HSBC credit card that you are struggling to repay, you should stop using your card, but continue making at least the minimum monthly payment. The interest rate and fees on credit cards are relatively high so you should aim to clear the balance as soon as you can.
I’ve Received A Letter About Credit Card ‘Persistent Debt’ – What Does It Mean?
If you’ve received a letter about persistent debt it means you’ve paid more in interest and charges, over a period of 18 months, than you have repaid of the amount you’ve borrowed on your credit card.
This doesn’t necessarily mean you have breached your credit agreement, as you are only required to make the minimum payment each month, however persistent debt can be a warning sign that you are not managing your finances as well as you could be.
Making only the minimum credit card repayment each month means your credit card debt will be difficult to clear and will take longer, as you pay more in interest and charges.
I Need More Time
If you are feeling overwhelmed and need more time to work out your money, or seek professional advice, you can ask HSBC to give you breathing space. They should give you 30 days to get things sorted, so you can start on the road to financial recovery. You should use this time to consult a debt specialist.
How Can Scottishtrustdeed.co.uk Help Me?
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The Right to Set-Off. Can HSBC Take My Money?
You need to be careful if HSBC is your main bank, because banks have the right to set-off. This means if you have a current account or savings account with HSBC, for example where you get your wages or benefits paid, the bank can take payments from your available balance to pay your debt.
This includes your overdraft, loan or credit card payments. You won’t be given notice before this happens (otherwise you could just move your money to avoid paying).
How Can I Stop This Happening?
You should always try to keep your debts separate from your current account – the easiest way to avoid HSBC using the right to set off, is simply to move your money into an account elsewhere, with a separate financial institution.
If you do have money taken, and find yourself in financial difficulty because of it, you can ask for a refund. You still need to be able to afford your living expenses and priority bills.
What Will Happen If I Don’t Pay My Debt To HSBC?
If you can’t come to a payment arrangement with HSBC, they might default your account and take further action against you to recover the amount you owe. You will usually lose the ability to use your account if you are not taking steps to repay your debt.
If you are unhappy with the service you have received from HSBC, you can make a complaint in branch, over the phone or in writing to:
Customer Care Team
HSBC Bank plc
PO Box 6125
If you remain unhappy with HSBC’s resolution, you can refer your complaint to the Financial Ombudsman Service (FOS) for independent review. You can get in touch with the FOS by writing to:
Financial Ombudsman Service
Can HSBC take me to court?
If you owe money to HSBC and you do not pay, you can be sued. If HSBC sues you and wins, the court will enter a judgment (also called an order) against you that says you must pay back the debt. But if all your money and property are protected, then creditors cannot take them from you. Get free advice here.
Legally write off up to 85% of debt to HSBC
Unaffordable debt to HSBC can be legally written off by using the LEGISLATED Scottish Trust Deed or IVA program (If you reside in England). This can also protect your assets, such as your house or car from repossession. See if you qualify by using our free debt calculator here.
How can I stop debt letters from HSBC?
Write to HSBC to Request them to Stop Contacting You (If That's What You Want) Under the FCA guidelines, if you request that a debt collector stop contacting you completely, it must do so (with a few exceptions). Your request must be in writing. You can use our 'prove the debt letter' to do this. Download it for free here.
Can HSBC come into my house?
Without a court order, absolutely not. Neither HSBC or any other debt collection agency nor a debt collector is considered a court-appointed bailiff. HSBC may visit the address of a debtor but cannot enter the dwelling without the consent of the resident.