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default on student overdraft without notice


ravesafe
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hello one and all,

 

i've been enjoying the summer holidays and i have been looking at my HSBC and metropolitan collection services correspondance.

 

background:

 

i owed hsbc 1800 quid (sorry pound sign is bust) as off nov 09. they contacted me and stated if i did not start a repayment plan then my account would be 'defaulted'. luckily i had just found work and agreed 200 p/m. i received a letter from HSBC thanking me for setting up a repayment plan and they look forward to receiving payments.

 

all was going well until the 22nd of december when i recieved a call from MCS. i ignored the call as i was at work but check online later that night.

 

on Christmas eve i received a letter from MCS stating that my debt had been passed over to them and i was to repay my overdraft via them.

 

i have received NO letter from hsbc stating that my debt has been passed over to MCS.

 

i continued repaying at 200 p/m as arranged before but still recieved the same template letter stating that the repayment plan had expired and i must contact them regarding repayment. i wrote to them and explained that i had not breach the repayment t &c's and refused to increase my payments as i was currently only earning 400 p/m working part time.

 

i wrote to hsbc complaining about the way i had been treated, the letter i recieved simply stated that i owed them money and in the customer care managers opinion, there had been no wrong doing on their half.

 

i have now re-payed my over draft but have not received a letter stating the amount owed is settled.

 

 

current situation:

 

i am aware that i have been treated unfairly by hsbc and mcs. this may have something to do with me having my wages paid into a parachute account which i now use.

 

i now have a default notice on my credit file. i was not made aware that my account was defaulted and i have nothing in writing.

 

i am writing to MCS to obtain confirmation that the amount is now settled. i have had no correspondence since the last payment.

 

i wil also be requesting SAR from both parties.

 

 

Questions / Concerns

 

1) when i recieve all information from my SAR request, i will be looking for any letters sent to me regarding any default notices on my account. if no letter has been sent to me stating this do i have a good case to go to the FOS?

 

 

2) will a simple reply to my letter stating that the debt is settled be adequate evidence in case of future problems with MCS?

 

3) what is the time limit to complain to the FOS?

 

4) if i can provide evidence that i have been treated unfairly what will the outcome be?

 

thank you in advance guys. i get alot of help from this site. keep up the good work!

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Hi ravesafe,

 

If you have that letter agreeing to your payment of £200 per month , I would start your report to FOS now ...... they had no right to do that, or to default you . Report them , and ask for FOS to direct that the default be removed by HSBC. They had no right to pass you MCS after having accepted your repayment terms .............

 

It's good that you have a parachute account , so that you can treat this matter in isolation .... without them making it worse .

 

As for your other queries :

 

Questions / Concerns

 

1) when i recieve all information from my SARlink3.gif request, i will be looking for any letters sent to me regarding any default notices on my account. if no letter has been sent to me stating this do i have a good case to go to the foslink3.gif?

 

As I said i think you have enough to go to FOS with now ...... if you start a complaint and get a case No. you can always update it ..... but I think you should also give HSBC a chance to sort it ..... tell them what they've done , support it with a copy of their letter , and advise them that you're taking it to FOS .......that may get some action too ....... (but remember to send it 'Recorded Delivery ')

 

 

2) will a simple reply to my letter stating that the debt is settled be adequate evidence in case of future problems with MCS?

I would ask HSBC for a letter confirming the debt is settled and ask them to tell MCS to back off (after all MCS are only their Debt Collection branch ....they don't work for anyone else) ....

 

3) what is the time limit to complain to the foslink3.gif?

 

|See above ....... I'd start a complaint now ........ that will take care of the time limits

 

 

Hope this helps ,ravesafe , but someone else may come along with more advice .........

 

]

Edited by johnnymitch
Tidying up ...........

Nemo me impune lacessit

 

 

Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

 

If you think I've helped you please feel free to tickle my star :-D

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thank you Johnny,

 

i'll be checking over my file and drafting my letters tomorrow.

 

for clarification:

 

hsbc passed my debt onto MCS, is that technically a default?

 

or is a default simply a letter stating that you are in arrears?

 

hindsight is a wonderful thing and i have now realised that i was simply intimidated into accepting the debt had been moved over to MCS. thank to this site it will never happen again!

 

i will write up a letter tomorrow explaining why the default should be removed and i will be contacting FOS if it is not.

 

i have a funny feeling this will not be easy.

 

does anyone know the direct addresses of whoever it would be best to send this letter too?

 

all the best - ravesafe

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thank you Johnny,

 

You're welcome ravesafe :)

 

i'll be checking over my file and drafting my letters tomorrow.

 

for clarification:

 

hsbc passed my debt onto MCS, is that technically a default?

 

No that's not a default ...it's a breach of Regs though , if it's passed to a third party whilst the account is 'In Dispute'

 

or is a default simply a letter stating that you are in arrears?

 

To notify a Default they have to be very precise in how they do this or it's invalid ....... this link might help a bit :

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/179944-default-notice-period-7-a.html

 

Quote:

88. Contents and effect of default notice.

— (1) The default notice must be in the prescribed form and specify— (a) the nature of the alleged breach;

 

 

(b) if the breach is capable of remedy, what action is required to remedy it and the date before which that action is to be taken;

 

© if the breach is not capable of remedy, the sum (if any) required to be paid as compensation for the breach, and the date before which it is to be paid.

 

(2) A date specified under subsection (1) must not be less than [F1 14] days after the date of service of the default notice, and the creditor or owner shall not take action such as is mentioned in section 87(1) before the date so specified or (if no requirement is made under subsection (1)) before those [F1 14] days have elapsed.

 

(3) The default notice must not treat as a breach failure to comply with a provision of the agreement which becomes operative only on breach of some other provision, but if the breach of that other provision is not duly remedied or compensation demanded under subsection (1) is not duly paid, or (where no requirement is made under subsection (1)) if the [F1 14] days mentioned in subsection (2) have elapsed, the creditor or owner may treat the failure as a breach and section 87(1) shall not apply to it.

 

(4) The default notice must contain information in the prescribed terms about the consequences of failure to comply with it [F2 and any other prescribed matters relating to the agreement].

 

(5) A default notice making a requirement under subsection (1) may include a provision for the taking of action such as is mentioned in section 87(1) at any time after the restriction imposed by subsection (2) will cease, together with a statement that the provision will be ineffective if the breach is duly remedied or the compensation duly paid

 

hindsight is a wonderful thing and i have now realised that i was simply intimidated into accepting the debt had been moved over to MCS. thank to this site it will never happen again!

 

i will write up a letter tomorrow explaining why the default should be removed and i will be contacting FOS if it is not.

 

i have a funny feeling this will not be easy.

 

does anyone know the direct addresses of whoever it would be best to send this letter too?

 

all the best - ravesafe

 

 

Send HSBC letter to \:

Service Quality Team

Arlington Business Centre

Millshaw Park Lane

Leeds

LS11 0PP

and look at this link for FOS :

 

http://www.financial-ombudsman.org.uk/

 

|Hope this helps ................. :)

Edited by johnnymitch
Tidying up .............

Nemo me impune lacessit

 

 

Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

 

If you think I've helped you please feel free to tickle my star :-D

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Hi. But is a default notice required on an overdraft? apparently not. also the CCA 1974 doesn't apparently apply. so the s.88 stuff above presumably doesn't apply? I would like to know what rules and regs govern a bank's default letter (because they go ahaed and notofy the CRAs opf a "Default" regardless and therefore seem to be allowed to have their cake and eat it)

Mozzone

_______________

Taking on the bloodsuckers

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