Nalanji v HSBC Credit Card - Default Notice Removal

[nalanji007]

Hi.

Please can somebody give me some help or advice

I have been ready the Consumer Action Group Forum for some months now with great interest. I have say that this site is overwhelming in good advice and knowledge from people who are knowledgeable and has experienced the problems associated when a back gives you a Default Notice of you credit history file.

Can somebody on this forum please please help or give me some advice as I am trying to remove my Default Notice in order to get a decent mortgage without paying ludicrous interest which they will charge if the Default Notice remains on my file.

I originally checked my credit history from Equifax in September 06 and found that HSBC Credit Card services had place a ‘Default Notice’ on my credit history in December 2003. I remember at the time I received a call from one of HSBC’s offshore call centres informing me I had been defaulted for not paying my credit card and they were informing the Credit Reference Agencies that I had been served a ‘Default Notice’. The friendly person from the off shore call centre then advised me to set up a direct debit which I did to pay off the credit card. The direct debit was set up to pay £200 per month until the account was paid off. I eventually paid off the account in December 2005 and then closed the account straight away.

At the time I did NOT receive any written Default Notice from HSBC hence it was a shock when I received a call to inform me I now have a Default Notice on my credit file.

Without boring you of all the personal details at the time I was going through marital problems and so neglected to pay my credit card. As things got worse personally I sort of stuck my head in the sand and hoped it would go away. Obviously it didn’t so now I am trying to clear my credit file. Thankfully my marriage remains intact and we were hoping to buy a house until I discovered the problems with my credit history.

But as everybody knows on this forum if there is a default notice on your credit file then getting any sort of loan, credit cards or a decent mortgage is virtually impossible unless you are happy to pay extortionate interest rates.

So after obtaining my credit file from Equifax the following is what it said in September 2006.

I had a ‘Default’ marker placed on my HSBC credit record in December 2003 and NO ‘satisfied/settled’ marker, just a single ‘D’ marker and the rest of the payment history was blank even though I had been paying it off. The current balance was stated as £692 owing, status as ‘Defaulted’, date updated as ‘26/06/2005’, last delinquent date as ‘01/04’, date satisfied as ‘no entry- blank’ and the default date as ‘29/01/04’.

So after obtaining my credit file from Equifax I sent an initial letter as described in the templates.

Saying

HSBC Bank plc

Card Services

365 Chartwell Square

Southend-on-Sea

Essex

SS99 2U

Date: 18th September 2006

Dear Sir or Madam

HSBC Credit Card account number – xxxx xxxx xxxx xxxx

After recently obtaining a copy of my credit file from Equifax I was concerned to note that your company has placed a "Default" notice in December 2003 against a HSBC Gold Credit Card account in my name.

It was also noticed on the credit file from Equifax that the current balance is £692 even though I closed the account in December 2005 when the balance on the account was zero.

Further to this I don’t have 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.

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

I would request that this data is provided to myself within the next 28 days, if you are unable to provide this data then I must insist that it is removed from my files as unsubstantiated.

I received a letter back from HSBC to say the following.

Dear Mr xxxxxxx

Thank you for your recent contact.

Please find enclosed the copy statement of account.

If you have any further questions then please contact Customer Services on 08457 404 404

Yours sincerely

Xxxxxxx xxxxxxx

Manager Customer Services.

Attached to the letter were 5 photocopied statements of the time when HSBC default my account. Looking at the letter it looks like somebody had just sent me a standard fob-off letter they probably send out every day.

Following the template again I proceeded to send out another letter basically requesting the same thing.

Mr xxxxxxx xxxxxxxx

Manager, Customer Services

HSBC Bank plc

Card Services

365 Chartwell Square

Southend-on-Sea

Essex

SS99 2UU

Ref Number: xxxxxx xxxxxxxxx xxxxxxxxxx xx

HSBC Credit Card account number – xxxx xxxx xxxx xxxx

Date: 30th October 2006

Dear Mr xxxxxxxx

Thank you very much for your letter dated 4th October 2006.

You have however sent me copies of my previous statements which I already have.

It is the ‘Default’ notice that I am very concerned about because I have no recollection of ever receiving such a notice.

Also the credit agency report from Equifax states the current balance is £692 even though I closed the account in December 2005 when the balance on the account was zero.

The three questions in the original letter dated 18th September 2006 specifically relate to these two points and request you to substantiate this information. Could you therefore answer in full the questions contained in the 18th September 2006 letter of which I enclose a copy.

It is your duty to comply with my requests under the law.

Yours sincerely

Xxxx xx x x xx xxx

I waited and waited and didn't received anything so eventually sent out another letter to HSBC

Mr xxxxxxx xxxxxxxx

Manager, Customer Services

HSBC Bank plc

Card Services

365 Chartwell Square

Southend-on-Sea

Essex

SS99 2UU

Ref Number: xxxxxx xxxxxxxxx xxxxxxxxxx xx

HSBC Credit Card account number – xxxx xxxx xxxx xxxx

Date: 9th December 2006

Dear Mr xxxxxxxxx

I wrote to you on the 18th September 2006 and the 30th October 2006 asking for some relevant information. I enclose copies of the two letters, the first letter of which was sent via recorded delivery.

You wrote back to me on the 4th October 2006 without answering any of the 3 questions put to you in the original letter.

As 28 days has now passed from the date of the 2nd letter you are now in breach of your duties under Section 78 of the Consumer Credit Act. If you do not answer my original questions and reply within 7 days I will have no choice but to escalate the matter to the relevant authorities including the Banking Ombudsman, Office of Fair Trading and the Information Commissioner's Office.

Yours sincerely

Xxxxxx xxxxxx

On the 15th December I received the following letter.

