HSBC Personal Guarantee Fear

[Trader4]

I would like to hear from anyone that has experience in dealing/negotiating with HSBC over a PG
My business was put in a position by HSBC that ultimately cornered me into liquidating. There was a PG in place due to a loan we had.

What I wasn't expecting is the case being passed over to a team in India to be dealt with and any correspondence taking months at a time to get a response and terms we take for granted were regularly misconstrued and required further explanation. All the time I'm paying the mortgage and of course increasing equity, not that it matters to them I have also face great health issues made far worse with this constant fear.

Has anyone dealt with HSBC India and come out the other end? is there anyone that represents HSBC in the UK that can converse normally to resolve such matters promptly.

Is there an independent body such as the FCA for banks that can assist in progressing a resolution so I can have my life back?

 

[Paul Norman]

Obviously, a personal garuntee is just that, and now the amount is due.

However, the reality is that most banks will be wanting to agree a payment plan that is achievable - that way, over time, they get their money.

But. HSBC. Because they do not appear to want to sit down and talk through the problem, and want always to deal with it remotely, it is very close to impossible to have any normal solution to the problem, and it can, and will, take years to get any kind of outcome.

The upshot of this is a lot of angst on your part. It does also mean, however, that they have a hugely lower rate of success at recovering the money than they might otherwise achieve.

I would set out, in writing, precisely what you want to achieve as an outcome to this, and the next time they phone tell them precisely what that is. Follow it up in writing. Insist on it persistently. Obviously, a discussing would be more professional, but they won't do that.

 

[Chris Ashdown]

I personally would go into my local branch where the account was registered and demand to see the manager, they are the only person who can intervene

Refuse to talk to India ask for all correspondence in writing

 

[Trader4]

We were under the care of a business manager and towards the end he retired and was never replaced -
Correspondence is via email and from India - I don't have a choice do I?

 

[Trader4]

there must be others whom have dealt with HSBC and perhaps further down the line that I am - I could enlist a solicitor yet fear their cost will mount if no progress is ever going to be made.

 

[thetiger2015]

I don't think a lot of the big banks have local or regional business managers now. They've moved them all to 'Teams' who are only accessible by phone and you can end up getting stuck in a loop of being passed around between departments and you're never able to speak to the same person.

A few years ago, when I had the same problem, I was able to talk to HSBC Collections and they were very helpful. I was able to agree to a very long payment plan over a few years and eventually, they wrote to me and said I could call them to arrange a smaller final payment sum.

Are Citizens Advice any help? I know it's a business issue but if you're having problems in communicating with your bank, they may have someone you can contact and they'll give some free advice.

 

[Mark T Jones]

The banking ombudsman may help, if there is evidence that you are being unfairly treated.

As Paul has said above, this can actually be somewhat in your favour as time will be on your side.

My suggestion would be forward to put forward a realistic plan of what you can repay (either a heavily discounted up-front sum or modest but sensible term repayments). Then wait for them to make a decision. You can realistically argue that any fees incurred after this point are unreasonable as you have taken the initiative

 

[mhall]

HSBC do have a very helpful team in Birmingham that are the ones who deal with companies that have gone bump but the Directors still owe money under a personal guarantee. If the company has gone bump then you will be unable to put money into that account as it will be closed. HSBC open a separate account and basically offer the Directors a loan to cover the amount owed, paid back over five years and there is no interest. I liaised with them for my Sister a couple of months ago and they couldn't have been more helpful.

As long as you are polite they will (as they have to) take you through twenty minutes of questioning to make sure you can afford the payments that you are offereing. In our case she offered £150 a month but they refused to accept more than £80 as their computer said that was all she could afford.

I can't for the life of me think what this loan was called in "HSBC Speak" but I was amazed when he told me there would be no interest and my Sister cried when he told her that saying "we are not here to make things worse"

As much as I hate banks I must say I was very impressed with their firm but pragmatic approach.

 

[Trader4]

This is music to my ears - I've tried many numbers to reach someone in the UK but to no avail - is there anyway you can give me a contact no for Birmingham so I can try to make some progress, until I resolve this I am a prisoner in my home, I need modifications for my disability but have to struggle as it seems a pointless waste of money if they come after the house

 

[Mark T Jones]

In reality, the chances of them coming after your home are very slim unless you are living considerably above your status. Put in context, the last one I saw was a family of 4 (Mr, Mrs and 2 kids) living in a 5 bed house in a gated development - it still took them 2 years to recover - the judge agreed that 3 beds was sufficient for their needs.

