@hsbc_uk_help HSBC managed loan, short settled in 2011, got a default! need it gone!

[bones01]

Hi , was after a but of advice if which way is the best to go .

 

I had an loan in dispute with HSBC re incorrect credit agreement , to which they put a default onto the account .

 

They in 2011 accepted a full and final settlement for a partial amount as the credit agreement was floored.

 

They have logged a default on my account and have marked it as satisfied and the balance as zero.

 

I sent a letter to them requesting removal of the default a few weeks ago

trying my luck as I am trying to move house ( new mortgage) and don't want this holding me back .

 

Thy refused and have since updated the credit file as the balance being £9000 odd until last month

and this month £0 so it now looks like the balance has been not settled for over 2 years and have showed a recent update of still in default.

 

My question is if the account was disputed can they still issue a default ?

 

Can they issue the default if credit agreement was floored and they have issued me

in writing that the amounts were in correct which is why they eventually gave in to a f&f offer.

 

And also how can they if it was settled in 2011 update the balance to last month still showing the original default balance ?

 

How do I get this removed ?

 

Thanks I'll await your advice

[dx100uk]

what is the original default date on the debt summary

 

doesn't matter what they update it with

 

on the defaults 6th birthday

 

the whole account will vanish

 

dx

[bones01]

Hi they have stated the default date as March 2011 , so I have a while yet if it's 6 years , which is why I'm seeig if there's another option to get it taken off

[dx100uk]

tell us the full history

 

they can't have marked the debt defaulted when you F&F'd in 2011

it must have been before that.

 

dx

[bones01]

The managed HSBC loan on the credit agreement

 

the figures did not add up due to leap years and the final amount did not = the monthly amounts required .

 

I put tha account into dispute and

 

after about 18 months of battling they accepted a full and final offer of approx £3500 of a £9000 odd balance .

 

They have noted a default on the account according to experian as march 2011.

 

Just having a look through some posts ,

I was wondering if the credit agreement was floored ( unenforcable )

and they accepted a f&f would I be able to get them to remove the default?

 

should I go down the line that the default was added in correctly while the account was being disputed ,

 

I also at one point involved the FOS who sat on the fence would not document to be unenforcable

even though figures did not match

Many thanks shall await your advice

[dx100uk]

aha the story deepens.

 

HSBC managed loans are very dodgy indeed

 

i'll get someone to pop in and explain.

 

simply put, they merge a debt covered by a consumer credit agreement

with another debt NOT covered by it...very naughty.

 

the fact that you got such a HUGH discount shows they know theres

something very very wrong with 'debt'

 

have you ever sent them an sar

 

might be a good idea.

 

you'll prob find that both merged debts had

PENALTY charges/PPI etc etc

leading to a large discount/reclaiming still to do.

 

this MIGHT result in the removal of the default if no other route can be found

 

 

 

dx

[citizenB]

Hmm, not sure where you will go with this bones.

 

Managed loans were indeed not the best of financial product to get caught up with. But having paid it off by way of a F&F , I am not quite sure what you can do to challenge any flaws.

 

Was there Payment protection insurance added.

 

Did they do a needs and means form with you (affordability)

 

I am only assuming here as this was the norm.. that this loan was "offered" to you in order to hoover up a credit card/loan debt along with an overdraft that was made up primarily of default charges ?

 

Is the default date correct ? eg.. up to 6 months after the default occurred ?

[citizenB]

They should be reporting accurately. So if this implies that you have not paid the account then you should ask for a notice of correction to be placed on the record whilst you attempt to get HSBC to either report accurately or remove it.

[bones01]

Hi all , thanks for your replies I'll try and remember all te questions to answer as follows,

 

The manged loan was made up of overdraft , credit cards and a loan I think ,

I can't remember if they did an affordability test sorry .

 

There was some unfair charges involved as we claimed them back prior to the f&f

about 12 months before from the overdraft credit card I think .

 

However this does mean some of the balance would have prior charges.

 

I'm only looking at the date of default on experian , how do I find my exact date of default ?

 

Yes I have sent a SAR previous to get my managed loan details to get it disputed and eventually f&f.

 

Regarding the credit details now ,

previously is stated settled with each month showing £0 and an 8 default

 

However since I have asked them to remove it last month they have updated my file ,

and added balance to last month of £9000 odd with a default and only £0 last months ?

Surely this should date back £0 to settlement date ? 2011 I think they may have defaulted me on the date if the f&f ???

 

I'm desperate to get them to take this off and am just wondering the best route

1) unenforcable - remove as not enforcable incorrect data?

2) can't remember default notice coming

3) can they default if in dispute as was in dispute right

Upto f&f

 

Oh and how and who do I apply for a notice of correction ?

 

Thanks for all your help it's very much appreciated x

[citizenB]

The settled date should be accurate. So if it was settled in 2011 then all reporting moving forward to the current date should be showing as £0.

 

I am not sure how you ask the CRA to put a notice of correction on your file. It might be worth having a read of their website or telephoning/emailing them to find out.

 

If you have the data from your SAR then the original default date should be on the communication log somewhere.

[bones01]

I sent an Sar prior to the default , so should I request another or would a request for a copy of my agreement and default be ok ?

Should I inform HSBC and oft /FOS that am applying for correction as incorrect ?

Would that put more pressure or them to remove it if done that incorrect as well ?

Thanks

[bones01]

Just checked online default date 23/3/2010 , date satisfied 12/4/11

However in the bands 1-12 months the balance still shows £9000 odd upto the month before this !

What's that all about ??? Grrrr

[citizenB]

I sent an Sar prior to the default , so should I request another or would a request for a copy of my agreement and default be ok ?

Should I inform HSBC and oft /FOS that am applying for correction as incorrect ?

Would that put more pressure or them to remove it if done that incorrect as well ?

