This morning I had a thick wad of paper squeezed through my letterbox from HSBC (my bank). The pack contained an offer of a managed loan to cover the 15k I owe them (loan/credit card & overdraft). The loan itself was £205 per month, scheduled to last 14 years(!!!) at an interest rate of 13.75% making a total of just short of 30k repayable . The helpfully attached a concession (cancellable at any time) saying they would except £165 a month (at 7%) for the time being.
I will of course be politely declining the offer. It did strike me as ill-concieved from there point of view as £165 was only the token payment I made them this month (I had some one off bills to pay car tax etc). Under the DMP proposal sent to them the actual amount I am offering to pay is close to £300 per month?!?!
I've heard that this is all very standard stuff from HSBC and that shortly they will pass my account over to Metropolitan (their in-house collections agency) - well here's hoping!