Unfair late payments on credit report

shinyforce

I'm at my wit's end with my HSBC credit card. (This is quite long.) Last summer I ran out of money because I couldn't find a summer job and I've been a student for seven years (due to health issues. I've just graduated now, finally!). I'd borrowed money from my dad to pay my rent, but I had two credit card repayments to make before my next student loan would come in, and I was loathe to ask my dad for even more money because he couldn't really afford it. Almost a full month before the next payment was due, I phoned HSBC, explained my situation, and asked what I could do about it so that I could sort it out in plenty of time. The person I spoke to said that a short-term repayment plan of £10 a month for three months would be fine, and that to organise it they would cancel my direct debit auto-payment, and that I should wait until I got a phone call saying I was overdue in order to arrange it.

Foolishly, I took their advice. Phone call came, they knew nothing about the repayment plan, and I had to get through to a manager in order to sort it out. The three-month plan was formally agreed, and I paid it on time every time, and then promptly paid the arrears once my student loan came in. I'd thought this was the end of it, having explained that it was a one-off circumstance: I'd be graduating in February and would then either be working or on JSA so I'd always be able to make payments. When I paid the arrears, I was told that I could have a new card if I put the request in writing. I did this, and it took two months of back-and-forth before they told me that I couldn't have a new card after all, and to come back in six months.

Never once did they explain to me that this would be marked down as late on my credit report, nor that my account would be closed completely so that I could no longer use my card. They seemed so friendly and helpful! If I'd known what a hassle it would be, I'd've gone back to my dad and asked for more help instead of trying to be at least a little independent. I made an official complaint about the misinformation, but got brushed off - they didn't address the bad advice they'd given me, and merely said that giving me a new card after repayment problems would be irresponsible. At the time of receiving the letter I was about to start my final university exams, so I just put it to one side because I'd already spent hours on the phone and didn't have time for the stress. Now that I've graduated, however, I've gone to look at everything again, and have looked at my credit report for the first time. I have a 'poor' score, seemingly because of the missed payments that happened because they told me to miss one, and I don't feel that this is fair. I have never once missed a payment before in seven years of having the card, and if they hadn't misrepresented how easy it would be to implement a payment plan I would have borrowed the money from my dad or a friend and none of this would have happened.

I feel like I want to contest the late payments on my report, but is this actually worth doing? HSBC has been completely unresponsive thus far, and I don't want to go through more tears and phone calls and letters if it's just something I should take on the chin. I've since paid off half of my card's balance, and will be moving all my accounts to another bank once my student overdraft is paid off, so I won't be giving them any more of my custom, but I just feel really unhappy about the whole thing. I'm not even so bothered about not having the credit card at the moment, it's the damage to my credit history that's really concerning me. Any help or advice would be really appreciated, thank you!

ceejaydee23

HSBC were fine with me, although like yourself they claimed not to have known about my financial problems id called them about over a month before, I told them to actually go have a look at my account records properly, low and behold their attitude changed significantly (for the better) My 3 months of lower payments were accepted, and i even received a letter to say cut up and return card, account and interest frozen. They informed me of the default notices and how it would impact on my credit file. At the end of the day if your in financial dodo anyway it doesnt matter about your credit file. (why would you want more credit yet anyway?) Once debts are paid properly, then things get settled the score improves (gradually)

Id seriously already think of setting up new bank accounts anyway, just shift over the money thats paying off the student loan with that bank (and the credit card)! as any money thats going into that bank with the debts they could offset against the debt anyway!

Don't forget the AMOUNT of credit/debt you have counts towards your score too, not just defaults, The fact you have a student loan will in itself affect it! ( I believe)

NEVER again will i spend willy nilly on a credit card, even the holidays we had put on ours, we will save for 1st so we can pay the balance off straight away!

Clarie_2

Hi, I don't know how comforting this is, but defaults (which you don't have, but I think it includes late payments) go after 6 years. Which seems like forever but if you just keep on, being responsible with your cards and building up good credit, then you'll most likely be there before you have saved enough for a mortgage deposit anyway!
I've no idea about contesting - hopefully someone who knows more will be along.

Clarie