Confused: Being chased for written off debt.

A question about : Confused: Being chased for written off debt.

Great Forum : I hope someone can help me understand my situation.

I had a debt with HSBC of Ј1750. When I became disabled and unable to work I came to an agreement to pay Ј1.50 Interest free. Which was paid monthly to Metropoltan Collection Service ( which I believe is part of HSBC). I eventually asked if they would consider writing-off the debt as it was improbable that I would ever return to work. They requested medical documentation and doctors letters which I promptly sent them and they agreed in June 2007 to no longer pursue the debt. I have this in writing from them.

I am now being contacted by company called MK Rapid Recoveries who claim that they have purchased the debt and are pursuing me for payment.

I am confused. Why have HSBC sold a written off debt to another company and is this legal. Where do I stand and what should I do?

I hope somebody can help.

Many thanks

Best answers:

• What is the exact wording of the letter you received from HSBC ? Did it specifically state the debt was written off or just that they were not planning to pursue it ?
• Thank you for your time: The exact words they use are:
  We are no longer perusing you in connection with this debt.
  The letter is dated 28th June 2007 and I have not heard anything from them since.
• Ok, debts don't get "written off". As they stated they would cease any recovery attempts. That is it, the debt still exists, they just agreed to stop chasing you for it.
  This debt has obviously been sold on without the new owners knowing that the old owners had agreed to stop chasing you. This is extremely cheeky, but the way I look at it is one DCA has done another over (albeit an in-house DCA), which has made me chuckle! lol
  If you have it in writing that HSBC would stop pursuing you for the debt then send a copy to the new owners and tell them you won't be paying anything.
• Also add into the letter any further demands will be harrassment and will result in legal action and you informing the media.
  have a nice day!
• I do have the letter from Metropolitan (Hsbc) dated 28th June 2007 that states (their words)...
  ...we confirm that we are no longer pursuing you in connection with this debt.
  I sent a copy of this to MKKR and they have written back to me with a letter that encloses a copy of a Notice Of Assignment, addressed to me from HSBC dated 9th March 2012., which I personally have never received
  Also the Notice of Assignment included and address to me has the HSBC logo but nothing else (no address no contact details of the sender) but it is signed by the Head of Recoveries of the HSBC Bank.
  In the letter from MKKR they state that my account has been assigned to MKDP LLP and that they, MKDP LLP have appointed MKRR as their serving agent to manage my account on their behalf.
  Question: Can HSBC "sell" a debt that they are no longer pursuing (because of my medical condition and financial situation) in the full knowledge that a repayment will never occur (my situation is unlikely to change) ?
• Yes, they can sell it at any time they like.
• So Gordon, should I do just as you say and write to the new owners and tell them that because HSBC said they would not be pursuing me for the debt that I will not pay them anything?
• Well, I would. Enclose a copy of the letter from HSBC
• Thanks Gordon for your time: I have already sent the letter from HSBC to MKKR. They have written back to me with the above info (See post 6 in this thread).
• I would write to HSBC's Debt Recovery Section asking for a copy of the letter (Notice of Assignment) that you didn't receive. I'd also ask them why they have sold on the debt when they have stated you wouldn't be pursued for it.
  It could be that all unpaid debts hit a trigger at say 1 year and 3 months prior to becoming statue barred and are automatically sold to the highest bidder or something like that.
  Maybe HSBC will be able to pull it back off MKKR - who knows?
  How much are MKKR persuing you for and what payments are they expecting of you? I think worse case scenario is that you end up paying Ј1.50 per month again.
  If what HSBC has done in selling on the debt is legal I would be careful in outrightly stating that you will not pay it. You have already acknowledged the debt with your exchange of letters and I'm not sure you could then threaten to take them to court because they dare to ask you to pay your debt. It would be a whole different kettle of fish if they were to try to take you to court if you have offered to pay something to them. If you offer them nothing but refusal to pay, how would that look in court?
  Remember, they will have paid much less for the debt than the Ј1700 you owed so I think you should offer thema token Ј1 per month.