Thanks

 

Ah right..

 

I wonder if it would be worth trying to reason with them first.

 

Perhaps write a letter headed "Formal Complaint" in the first instance - explain what the problem is and ask them to correct it.

 

Whatever you do, this is not going to be quick.

 

Meanwhile, I would contact the credit reference agency - advise that you believe there is an error and you would like to add a notice of correction.

[bones01]

Thanks I will do both above ,

Do you think I should include all points on letter to HSBC

1) balance should be £0 since 2011 and is incorrect

2) agreement has defects as noted by yourself and include a copy

3) I do not remember receiving a relevant default notice

 

So therefore request you correct the data set balance at £0 from 2011 leave as satisfied and remove default ?

 

I'm a bit confused as to when the default should have been applied and if it was done correctly , I've had a look online to see if there is a pathway but have confused my self , do you know of any threads that I could check that will allow me to add to the info above to put more pressure in to remove the default ?

 

Thanks x

[citizenB]

Default markers are usually placed on credit files up to 6 months after the default has taken place.

 

Until you have the full story mapped out, I don't think there is going to be any point in referring to flaws in agreements. For instance, you say you do not recall a means and needs sheet being completed. Was there not a copy in the Subject Access Request. You wouldn't receive a copy of the default notice in SAR because they are template letters - they would usually only note that one had been sent and when on the communication log/diary of events.

 

If this were me, I would simply be saying...

 

You believe there is inaccuracies in the reporting on your credit file. That they are still recording a balance unpaid, when in fact on DATE they accepted a f&f settlement from you.

 

Therefore they should be recording this as "settled/satisfied" as from DATE and the record going forward from that date should show a £0 balance.

 

You could mention that you have no recollection of receiving a default notice at any time, perhaps they could advise you when this was sent to you.

[bones01]

does this look reasonable ?

Dear **** HSBC

After recently obtaining a copy of my credit file from Experian, I was concerned to note that your company has placed a "Default" notice against a joint account in myself and my wife's name.

Furthermore neither I nor my wife has any recollection of ever receiving such a notice, and I therefore require you to substantiate this data at your earliest convenience.

1. You must supply me with a true copy of the alleged agreement you refer to. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.78 (1) Consumer Credit Act 1974 (s.77 (1) for fixed sum credit). Your obligation also extends to providing a statement of account. I enclose a £1 postal order in payment of the statutory fee.

2. You must supply me with a signed true and certified copy of the original default notice

3. Any deed of assignment if the debt was sold on

As stated in your previous correspondence the account was put into default on **May 2011, marked as “satisfied” with £0 balance to pay. According to the Credit reference agencies a balance of £****** is still evident until ****** 2013, which is incorrect as a balance of £0 should be present from ****2011? The full and final offer stipulated all adverse data be removed the account marked at “settled” and the balance £0 from the date of settlement **4/2011. The data logged with the credit reference agencies is incorrect and in clear breach of s.87 & s.88 of the Consumer Credit Act 1974.

I would therefore require that the above data requested is provided to me within the next 28 days, if you are unable to provide this data then I must insist that it is removed immediately from my files. I will also meanwhile be notifying the relevant governing bodies of my above findings to correct the data.

Yours faithfully

 

whilst trawling through letters the last response they sent me about the default was as follows :

Dear **

i write fro HSBC customer care team, in regard to the letter from the FOS sept 2013 ,( i duplicated the letter to them as they were involved origionally with getting the F&F at the start).

The letter expalined that you are concerrned that your credit file has been not updated accordingly. we also received a letter from you on *** which advised that account **** ( Current account) defaulted on the * may 2011should be marked as satisfied . i trust this clarifies matters for you . im rather confused as this is not the account thats defaulted but the main account thats attached to it , which shows as satisfied?? .

our records confirm that we received a letter dated 28 4/2009 to request closure of the above current account, this was undertaken accordinbgly and closed april 2009.

however, as you may be aware your managed loan ******* was closed on march 2010 and the outstanding balance of £9000 (odd) was passed to MCS in accordance with our debt collecting procedures.

Having liased with MCS , they have confirmed that the outstanding amount was settled with a discount on ** april 2011. I can confirm that the default was not showing as outstanding and therefore has been no identifiable error. as such ia m unable to uphold your complaint . however , i have ensured that it reads correctly as partially satisfied.

 

If any futher to discus call ***** ........ etc.

end of letter

my question before i send the letter to HSBC , is they said the account defaulted may 2011 however the cra show march 2011 is this something i should mention as to adding default before they say its defaulted or should i keep that in the bag , or is it irrelevant ?

also they say my current account defaulted 2010 nothing shows for this, would they be trying to pull a fast one or should i not mention this incase they add this too

thanks sorry for the waffle ! x

[citizenB]

I would reverse the order of the letter.

 

Give the history of the issue.. eg, On Date you made a full and final payment.

 

You have now discovered that the reporting to your credit file is inaccurate and you would like them to investigate this and correct.

 

Then ask for a copy of the agreement advising that you are including the Statutory fee.

 

You can then point out that you have never received a Default notice.

 

You can then request a copy of the Default notice.. however, they are not obliged to keep copies of these as they are template letters and will very likely only be able to provide you with the date it was populated and sent to you.

 

You should head your letter "Formal Complaint"

[bones01]

Thanks have revised and will send with the £1 fee and see what the reply is , am hoping that if involve the fos and maybe the oft , maybe i can put enough doubt that the default was incorrectly carried out and make them ?? the enforcability of the agreement , not to mention that the managed loan inc od charges and cc late payments that it might make them just remove

thanks for your help.

am goinbg to try it with BC too to remove my husbands as they accepted a full & final as well . worth a try ! x

[citizenB]

I agree, no harm in trying