 

[Trader4]

Was this with HSBC? the trouble is in dealing with India the fear they put on me is serious, they cannot grasp what it is causing simply because their interpretations are not understood

 

[Trader4]

I've been on the phone to a call centre in the UK for nearly 2 hours, 38 mins of that was on hold - they cannot help me, they will not give me any info on a collections department in the UK and when I write to HSBC in Canary Warf as I have in the past they simply send my letters to India as the replies come from there - Perhaps I should go to the press now ?

 

[Chris Ashdown]

Just record the talk and send with a complain to the Ombusman

 

[mhall]

I'll see if she still has the original letters but paperwork is not her strongest point - it's what got her in this mess in the first place

 

[Ian J]

I haven't checked it out but there is a section on Legal Beagles dedicated to HSBC

http://www.legalbeagles.info/forums/forumdisplay.php?13-HSBC-Bank

 

[mhall]

The name on her letter is Connie Smith, Senior Collections Manager. The number on the letter is 0345 603 1289 . Might be of some use.

HSBC work in "silos" so one department will not know what another is doing. Basically, if your account has been sent to the HSBC Repayment Service then you will need to try and get it re-assigned. With a little luck you will get to speak to someone sensible ( the repayment service is, I believe, bonus led so don't expect any help from them)

Ironically, my sister received a letter from another HSBC department telling her they have reviewed her account and are delighted to continue the overdraft, even though the business has been closed since January and the repayment schedule has been in place three months. Silos at their best.

 

[mhall]

Sorry, I should add that HSBC head office is now in Birmingham, not Canary Wharf. My Sisters letter came from Coventry and I have just noticed another number in my hand writing which is 0345 850 0622. That may have been the number we finally got some sense from.

 

[Trader4]

Thank you so much for this, it is a great help and at least they may learn from it. I will let you know how I get on once I've downed a few coffees and anything else to calm my nerves

 

[Trader4]

Also thank you Ian J, this is an interesting link, if I get no where with the above I may well enquire there also - I wish I had come here sooner!!

 

[Real Business Rescue]

Real Business Rescue specialise in business restructuring and insolvency. You may want to speak to someone about your personal guarantee and we refer guarantors to Personal Guarantees UK. They offer free advice and their number is 01625 462 587 should you wish to speak to them.

 

[mhall]

Personal Guarantees UK were dissolved in May

 

[Real Business Rescue]

It is a trading name and they are still operating. They normally offer free advice and directors can use it as they like.

Thanks

 

[Ian J]

Did they manage to wriggle out of their personal guarantees

 

[Trader4]

Just wanted to thank the very useful info here, particularly mhall, the contact details were right - I made a call! it took some time but there are a few developments, though it is early days and I will update when I'm through if I survive.

 

[mhall]

You will survive. As much as I hate banks, it helps no-one if they drive people to bankruptcy

 

[Mr D]

Though bankruptcy can be a help at times - clears debt out of the way. Its not always a bad thing for the individual.

 

[Newchodge]

Though bankruptcy can be a help at times - clears debt out of the way. Its not always a bad thing for the individual.

Provided they can afford the fee!

 

[Mr D]

Provided they can afford the fee!

Yes if doing it yourself, its a hefty fee but wipes out how much debt?
Or can wait for a creditor to bankrupt you - which is free to the person being bankrupted. Not cost effective for them however unless there are sufficient assets.
Unless on the principle of the thing.

 

[Deleted member 293411]

Hi having been with HSBC for some 25 years (20 for business) I have been subjected to various texts over the last 8 weeks and as asked phoned their business line (Birmingham) whilst the 1st person to answer is very helpful and it may take 20 minutes, they can not answer all your questions and I can not then get to the 'Top Brass'. Is this the age of progress where we have lost the local bank manger for the technical/digital 'wiz kids'? HSBC are not flavour of the month.

 

[Trader4]

Well I am still here to tell the tale, and finally have a conclusion in site - I remain traumatised by the whole situation but cannot thank mhall here enough for the help she/he provided just at the right time as I was giving up! - I didn't realise how bad things were for me,

 

[Mr D]

Congratulations.

 

[mhall]

It only gets bad if you give up. Glad to be of help, that's the whole reason most of us are here.