HSBC Default Impossible to remove due to closed account

03029174

Hi everyone

This is my first post and i have spent all day reading the forums trying to gain advice on my specific problem. Im 29 and doing pretty well now. Unfortunately i had a Mortgage application declined this morning due to a 2nd credit check at the application stage.

I had a student account with HSBC back in 2006 when i left Uni. I had a direct debit setup paying a small amount each month as agreed with the bank. I moved to House (Just around the corner) and didn’t update my address details with the bank. I used to pop round to pick up my post but it looks like an old flatmate put my mail back in the postbox with "not at this address" written on it so it got returned to HSBC. (Which they confirm)

For some reason they closed the account with a £700 balance at the end of 2009 and passed the case onto Metropolitan collection agency who contacted me at my new address, i paid the full amount the next day and didn’t worry about it too much.

I did a credit check this morning and the default is marked against that address and is the only problem on my credit file.

Halifax have been quite good and have said if i can get a letter from HSBC explaining what happened and remove the default they will complete the mortgage.

I assume this is unlikely and really wish id managed the account better, i just assumed because the direct debit continued to be taken from my account everything was ok, i honestly thought the account was still registered at my parents address so if anything wasn’t right i would have heard about it. Unfortunately the first time i heard about it, it was too late.

Does anyone have any advice on my options, i have visited my local branch and they say they cant help because my account is closed they can't do anything, i then called the Service Quality Team and they said the cant access any details and the only people who can help are the staff at the local branch so im getting nowhere really.

Thank you so much if you have taken the time to read this post

Pete

Leon_W

Hi Pete

Realistically I don't think you'll get this removed as (from what I read into your post) it is factually correct. You defaulted. It was your fault that it was registered by not informing HSBC of your new address. HSBC are only reporting to the credit reference agencies what actually happened and have a duty to do so accurately. Therefore reporting that the account did not default they could be leaving themselves wide open.

I presume that the default is marked as satisfied now ?

Sorry if that's not what you wanted to hear but in my experience very few defaults and other black marks on credit files get reversed. Excuses like "lost in the post" or "wasn't aware" don't get anyware.

All the best.

03029174

Hi Leon

Thanks for the reply, i thought that was probably the case. I was hoping i might have half a chance because i was consistently paying money into the account. I estimate this was the case for 3 years and it was still happening up until the account closure. It looks like my old landlord got annoyed with my HSBC mail and wrote to HSBC saying i was no longer at the property. I guess that is why they closed the account because they couldnt contact me even though money was still going into the account.

Do you think i have grounds to complain if this is the reason they closed the account? I hadn't missed any payments and it was just a genuine accident because i thought the account was registered to my parents address.

They might not have sent the Default letters etc which they are required to do legally? Do you think i should request a copy of all the letters they sent me and see where i stand.

I understand why they did it but i need to try everything to get this mortgage. It is a shared equity and Halifax are my only shot

Pete

LilacPixie

what happend to the money you wer transfering to hsbc monthly after default?

03029174

Hi LilacPixie

As soon as i paid the collection agency i logged onto my online Natwest account and cancelled the direct debit to HSBC

Thanks

Pete

DVardysShadow

03029174 wrote: »

Hi LilacPixie

As soon as i paid the collection agency i logged onto my online Natwest account and cancelled the direct debit to HSBC

Thanks

Pete

You've missed the point of Lilac Pixie's question. A default was registered against you BEFORE you cleared the account. What happened to your payments?

As I see it [and presumably LP too], if you were paying as agreed, then you could argue that in fact there was no default.

03029174

Im very sorry, i still don't completely understand. Up until the default the payments were going in as usual and were chipping away at the balance. It was setup by direct debit in 2006 and never missed a payment. Then in October last year they added the default and passed the case to the collection firm. I am going to book an appointment with HSBC tomorrow to try and discuss.

luckyfool

Presumably as you had moved house/gone away without telling them when they found out they closed the account and withdrew any overdraft facility, despite small payments continuing to be made by direct debit/standing order. They will then have passed on the outstanding amount to a debt collection/trace agency to try to track you down and recover the debt. Hence the default notice on your credit file.

Voyager2002

Presumably you can contact the DCA and get them to confirm that the full amount outstanding was paid as soon as they contacted you. That should go a long way towards satisfying Halifax.

LilacPixie

luckyfool wrote: »

Presumably as you had moved house/gone away without telling them when they found out they closed the account and withdrew any overdraft facility, despite small payments continuing to be made by direct debit/standing order. They will then have passed on the outstanding amount to a debt collection/trace agency to try to track you down and recover the debt. Hence the default notice on your credit file.

I think this is probably the reasonings behind the default however if the company knows you are no longer receiving mail then how could they sucessfully serve a default notice?? If moving address was the reason for the abamk to withdraw credit facilities then it would be aware that any default notice served would not of reached you.