Hsbc dormant account

UKNOV

Hi, i have a current account with ovedraft wth HSBC. I haven used the account for a couple of months, but have kept within the overdraft limit. Anyway HSBC have decided to place a marker with the reference agencies showing i am late with a payment. Have contacted them and they say as i have not paid any money into this acount for more than 35 days they are placing this with the agencies. This seems mad to me as i am below my overdraft limit.

Advice please.

bingy_burge

I think u will find that a current unlike a credit card is suppose to have cash in on regular basis. My partner has a current account with halifax with an overdraft and I pay £20 quid a month in to keep them happy and before just are child b.

If it has an overdraft they want to see an income to repay it regardless of whether you are in debt.

UKNOV

I have read the small print of the terms and conditions and it makes no mention of an account becomming dormant if no payment are made for 35 days. As i said to them when i spoke last week, had I been aware of this, i would have simply set up a standing order of £10 a month just to keep them happy. As far as i am aware it is NOT like a loan or a credit card as there is no fixed term or amount that should be repaid, and that providing i am below my limit then all should be ok.

Am taking this to the Financial Ombudsman unless they remove the derogatory information as i think its naughty and gives a false impression to anyone who looks at my credit file. Had they written to me beforehand and asked me to make a payment i would gladly have done so.

YorkshireBoy

Are you sure they haven't reduced/withdrawn your overdraft facilities due to the lack of account throughput?

Also, the FOS won't entertain a complaint until you've exhausted the HSBC internal complaints procedure first. I assume you've made a formal complaint to them?

UKNOV

Nope overdraft still there, and yes still below my limit. I have asked HSBC for their "final letter" so can then take this to the FOS. I have explained to HSBC that if another lender looks at my credit file they will get the impression i am late in a payment with HSBC which is not the case.

jonesMUFCforever

You no longer need a letter of deadlock to go to FOS.
I do think that the bank is factually accurate with what they have reported and as such any complaint by you will be a waste of your and their time.

noah271007

It is not factually accurate mate! How can he get a one payment marker even though he is within the AGREED overdraft limit??

Late payment marker should indicate if its late, or overlimit.

withnell

I know that my Halifax overdraft requires me to make a regular salary or other credit to the account

UKNOV

I believe they are factually incorrect as as per equifax and experian, having a one marker is as they say showing you are one month or more late with a payment. I am neither of these as my overdraft does not have a fixed or any amount to pay each month, and i repeat i am below the limit. The wallies actually said to me on the phone last week that had a paid in 1p in each of the last two months the would not have given such info to the credit info agencies. Just to demonstrate how silly this is, my overdraft facility is £20k (reduced from £30k six months ago at my request) and my balance is circa £15k. The definition of a dormant account is someone whu they are unable to reach over a long period of time. However last week they said they make an account dormant after 35 days of not making any deposits when someone is in overdraft. There terms and conditions make no mention of this.

UKNOV

jonesMUFCforever wrote: »

You no longer need a letter of deadlock to go to FOS.
I do think that the bank is factually accurate with what they have reported and as such any complaint by you will be a waste of your and their time.

How can they be factually accurate?

PARIS_5000

I agree that they are wrong to put late payments on your credit file just because you have not used the account however I think that should have paid some money into your account because you do have a overdraft.