HSBC Unfair Default

[Dazzle*]

Here goes.

 

I had a HSBC account which I had held for a number of years - it was set up as part of a scheme where HSBC would visit my school - I am unfamiliar with the type of account it was other than it was incredibly basic.

 

I used this account to pay my wages from my part time job into etc and had a couple of direct debits. I had a few concerns (looming redundancy) and confirmed with the bank that it was impossible to go overdrawn on this account. In August 2011 I was finally made redundant and instead decided to go to university. I attempted to get a student account with HSBC and was refused. I visited Halifax on the same day and was approved and took part in their account switching service - my balances and direct debits would automatically transfer over and the HSBC account would close. In September 2011 I went to university and my Halifax account was functioning as imagined - balance and direct debits had switched over. I couldn't access my HSBC online banking (paperless banking) and assumed that was the end of HSBC.

 

I applied for a mobile contract last month and was refused and advised to check my report - lo and behold there's a default on there from HSBC filed in February 2012.

 

I visited my local HSBC branch and was told the account was closed and to speak to the Customer Care Team - they advised the account had been closed and to speak to Metropolitan the collecting agent - I haven't heard from Metropolitan - my mail WAS being forwarded. I again telephoned the Customer Care Team who advised the account was closed and the default applied in February 2012 with the outstanding balance. I asked for this to be explained - I was advised going back to August 2011 there was a direct debit that wasn't paid and I was charged fees - these fees then made me overdrawn and subsequently fees had been levied each and every month until February - the outstanding balance is made purely of fees. I explained I was under the impression the account was closed - apparently as the direct debit hadn't been cancelled the account remained open. I have not heard once from HSBC - they never wrote to me (else I'd have the forwarded letters), I couldn't access the internet banking (where I monitored my account, ergo believing it had been closed) and there was no default notice served by Metropolitan nor had they contacted me - HSBC have an up-to-date mobile number for me.

 

My query is, where do I go from here? The Customer Care Team agent was getting quite irate asking me to clarify transactions on my account etc and has agreed to send me statements from August 2011 until February 2012 - but I don't know how these will help me as they'll tell me exactly what I already know.

 

I have compiled a SAR but I don't see how this will help either? As it's very clear what has happened.

 

How do I get the default removed? The outstanding defaulted balance is only £104 - all of fees - which I am happy to pay. But I want the default removed, not just settled.

 

Who do I need to write to?

 

Thanks!

[BRIGADIER2JCS]

Hi welcome.

 

I suggest you write to Metropolitan about this as a Formal Complaint, try the following:

 

The Data Controller:

 

 

Ref: account number xxxxxxxxxxxx:

 

Formal Complaint:

 

Breach of The ICO Technical Guidance on Defaults.

 

Sir / Madam,

 

I refer to a default entry on my credit reference agency files (screen print attached), relating to HSBC account No.xxxxxxxxxxxx:

 

This default has been placed in breach of the ICOs Technical Guidance on Defaults which states '' If a default sum consists of charges without which the account would NOT have been defaulted NO default should be placed.

 

This matter has arisen because of the failure of the bank to inform me of a failed direct debit, the bank had been provided with up to date contact details!

 

No default notice was ever received.

 

Therefore I now require this default entry is removed from ALL credit reference agency files to which it has been reported, Metropolitan and its 'client' HSBC must be aware that this is unfair conduct which also breaches the OFT Guidance on Debt Collection, also such unfair and incorrect data seriously affects an individuals ability to obtain credit at normal rates and may preclude obtaining credit facilities completely.

 

Therefore I require HSBC/ Metropolitan to remove ALL adverse data from ALL credit reference agency files to which this account has been reported.

 

Considering that this situation has been caused by the incompetence of HSBC it must also seriously consider making suitable financial redress for the stress, embarrassment caused by being refused credit and any consequential losses arising from the banks conduct ( attach any proof s you have of this), an amount of £500.00 is what I consider reasonable in the circumstances.

 

This letter is sent by recorded/signed for post and receipt will be checked.