Defaulted HSBC Credit Card 5 Years Ago!

heather12345

Hi

I defaulted on a credit card that i had with HSBC 5 years ago the Balance was £ 5,601

14/08/2005. I recently looked at my credit report on the Equifax website and the card came up with a balance of £ 4,661. I've just received a letter today from HSBC saying they've taken £500 from my account as per our right of set off and that if i have any queries to ring them, i have my current account with HSBC. When i took the card out al those years ago i'd just turned 18 and was sold payment protection which was added to my balance for my months. Can HSBC just take £500 from my account randomly? How long do you have to have defaulted before it gets written off?

I would be grateful of any advice i'm not sure what to do?????

Heather :-)

cifpower

Yes they can take money out of your account if you have defaulted on a credit agreement that is held with the same bank.

A default stays on your file for 6 years from date of issue whether settled or not. They could, of course, obtain a CCJ against you if the debt remains unpaid.

PNPSUKNET

one issue which Im not sure also of, now that they have offset the £500 this may or maynot restart the clock as to chassing of the debt.

cifpower

PNPSUKNET wrote: »

one issue which Im not sure also of, now that they have offset the £500 this may or maynot restart the clock as to chassing of the debt.

The default will still expire 6 years after being issued. HSBC taking £500 out of the bank account is akin to the OP making a payment of £500. Only 1 default can be issued per debt.

hax_2

I think that the OP is talking about the Limitation Act 1980, where a debt becomes unenforceable if the last cause of action accrued more than 6 years ago.

getinmyselfoutadebt

i'd change bank accounts as hsbc will and have the right to do this again

PNPSUKNET

cifpower wrote: »

The default will still expire 6 years after being issued. HSBC taking £500 out of the bank account is akin to the OP making a payment of £500. Only 1 default can be issued per debt.

Hi I didnt mention the default, as per above I was ref to the stat bar.

heather12345

Thank you for the replys :-)

That's what i wanted to know really if the issue date of the card was 13/08/2004
and i defaulted on the 14/08/2005 when will the 6 year period start from? Also what is the process that you go through to get the debt written off after 6 years? Will it be removed from my credit report?

I've thought about just paying it off will i be able to ask them to take less money if i pay the card off in one cash payment or will i have to pay the full £4161?

Thank you all again for the replys

Heather








The card comes up as this on my credit file:

StatusCredit LimitDate UpdatedStart DateDate Last DelinquentDate SatisfiedDefault DateDefault / Delinquent Balance Defaulted £ 013/04/200813/08/200408/05 14/08/2005 £ 5,601



Account TypeTermsStart BalanceCurrent BalanceCredit Card 0 @ £ 0 (Monthly) £ 0 £ 4,661

LeeSouthEast

You can ask if they will accept a lower amount as a "Full & Final", but do ensure they update the credit file as "Settled" rather than just "Partial Settlement" (they don't have to, but it looks better).

heather12345

issue date of the card was 13/08/2004
and i defaulted on the 14/08/2005 when will the 6 year period start from? Also what is the process that you go through to get the debt written off after 6 years?

izools

The six year period starts from the date on which you defaulted (14.08.05).
The default will disappear from your credit file six years after this date whether settled or not.
Have you spoken to HSBC about this debt atall in the last five years?

There is no process to follow for the default to be removed, it is automatic. This doesn't mean you don't have to pay it however.

Obligation to pay is handled under the Limitation Act 1980 whereby six years after the last contact between creditor and debtor the debt becomes unenforceable at law.