Mortgage and default help needed!

roadpig

Hello Everyone- I am in need of some advice if at all possible!

Heres my story (will try keep it relevant and concise!)

I ran into some financial difficulty some years ago (2007) which resulted in me falling behind with the repayments of a loan with HSBC. Eventually, I managed to speak with someone helpful (or so i thought) who promised to send me some forms out to fill in in the hope of re-structuring the loan, basically lowering the payments. Long story short, the forms never materialised. A few weeks later, the local atm ate (yes ate!) my hsbc current account cash card. I immediately rang HSBC who told me my bank account had been terminated due to falling into arrears- I was advised to write to the credit department which i duly did. Luckily, I had another current account with none other than First direct which was and still is unaffected by the HSBC fiasco. I was £900+ into the HSBC overdraft facility and had a loan of around £5k attached to the same account. Eventually I was contacted by Metropolitan Collection agency who informed me that they now controlled the debt and all correspondance was to be made to them. I arranged to pay the debt at £110 a month and continue to do so.

Fast forward to February 2010.

I recently obtained my credit files as my partner and I are looking to move house due to growing family (second child due next month!). On my file was a default notice placed by HSBC which related to the above action taken in 2007. I am 99.9% certain that I did not receive a default notice. I immediately google bashed defaults and mortgages and came over all ill. Luckily I found MSE and in particular the Enforceability Templates thread.

I immediately sent the templated letter to Metropolitan requesting CCA and default notice- I sent this on the 6th March. The enclosed cheque of £1 was cashed on the 15th of March but I still hadn't heard or received anything from Metropolitan by the 12th April. I rang Metropolitan to see what was going on and they told me..............they had passed my account on to DG solicitors (another subsidiary of HSBC):mad:.

Please stay with me guys!:j

DG had been given the account due to me not paying the debt in full (????) but were happy for me to continue my £110 monthly payment. I have since (today) sent the CCA and default notice template to DG by recorded delivery (I got the name of a guy who 'liaises with HSBC).

So to the nitty gritty. Here are my initial questions.

1) Was the transfer to DG from metropolitan a possible delaying tactic?

2) The account to which I refer was a student one- the loan was pretty easy to attain, i.e. I provided no proof of income etc. Is this legal?

3) If they cant prove they sent me a default notice or the CCA is dodgy- what timescale am I realistically looking at to remove the default.

4) We are after a 125K mortgage, my partner alone can borrow 95k and we have a 13k deposit. If I cant get on the mortgage are there any other ways round this given the shortfall of borrowings is only 17k?


I apologise in advance if i have posted in the wrong place. I hope I haven’t droned on too long and am very very appreciative of any advice/help.

Thanks guys

Tixy

roadpig wrote: »

So to the nitty gritty. Here are my initial questions.

1) Was the transfer to DG from metropolitan a possible delaying tactic? yes

2) The account to which I refer was a student one- the loan was pretty easy to attain, i.e. I provided no proof of income etc. Is this legal? yes

3) If they cant prove they sent me a default notice or the CCA is dodgy- what timescale am I realistically looking at to remove the default. hard to say, probably a bit of to-ing and fro-ing with letters that niddy will help you with.

4) We are after a 125K mortgage, my partner alone can borrow 95k and we have a 13k deposit. If I cant get on the mortgage are there any other ways round this given the shortfall of borrowings is only 17k? can't think of any.

I think you have posted in the right place. If they fail to supply the CCA & default then follow the instruction on niddy's (never-in-doubt's) flowcharts. If they get difficult with proving the defaul notice niddy will help and will specifically write letters for your situation if needs be. Getting a default notice removed is never easy or quick, but there have been successes. Good luck with it all.

Oh just thought of one other thing that may be relevant (or you may already understand) - does the default relate to the loan or the overdraft? only overdrafts don't have a CCA, but the loan will have (or should have if they can find it )

DarkConvict

Defaults cannot be removed due to no CCA been present, this was set in the high court case McGuffick v RBS http://www.judiciary.gov.uk/docs/judgments_guidance/mcguffick-v-rbs.pdf

You have to use the argument no notice was sent and get proof that it was never received, proving nothing was sent/received is the difficult part. You need to SAR them and see if there is a default or openly ask them. Problem is defaults are typed on a computer... dates can be easily changed so last years default could be simply written and printed tomorrow

roadpig

There is only one deafult on my credit file so i presume that it applies to the loan. Do current accounts have CCA's? I had this account from a very young age (when it was midlands!).

That ruling makes no sense. If a loan isn't lawful how can the default notice be?

A guy I spoke to at DG told me the date which the default was sent, as I say I'm 99.9% certain that this didn't happen hence me persuing it.

Really frustrating.

So If the CCA for the loan comes back and is riddled with mistakes making it unenforcable..............?

Sorry I'm new to all these terms etc.

Thanks for helping guys

DarkConvict

Current accounts are services, so have service agreements. There is no CCA to challenge on current accounts. Service agreements are part of contractual law so given the right terms in the agreement they can report to your credit file. i.e. Like mobile phones they can place defaults for non payment.

So If the CCA for the loan comes back and is riddled with mistakes making it unenforcable..............?

It just means they cannot get a CCJ in court, that is all. CCA has been in several high court cases now so what it applies to is quiet clear. Only credit pre April 2007 applies to CCA 1974 aswell, after April 2007 it is CCA 2006 which has clauses to allow a judge to enforce it regardless.

roadpig

It was pre Apr07 loan.

Sounds like Ill have to play the waiting game then and wait for the CCA/default notice to arrive (hopefully not)!

Will let you know how I go.

Cheers

roadpig

roadpig wrote: »

Hello Everyone- I am in need of some advice if at all possible!


DG had been given the account due to me not paying the debt in full (????) but were happy for me to continue my £110 monthly payment. I have since (today) sent the CCA and default notice template to DG by recorded delivery (I got the name of a guy who 'liaises with HSBC).

Hello!

Just had the following letter delivered from DG Dated the 22nd. My second letter was sent first class recorded on the 20th requesting CCA and default notice after originally contacting Metropolitan Collection services!

"Thankyou for your recent letter requesting copy documentation relating to the above account.

Please accept our apologies for the delay in responding.

We are not yet in a position to respond to your request, once we are in a position to do so the relevant documentation will be issued to you."


Good, Bad, Indifferent?

Roadpig

Tixy

Hi

Fairly normal I think - at least they have acknowledged receipt of the letter! Even that can be hard with some DCAs

DarkConvict

Agreed its the normal response of, we got your letter, but we personally do not have the paperwork you requested, as such we will contact the original creditor to acquire it and forward it on.

roadpig

Today I received the CCA as requested. It was sent by Metropolitan collection services as opposed to DG solicitors which I find quite odd? (see above).

Had a quick check over using NID's checker and it appears to be enforcable:(. However not sure on the 'does the agreement link to the prescribed terms and the terms and conditions' bit? can anyone offer clairity on this please? does this simply mean does the agreement mention the terms and conditions etc.

Also, the lenders signature is present but is somewhat disguised by a HSBC stamp- would that have any bearing or is that just me clutching at straws?ha

No sign of the default notice though. I think the crafty beggers have tried to bamboozle me with an obscure print out of what I think is an itemised log of the loan payments made with a red heading formal demand and subsequent payments.

What now? do a re-request the default notice?

Regretting being so blase about this now but guess thats just natural. I am totally fine about paying the loan off afterall it is my obligation, I just want this default taking off!!

Roadpig:)

Tixy

I would ask niddys advice, if you can scan the agreement in (blank out the personal info) and pm it to him he'll look for you.