Hi just been reading up on other threads and it seems You can't CCA for an overdraft??

Is this right? if so what would requesting a SAR achieve for my disputing the deafault on an overdraft account?

Many thanks

My partner has just received a statement from halifax to say her credit card limit has been increased.

Surely they would do a credit check prior to a limit increase??

Is this normal when a default is active?

Thanks

Thanks again can i ask why you suggest the S.A.R over the link i posted above?

If i cant get the signed credit agreement with the t&c's it would then deem the debt unenforceable therefore they would have to remove the default. Am i correct with this?

I didn't want to go down this unlawful dept route as we're happy to honor the debt but i feel this is the only option.

Thanks

Rich

Personally I'd suggest the S.A.R. first and foremost. Ensure you ask for case notes in the request and anything else - there's some infor on the site here.

 

I'm sorry i'm a little confused - final demand letter, so you did get one? In that case not a default notice preceeding it? Metropolitan are HSBC's in-house collection agency with access to all your account.

 

If you 'agreed payments' to them then as far as I know their points system will begin on any failures. It had probably started to accumulate prior to you repayment agreement. You did the agreed payments verbally or by letter?

 

Overdrafts are by agreement with the bank. They say but seldom ever recall in full at their discretion. I'm confused how if you had an agreed overdraft that you ended up with a repayment schedule or is it that the overdraft facility ran out and was not renewed? By reading what you have said I guess you were repaying at £50 a month. So how much was it to start with and how long did it remain unpaid? I'd suspect Metropolitan advised you of everything. There agan a bank would not look on things too well if you have an account with an agreed overdraft, ran it up and then no longer touched the account - The alarm bells would start to ring.

 

Michael

Yeh she changed over to a halifax account, the account wasn't touched for 3 months and started paying the £50 pm when the cancelled the overdraft facility, this was continued for 8 months with 8 payments, they then closed the account with no letter and only found out when she went into branch to pay in additional money (the branch also could not find out why the account was closed which to me if they dont know why the account was closed how have they informed us?)

Thanks

The account should have a default notice - check the dates and everything else on it carefully as HSBC seems to fail often. Two weeks after the default notice will probably follow a final demand however if you have an 'agreement' then the formal demand might not be sent and there are exceptions - phew here we go as (I see it)!

HSBC have discretion but seldom use it. They operate on a points system - 1 point for each missed payment. Six points and the default notice will generate. Now before you say well I paid £XX a month as agreed there's a twist. For example say your payments were £100 a month but due to hard times you agree to pay £50 a month. So you are paying 50% of the payment and that will start the points counting = 0.5, then you only pay 50% of the next payment, again £50 so the points are now 1.0 and so on. You should also consider that the CRA files are getting marked up. HSBC run around 2 months behind on late payment CRA file updates but it'll show them in red by now and the last once eventually will show a 'D' (for default) in a nice red circle. The file would show the deliquent balance will if you are making part payments will vary as times progresses and bear in mind the details are not 'as it happens'.

 

I think the next step is to do a S.A.R and within 40 days (if lucky) and a tenner spent you can see all the paperwork generated by HSBC and check it all out. Sadly as previously mentioned HSBC as other banks are exceptionally reluctant to remove defaults (which remember will remain for an uncomfortable 6 years!). To a potential lender a default might as well be a CCJ and even if 'satisfied' (as in paid up entirely) it's not going to vanish for those years.

If they have entered a default on the CRA's then I'd suggest you decide to no longer verbally communicate with them but to require all further contact by letter. Remember thought to take no nonsence from them at any stage - heck that sounded like fighting talk. Oh, if it might damage any current account with them I'd suggest opening a parachute (basic) bank account elsewhere. I've used LloydsTSB and the Co-Op as you can open the accounts by telephone with a zero opening balance.

 

There are some great people on here who will no doubt help you along the way as they have with myself. More laughs to follow on a new thread about my wife's HSBC credit card.

Michael

Thanks for this, when you say 'part payments' do you mean part of the agreed payments i.e loan, this is an overdraft facility that my partner had on her no closed account (debt passed on to Metropolitan to recover).

I think i will have to go down the signed credit agreement route as the account is closed and the default has been placed on the account (unbeknown) 3 months ago.

Are they still right to issue the default when even in the final demand letter it states that were are happy if a sufficient monthly payment would be agreed (which it was) and we didn't hear anymore until the account was closed?

Can anyone advise me whether the best route to take is to challenge the default or go the signed credit agreement route using this link?

http://www.consumeractiongroup.co.uk/forum/legal-issues/173201-why-you-shouldnt-use.html#post1868913

Many thanks

Hi everyone

I have received a letter from HSBC today containing an electronic copy of the default notice (which i requested). I'm not sure if it actually is a default notice? The letter head mentions FINAL DEMAND and also includes a statement of means. I can scan a copy of this letter if it helps.

Is a default notice normally have a header of FINAL DEMAND and include a statement of means? It also mentions that they want a payment in full or a proposal for repayment by installments (which she did do).

Please could anyone advise where i could go from here??

Since the account is around 7/8 yrs old is it worth going down the signed copy of the credit agreement route??

My partner has had the account for about 7.8 yrs although her account was transfered to a graduate account around 4 yrs ago (but she doesnt think she signed a new agreement).

many thanks

You should have received a default notice that should list the reason/s for placing your account in default. If you didn't receive this then getting a copy of the notice will be your starting point.

 

Unfortunately your incorrect regarding removal of a default if the account is in dispute in fact they have been marking peoples credit files with defaults just because they have disputed their accounts although they would deny that .

 

The credit reference agencies are a byproduct of the banks and as yet there is little legislation to control what information is placed with them or how the banks use that information so they can basically do what they please.

 

pete

thanks

So are they right to place a default on her account because she changed her income over to another bank even though she had set up a direct debit of £50 so the overdraft was coming down?

thanks

Thanks.

Are the bank correct in applying the default as the account had an agreed overdraft and the account was receiving monthly payments via a standing order/dd. Surely them setting up this standing order/dd they are accepting this as a sort of payment plan.

Could anyone explain the the reasons a bank could issue a default on a bank account.

Also, am i correct in thinking that if they fail to respond to a CCA section 78 request the account/debt is then in dispute and the default will be removed until the dispute is resolved??

Thanks

Hi i would appreciate any advice that would aid me in removing a default from HSBC from my partners student overdraft (very similar situation to the thread from chris1977 http://www.consumeractiongroup.co.uk/forum/hsbc-bank/126335-trying-remove-default-hsbc.html

Although there were monthly payments of £50 or more made via a standing order setup over the phone 6 months prior to them closing the account without notification of closure and default (we only found out about the closure when she went to the branch to pay in additional money, and they couldn't explain the reason for closure and gave her the number for Metropolitan to set up a payment plan.

We only found out about the default today when we went to our mortgage lender as we are planning to move house but now cant until this is removed.

Does anyone think we have grounds to speak to the branch again explaining the situation as we feel the account should not have been closed as it was receiving money each month (i think they were unhappy as we had both transferred our custom to another bank and wanted the overdraft payed in full).

All we want is the default removed and we are in a position to pay the remaining balance in full, are they right to issue a default when there has never been a time when the account has not been credited for more than 1 month (as this is an overdraft and not an agreed loan that she has missed payment of).

Sorry if this is information overload, so many questions so little time.

Any thought/advice appreciated.

Rich