  Poo
• They said they wouldnt persue, but dont say that they are writting it off or that they wont sell it on. Someone else is persuing you for it
• goes to show companys will take small debts to court, been fair to the company they did nothing wrong.
• I wouldn't pay them anything at all, they have agreed in writing not to pursue you, inform the bank that you are holding them to their word. Inform the new DCA in writing and recorded that they are to hand the file back to HSBC as you are in dispute with them. They must hand it back then otherwise they are breaking the law.
• Thank you all for your time and your replies. I will be taking taffy's advice on this. One thing taffy..Is there something legal I can state/quote in the letter to the new DCA that tells/obliges them to hand the file back to HSBC?
• Taffy, as Chanz said HSBC aren't pursuing Caneluna for the debt, someone else is.
  From Caneluna above post 6:
  "I do have the letter from Metropolitan (Hsbc) dated 28th June 2007 that states (their words)...
  ...we confirm that we are no longer pursuing you in connection with this debt."
  Does the letter also state "and we will not sell it on to a third party to pursue."?
  I'm guessing not. In order to put the account into dispute, Caneluna needs to write to HSBC to instigate this which it doesn't look like they have done yet.
  Poo
• Poosmate with respects, if a DCA receives a letter saying the debt is in dispute, they must by law hand the file back to the original lender, any further action would be harassment.
  OP this something you can adapt to your needs, send it to the DCA recorded, but don't use your signature just type your name,
  Address of the loan company
  Or
  Debt Collection Agency
  Date (insert today’s date)
  By recorded delivery
  Dear Sir/Madam
  Reference or Account No: (Insert their reference or account number; this will be on the letter they have sent you)
  I / We refer to your contact regarding the above account which you claim I / we owe. I / We am / are informing you that I/we do not recognise the debt and therefore it is DISPUTED.
  Under the Office of Fair Trading Debt Collection Guidance (updated October 2011) it states that it is unfair to send demands for payment to an individual when it is uncertain that they are the debtor in question.
  I / We would also remind you that the OFT states under their Guidance that it is ‘unfair’ to pursue third parties for payment when they are not liable and that it is deceptive and unfair in not ceasing collection activity whilst investigating a reasonably queried or disputed debt.
  Furthermore, if you ignore and/or disregard claims that debts have been settled or are ‘disputed’ and continue to make unjustified demands for payment then this can amount to physical or psychological harassment, as detailed in the OFT Guidance.
  I / We am / are also familiar with Section 40 of the Administration of Justice Act.
  As I / we dispute this debt you refer to then I / we trust you will make no further contact unless you can satisfy me / us that this debt exists and that I / we am / are liable.
  If you subsequently cannot prove I /we owe this debt and if you continue to act in this irresponsible and unprofessional way then I / we will have no other alternative than to report you to Trading Standards and the Office of Fair Trading. I / we will also lodge a complaint with the Financial Ombudsman Service and your trade association, if appropriate, the Credit Services Association.
  If I / we receive any communication from a / another debt collection agency then it will be evident that you have sold this debt on with the knowledge that it is disputed. Should this occur then I / we will report you to the government bodies and trade association detailed above.
  I / We now await written confirmation that this matter is now closed, you are not to contact me / us by telephone, instead by letter only.
  I / We look forward to your reply by return.
  Yours faithfully,
• Thank you Taffy for your suggestion:
  The letter you have outlined in your post, just to be absolutely certain, is the letter I send to MKKR. I am correct?
  This after contacting Hsbc to dispute their selling on of the debt I presume.
  Apologies if I may seem slow in understanding. I just want to make sure I proceed in the correct manner.
• First of all thank you all for your advice and your time.
  I have today contacted the banking ombudsman and outlined my case. They are writing to HSBC for me and will also be sending me a letter to forward on to MKRR which , they say, may help to keep MKKR at bay whilst I wait for a response from HSBC. If of any interest I will keep this thread updated with any info on this matter as it proceeds.