Bank filing default notice - legality?

digitalsystemsdesign

Hi Guys

This might be a long one, but I am sure it will be something to get your teeth into

Was a long time customer of a major bank HxxC with both personal and business accounts.

A few years ago I had an issue with a supplier (business account) and they filed a winding up petition with the CC and notified it in the London Evening Gazette which froze all of the company accounts etc. Was a disputed debt, (and the incorrect way of going around it) so it went to court and as I was in the right - it was dismissed and I was awarded all costs.

Easy part out of the way - well, as a result of this, my bank - in the current climate or climate of the time, got a little arsey, and as there were problems with the business account, they cancelled my overdraft (only 2k) and didn't inform me. I found out a few days later when a payment in Sainsburys for about £10 was declined, so I was able to transfer all of my personal business to Barxxxxs, with whom I had opened up a new account... just in case.... Anyway - HxxC applied some £160 of charges to my account for direct debit payments that had not been met as they had removed the overdraft to zero and I disputed these charges. I could not get anybody to reimburse the fees, so I subsequently paid off all but £1k of the overdraft and left the £1k +160 there to ensure that the bank would not get paid until they cancelled the charges that I incurred, that were placed on my account without my being able to do anything about it.

Well... after a few months of threatening calls etc, I heard nothing for about a year or more.... then the bank started to call about the money (almost like trying to claw money in during the credit crunch). I explained the situation and stated again, that I was not willing to pay the £160 in fees as it was imposed on me without any opportunity to transfer the DDs to my other bank account with Barcxxxs. After about 3 or 4 calls, one of the guys agreed to cancel the charges if I paid the difference - result....

Well... not quite. I transferred some funds from my other account overseas into my Bxxxxxxs UK account. On going to HxxC to sort the payment out, I was informed that the account had been closed (oh one fo the terms of my agreeing to pay HxxC was that the account would not be sent either for collection, or filed as a debt with a credit reporting agency) - I had paid some money into the account that day (as i had done throughout - I did not dispute the 1k in the overdraft or any interest that it would incur - but I did dispute the charges - so I continued to pay the interest on the 1k at regular intervals)

On hearing that the accound had been closed - I then sought advice as to whether to attempt to pay into the account in case it had been referred to a credit agency - at this time i was receiving large numbers of calls from the collection agency which is a sub-division of HxxC.

After a few weeks, I again went to the bank (HxxC) where I checked the outstanding balance, less the £160 in charges (which was withdrawn from Barcxxxxs) to be paid into the account to settle the account less the agreed fees. At the bank, the clerk informed me that the account was closed and that the amount had been written off - she advised me not to pay into the account without confirming it with the main bank. I agreed and did not deposit.

There were then multiple calls from the Bank's collection agency - who I passed on all of the details above (and in writing) and informed them that I did not want to deal with them in the circumstances, but only with HxxC sos that this could be sorted - Again they continued to call and were told the same thing. Eventually this was passed to the bank's solicitors (who I told the same thing) and heard nothing more. Despite asking to talk to someone from the main bank, and informing both of their agencies of my request to clarify the matter with HxxC banking alone - I was not contacted by the main bank - whom I had offered to settle the amount with immediately.

Anyway - last week I went to get a new phone and was declined.

My credit score was originally 920 or so and then I went onto the Experian site to see why the credit reference agency had declined me - oh now I find that HxxC has filed a default notice for £1050 for the account and my score is now 740 with a recent default notice against me

I know that this is long and winded - but is there anything I can do - I would love to take the bank to small claims court or take some sort of action against them, but I am not sure if I have a 'legal' leg to stand on with this - surely they can't do this - seems like bullying and big brother tactics

Cheers in advance

Jeff F

chambta

I sympathise with the situation but honestly I think you'll struggle to get very far with this one.

jfke

HSBC as an institution hold lots of deposits and very few loans, apparently, this isn't the first example I've heard of them writing off a 1k-2k outstanding balance without even going through much of an attempt to get it back.

I would say you're on a hiding to nothing trying to get the default removed as my friend was when he was disputing his credit card balance. He thought he was boxing clever witholding payment from HSBC until they waived fees he thought to be unfair. He had a 1.8k outstanding balance of which £200 was disputed. His final contact with them was an angry call to the call centre saying he would not settle the balance until the fees were removed, the call was terminated without satisfaction. Move forward some months later and cue default notice on his credit report with the amount written off by HSBC. It seems they're not even bothered with selling these debts on to collection agencies like most UK banks love to do.

He made a few more angry phone calls to HSBC and they rather flatly, and smugly, told him he was no longer a customer of theirs and there was nothing they could do to help him. They also told him they wouldn't accept him as a customer in the future due to the way he conducted his business with them...ouch!