www.iva.co.uk

My family hit financial difficulties last year after my husband was unable to work due to a serious illness.I contact all creditors to explain the situation and they all froze the interest and accept a payment plan from us. All except my bank who have refused point blank to help in any way.

i have contacted them on a number of occassions and they have basically said they only way to reduce my loan payments is to re-finance the loan oaver a longer period of time but i don't have enough money to do that. Are they being unreasonable and what would happen if i just cancelled the DD and forced their hand.

Hi maggie, and welcome to the forum.

If you cancel your direct debit, you will find that the bank will still take the payment anyway.

We were with HSBC and had a loan. When we were unable to pay it in full, I tried cancelling the payment, but was not allowed to. Even changing banks, swapping the payments across to the new bank and then cancelling, made no difference. They just kept taking the payments, then putting the money back and charging us!

They tried to get us to re finance as well.

Have you thought about trying for an IVA or doing a DMP through a company? That way, all the hassle is taken from off your shoulders.

HSBC did accept a DMP through a company from us.

If you still bank with them then you will most likely not be able to cancel the D/D.

I would suggest you get a new bank that you don't owe money to and with no credit facilities. If it is to be assumed that you have kept up your payments so far to them, then re work your budget to what you can actually afford in total to all the debts and then send them their fair share each month, and also everyone elses fair share as well. It is actually fairer to all if you do that.

I am also perturbed, but not particularly surprised, that a high st bank would encourage you to take more debt when they know you are in trouble.

Regards.

You will need to open another accout with a bank they have nothing to do with. Then you will be in control as they can continue to take payments from your present account. When they know that they can no longer just dip into your account and take their payments they may be ready to come to some arrangement but there are no guarantees.
Have you thought about dealing with this in the long term?

Size5, HSBC did that with us, they even sent us forms through to sign as we had 'asked' for this loan!!! They then phoned us and asked why we had not signed the papers. We were in deep doo doo by this time and could not have afforded the payments and they knew it.

They also refused to stop taking the payments even when we switched and cancelled them.

Kallis, I have seen them do this many times. In effect what they do is refinance the outstanding debts with them to the level of payment that is/are being offered on the DMP. No benefit to be gained for the individual as no money changes hands, all that happens is that you are now in more debt with fresh interest on the new agreement.

Regards.

In actual fact, our repayments were going to be more. HSBC eventually closed our account and sold the debt on once we were firmly established in the DMP. They didn't even bother to vote when we did our IVA.

Your repayments were going to be more?

Now that's scary.

More than what we were offering in DMP rather than more than the original payments on the loan.

Sorry if I managed to confuse you there.

That's OK, I knew what you were talking about, it was just a deviation from the norm for this creditor that was unexpected.

Luckily, you didn't fall for it.

Regards.

If I had, I think I would be posting on the br site instead of this one!!!!!!