Dear Mr xxxxxxx

Ref: xxxxxxxxxxxxx

I write with reference to your letter dated 9 December 2006 and the documentation you have requested in respect of your above account. I am of course sorry that you were dissatisfied with our previous response in relation to this matter. Having fully investigated the issues raised I can now respond as follows.

I acknowledge your request for a copy of the original credit card agreement in relation to your above account. Our records confirm we have previously provided you with a copy of this, together with the Terms of Conditions in our previous letter dated 4 October 2006. However, for your records I have enclosed the documentation again. Obviously in this instance we have fully complied with Section 78 of the Consumer Credit Act.

I also acknowledge your request for a copy of the original Default Notice date 30 December 2003. The Default notice is an automated process and it is not therefore possible to provide an actual copy of the letter sent to you. I am however, able to provide you an example of the letter and the wording which would have been used.

A court would be satisfied if we showed that our systems produce there letters automatically and that it would be sent to the address held for the customer at the time of issue.

We will of course, also, be more than happy to confirm any of the above to the Financial Ombudsman Service or the Office of Fair Trading.

To confirm, the bank have correctly registered details of your account with the Credit Reference Agencies after you failed to maintain payments in accordance with the statements. The registration will remain on the file 6 years from the date of the default, namely December 2006.

I acknowledge you did repay the account in full in December 2005 and as a result, your account was subsequently marked as satisfied with the Credit Reference Agencies.

However, please bear in mind, despite the above, the registration will remain on file until the statutory six year period from the date of the default has elapsed, which in this case will be December 2009.

I trust my comments have clarified matters for you. However, I am obliged to advise you that complaints we cannot resolve can ultimately be referred to the Financial Ombudsman Service. If we do not hear from you ………. We will consider this matter closed.

Yours sincerely

Xxxxxxxxx xxxxxxx

Customer Relations.

With the letter I received a photocopy of my original signed credit card application form, a photocopy of the credit Card Agreement Terms and a template of the Default Notice letter they used which I never originally received. But NO origianal Default Notice they said they sent to me.

Firstly can they actually legally say the above as they never sent me any Credit Card Agreement in the first letter they sent even though there records confirm they sent it. All I received were 5 statements.

They are saying that the Default Notice procedure is an automated process so they cannot send me a copy. Is this legally binding? Isn’t it my legal right to request the original letter or are they trying to hide something. This is in fact the document I originally requested and they cannot provide it because they are saying the process is automated. Also would a court be satisfied with such an excuse as surely statements are and automated process but they managed to reproduce them and send me a photocopy?

Also I ask a question they say ‘the registration will remain on file until the statutory six year period from the date of the default has elapsed’, but this six year period is NOT a law, but just a period set by the financial institutions.

Apart from this letter in November 2006 I checked my credit report again from Equifax but found some surprising discrepancies.

So this time it said the following for the HSBC Credit Card record

I had a ‘Default’ marker placed on my HSBC credit record in November 2003 and a ‘S’ marker in December 2006, the rest of the payment history was blank even though I had been paying it off. The current balance was stated as £0 owing, status as ‘Settled’, date updated as ‘05/12/2005’, last delinquent date as ‘12/03’, date satisfied as ‘29/01/2004’ and the default date as ‘blank – no entry’.

So from sending out my first letter in September (after I obtained my credit report) to getting another credit report the HSBC records had obviously been changed.

From -

A ‘Default’ marker placed on my HSBC credit record in December 2003 and NO ‘satisfied/settled’ marker, just a single ‘D’ marker and the rest of the payment history was blank even though I had been paying it off. The current balance was stated as £692 owing, status as ‘Defaulted’, date updated as ‘26/06/2005’, last delinquent date as ‘01/04’, date satisfied as ‘no entry- blank’ and the default date as ‘29/01/04’.

To -

A ‘Default’ marker placed on my HSBC credit record in November 2003 and a ‘S’ marker in December 2006, the rest of the payment history was blank even though I had been paying it off. The current balance was stated as £0 owing, status as ‘Settled’, date updated as ‘05/12/2005’, last delinquent date as ‘12/03’, date satisfied as ‘29/01/2004’ and the default date as ‘blank – no entry’.

So who can legally do this to somebody’s credit file after the account has been closed. My guess is HSBC to try and clear up some of there mistakes.

So can somebody please please help or give me some advice or guidance as I don’y totally understand how I legally stand when it comes to the banks.

I am trying to write a letter back to the bank to basically explain the discrepancies with the HSBC records in my credit file before and after I sent the original letter to them. Can I legally inform them so they will ultimately remove the default. I know they are trying to cover this up from the wording in the last letter I received but I don’t quite know how to attack this to ultimately get the default remove. I has copies of both of the credit reports so I have to go to court and prove this then I will. But maybe if I send them copies of the reports they may back down. Also their wording in the last letter to me is very threatening and for them to use ‘statutory’ for the six year period is totally ridiculous and legally wrong as it’s not statutory at all.

I would very much appreciate it if somebody can read this and give me some advice or help as I have been trying to think for a long time of a response to the banks letter but not sure how I can attack this to ultimately get the default removed.

[KHMcBey]

Hi -

 

Have you claimed back your charges for this account? In the SAR template it contains a paragraph which informs them that you will be seeking a removal of any defaults as they directly related to penalties imposed by the bank. If the account went into default because of charges, this is another route to consider. I'm not sure about the legalities of the situation you outlined above, hopefully some of the incredibly knowledgable people on this forum will be able to help you! It could be worth you PMing Laiste, she's really good and is herself in the middle of a long drawn out battle with some DCAs.

[sabotchway]

Has anyone has their account closed by the bank for claiming bank charges?