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HFC Bank Ltd – What Happened to Them?

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Scott
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Scott Nelson

Managing Director

MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.

Learn more about Scott
&
Janine
Janine Marsh Profile Picture

Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

Learn more about Janine
· Feb 6th, 2024
Could you legally write off some debt? Answer below to get started.

Total amount of debt?

This isn’t a full fact find, MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

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HFC Bank Ltd Debt

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Are you puzzled by a letter from a debt collector about HFC Bank Ltd? You’re not alone. Each month, over 170,000 people come to our website for advice on matters just like this. 

In this article, we’ll:

  •  Explain what happened to HFC Bank Ltd.
  •  Help you find out if you still owe money to HFC Bank Ltd.
  •  Discuss what to do if you can’t afford to repay your debts.
  •  Talk about how to manage your debts.
  •  Guide you on where to get professional help.

We know how worrying it can be to get letters from debt collectors. After all, nearly half of individuals who deal with debt collection agencies have experienced harassment or aggression1.

Our team has faced these same issues. So, we’re here to help you make sense of things. Our aim is to give you the information you need to deal with this situation in the best way possible. 

Could you legally write off some debt?

There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

What Happened to HFC Bank Ltd?

HFC Bank Ltd was placed in liquidation on 13th January 2017.

Address:
Hill House, 1 Little New Street, London, EC4A 3TR

Registration Number:
01117305

Phone:
0370 010 0453

Email:
[email protected]

Website Address:
http://www.hfcbank.co.uk/

HFC Bank Ltd. may also be known as:
HFC Bank Ltd. Limited
HFC Bank Ltd. Ltd
HFC Bank Ltd. Group
HFC Bank Ltd. Bailiffs
HFC Bank Ltd. Debt Collectors
HFC Bank Ltd. Debt Collection
HFC Bank Ltd. Agency
Hfc Bank Limited

» TAKE ACTION NOW: Fill out the short debt form

Do I Still Owe Money to HFC Bank Ltd?

If you had debts owed to HFC Bank before they went into liquidation, you still owe the money.

When a bank enters liquidation, it basically means that it has either become insolvent or is going to become insolvent imminently. In these situations, everyone’s top priority is protecting customers and their money.

This usually means getting a financially healthy bank to acquire the assets and deposits of the failed or failing bank.

If you had debts with the failing bank, they will have been transferred to the new bank when they bought it.

So, in this case, any debts that you had with HFC will now be owed to either Sancopia Portfolios or HSBC.

Typical Debt Collection Process

When the debt transfer occurs, it’s common for the new creditors to initiate contact by calling or sending letters. This is part of the debt collection process.

Here’s a quick table that will help you better understand the debt collector timeline. For more information, be sure to check out our specialized guide.

Stage Actions What you should do:
Missing one or two small payments Calls and letters from the debt collector asking for payment. They may enquire about reasons for missing payments. Contact the debt collector and offer to pay what you can. If you are struggling to pay the debt, get in touch with us to explore your options.
Missing large or multiple payments Their contact will become more frequent, urgent, and threatening. Contact the debt collection agency and offer to pay what you can. You may also make a complaint if you think the letters are a form of harassment.
Debt collector visit After a few months, if the debt is significant (£200+) you will receive notice of a debt collector visit. They have to notify you before arriving. Debt collectors cannot take anything from your home – they may only ask for payment. If a debt collector shows up at your home, ask them to show proof of the debt and their ID through a window. Do not open your door or let them in. You can arrange a payment plan with the debt collector, but make sure to get a receipt of this.
Court If you still do not pay your debts to the original lender/debt collector agency, they will take you to court and either attempt to:
– File a CCJ against you.
– File an attachment of earnings order.
– File a lawsuit against you.
You must show up to your court date. From here, you can either dispute the debt, or the judge will likely suggest a manageable repayment plan for you.

Remember that in order to keep Sancopia Portfolios or HSBC from filing a CCJ against you, it’s important to contact them and offer to pay what you can.

How a debt solution could help

Some debt solutions can:

  1. Stop nasty calls from creditors
  2. Freeze interest and charges
  3. Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:


Situation

Monthly income £2,504
Monthly expenses £2,345
Total debt £32,049

Monthly debt repayments

Before £587
After £158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

Get Started

What Do I Do If I Can’t Afford to Repay My Debts?

The average unsecured debt amount has increased by 27% year-on-year (to £16,174)2. So, it’s common for people to struggle with debt. 

If that’s your case, and you can’t afford to repay your unsecured debts, you may need to consider a debt solution.

There are several solutions for unaffordable debts in the UK, so I recommend speaking to a debt charity to get some free financial advice. THeir advisors will be able to walk you through your options in detail and find the best debt solution for your finances.

I have linked some charities that offer these services for free in the next section.

Debt Management Plan (DMP)

A DMP is an informal debt solution that lets you pay off your debts via a single monthly payment.

Because it is informal, it is not legally binding so you are not tied into a DMP for a minimum number of payments.

Individual Voluntary Arrangement (IVA)

An IVA is a formal agreement between you and your creditors. You agree to pay a monthly sum that is distributed amongst your debts, and your creditors agree not to contact you during your IVA.

IVAs typically last for 5 or 6 years, and any outstanding debt is wiped off when it ends.

Keep in mind that IVAs are not suitable for everyone. You need to owe several thousand pounds to more than one creditor to be eligible. You also need to demonstrate that you have some disposable income every month.

Trust Deed

IVAs are not available in Scotland. Instead, you will need to opt for a Trust Deed.

Trust Deeds work in the same way as an IVA – you pay an agreed sum each month that is shared amongst your creditors, they can’t contact you, and any leftover debt at the end of your Trust Deed term is written off.

Debt Relief Order (DRO)

A DRO is a good option for those facing financial hardship with no assets and little income.

For 12 months, you make no payments, but your creditors freeze your interest and don’t contact you.

If your finances haven’t improved during this year, you may be able to write off your unsecured debts.

Bankruptcy

If you have debts but no realistic possibility of ever paying them off, you may need to declare bankruptcy.

Bankruptcy has an unfair stigma attached to it as it may be your only way of getting a financial fresh start. That said, it is a serious financial situation that should not be taken lightly.

Sequestration

Sequestration is the Scottish version of bankruptcy.If you have little income and no valuable assets, you may be able to apply for a minimal asset process bankruptcy (MAP). A MAP is a quicker, cheaper, and more straightforward version of sequestration, so worth considering.

Could you legally write off some debt?

Answer below to get started.

How much debt do you have?

This isn’t a full fact find, MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

References

  1. Indebted Debt Collection Survey
  2. StepChange Personal Debt Statistics in Scotland 2022
The authors
Scott Nelson Profile Picture
Author
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh Profile Picture
Debt Expert
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.
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