1st Credit, need advice as how to proceed.

[Losingyourjobisnotfun]

Hello

This is my first time on the forum so please forgive me if I have posted incorrectly.

Over several years as a student, trainee professional, and working professional, I racked up a debt with HSBC.

Any how some years ago I lost my job (no fault of my own) and defaulted on my loan repayments. I was unemployed for many years and paid a fiver per month through a payment card. After a while stopped making payment (I know pretty bad form, I had never missed a loan payment for well over ten years). I would make sporadic payments.
I would get letters from Metropolitan Collection Services, sometimes they would offer to reduce the debt considerably if I would pay in full.
When I moved house I lost my card and couldnt find who it was that I had been making payments through, so have not made payments for possibly as long as a year. (Metropolitan stopped contacting me and I was getting letters from some solicitors).


Anyhow now at a new address I have received a combined letter from HSBC and 1st Credit explaining that the debt has been sold to 1st Credit.

In all of this I have realised that I had been mis sold PPI , I never actually realised I had PPI until I found my loan paper work from nearly ten years ago! Where do I stand with this situation, I'm sure 1st credit wont accept a PPI claim, on the debt they have just bought.

After years of being unemployed I am happy to be back working but I only get 20hours a week low paid work and have no assets.

The debt is for 7000 pounds, what do I do next? Who do I contact, the letter from 1st credit states that I shouldnot contact HSBC.


Any advice or pointers would be greatly appreciated.

[Vircoa]

Re: 1st Credit, need advice as how to proceed.

hi,

can you please let me know how long ago you took out the loan? Also I would start by sending a prove it letter to 1st Credit. as this will put pressure on them to provide any documentation linking yourself to the account and also hold them off from any collection activity until you can work out what action you would like to take.

[FlamingParrot]

Re: 1st Credit, need advice as how to proceed.

Welcome to LB

Anyhow now at a new address I have received a combined letter from HSBC and 1st Credit explaining that the debt has been sold to 1st Credit.

In all of this I have realised that I had been mis sold PPI , I never actually realised I had PPI until I found my loan paper work from nearly ten years ago! Where do I stand with this situation, I'm sure 1st credit wont accept a PPI claim, on the debt they have just bought.

You are right in saying you couldn't reclaim PPI from 1st Crud, since they wouldn't have sold it to you in the first place, any reclaim would have to go to HSBC. Normally, if successful, any redress on a defaulted account with an outstanding balance would be set off against the balance on the account, however, in some cases where the account has been sold, the redress has been paid directly to the debtor. :bounce:

After years of being unemployed I am happy to be back working but I only get 20hours a week low paid work and have no assets.

The debt is for 7000 pounds, what do I do next? Who do I contact, the letter from 1st credit states that I should not contact HSBC.

Any advice or pointers would be greatly appreciated.

It would say that, since they've bought the account from HSBC, however, if you wished to have a go at reclaiming, you'd have to contact HSBC for that purpose, as they'd have been the ones who mis-sold it.

Presumably this was for a loan, as you wouldn't be referring to PPI on an overdraft. That being the case, you could start by sending a CCA request to 1st Crud. :thumb:

[Losingyourjobisnotfun]

Re: 1st Credit, need advice as how to proceed.

Hi

Many thanks for the replies.

Vircoa, the last loan agreement was set out in 2005. By proove it letter do you mean cca? I think there could be an issue with that, as explained below, it appears this request is based on the current account I had, which was closed, the same time as I defaulted on the debt (I had overdraft facility).

Flaming Parrot, as I figured, I will have to contact HSBC about PPI, but will also ask 1st Crapit for cca? I think that is what it is? I have been reading alot and have had a good scour through my documents and have realized a couple of things, that I initially in my panic, overlooked.

Firstly the debt is under the sort and account number of my closed current account. It also appears to be a combination of both the loan and currrent account debts. As I understand if these two accounts are to be merged a new account/agreement is created with new/different terms, that have to be signed by myself. I have no recollection of ever having seen this process. I have collection documents that were initially sent separately for each account, it appears at some point about 3-4 years ago, the two separate accounts and collection streams, became one?? I cant be sure, and now if I am correct what I will need to do is make a subject access request? Now this is where things get cloudy for me, will 1st Credit refuse a cca as they believe my debt to be a current account?

[Vircoa]

Re: 1st Credit, need advice as how to proceed.

I would send a CCA request, and also request a break down of the account and how the reached that balance? Then you will know what they are chasing you for and if they can enforce it.

[pt2537]

Re: 1st Credit, need advice as how to proceed.

Hello

This is my first time on the forum so please forgive me if I have posted incorrectly.

Over several years as a student, trainee professional, and working professional, I racked up a debt with HSBC.

Any how some years ago I lost my job (no fault of my own) and defaulted on my loan repayments. I was unemployed for many years and paid a fiver per month through a payment card. After a while stopped making payment (I know pretty bad form, I had never missed a loan payment for well over ten years). I would make sporadic payments.
I would get letters from Metropolitan Collection Services, sometimes they would offer to reduce the debt considerably if I would pay in full.
When I moved house I lost my card and couldnt find who it was that I had been making payments through, so have not made payments for possibly as long as a year. (Metropolitan stopped contacting me and I was getting letters from some solicitors).


Anyhow now at a new address I have received a combined letter from HSBC and 1st Credit explaining that the debt has been sold to 1st Credit.

In all of this I have realised that I had been mis sold PPI , I never actually realised I had PPI until I found my loan paper work from nearly ten years ago! Where do I stand with this situation, I'm sure 1st credit wont accept a PPI claim, on the debt they have just bought.

After years of being unemployed I am happy to be back working but I only get 20hours a week low paid work and have no assets.

The debt is for 7000 pounds, what do I do next? Who do I contact, the letter from 1st credit states that I shouldnot contact HSBC.


Any advice or pointers would be greatly appreciated.

Ok any Claim for PPI would need to be against HSBC as opposed to 1st Credit, this is primarily based on the fact that 1st Credit havent had benefit of the funds for the PPI so therefore it would be inequitable for them to repay you.

The PPI claim would most likely be offset against the debt, so it would be prudent to work out how much PPI youve paid to HSBC, you could also claim interest at the contractual rate which would bump the price up a tad.

As for the CCA request, absolutely worth making the request, it costs £1.00 and it can provide you with a good argument if the creditor fails to comply

[Kafka]

Re: 1st Credit, need advice as how to proceed.

Send SAR to HSBC, which requires them to supply all personal data they hold on you, which should be very informative in telling you what documentation they hold, what they have done and what charges they have applied. It will cost you £10 but well worth it. They have 40 days to respond so get this off right away.

This is a statutory right under the DPA and quite separate from the CCA request.

[Losingyourjobisnotfun]

Re: 1st Credit, need advice as how to proceed.

Many thanks for the help, I am getting on the case, I will let you know of the outcomes.

Again, many thanks.

[Losingyourjobisnotfun]

Re: 1st Credit, need advice as how to proceed.

Hello

HSBC have replied to my SAR request informing me that I did not sign the request letter (my name was typed in the same font as the rest of the letter, at the end of the letter).

They have also tried to dissuade me from making an SAR (have returned my postal order for ten pounds) and included a pro forma for me to fill in:-

"REQUEST TO UNDERTAKE A SEARCH UNDER THE DATA PROTECTION ACT 1998 FOR PERSONAL INFORMATION ON THE INDIVIDUAL NAMED BELOW"

I have already made my request to the for an SAR, do I have to fill in there pro forma? Must I send them another letter with a wet signature?

Again any help much appreciated.