Help needed with Default Notice

beingpositive

Hi, doing own dmp. We were banking with hsbc with whom we had a loan. We opened new account with nationwide. Cancelled direct debit with old account to hsbc for loan. HSBC would not close our bank account. Jan 12 we wrote with all the figures and on 25th Jan I telephoned hsbc and they said they accept reduced figure. I Set up standing order from our new bank for which payments have been going through. Now received a letter from hsbc saying they tried to take the money from our old account for payment of the loan but (funnily enough) there was no money in there and, therefore, issued us with a default notice. Can someone please explain exactly why you receive a default notice and are HSBC correct in sending one in this case.

Many thanks for all your help and support

fermi

If you are paying reduced amounts under the DMP, then a default is pretty inevitable anyway. And this one just sounds like an automated one as the new payment arrangements haven't been picked up.

Arguably they should have perhaps recognised that, but it's a little "neither here nor there" as it would be a default one way or another.

In fact if you are going to have a default issued/registered then sooner the better in some ways. Sooner it's done then the sooner it expires off your credit record.

beingpositive

Fermi, I really appreciate your advice and all of those in this forum and am wondering if you or anyone else can to help me with argos

1. Notified Argos in December that we are seeking help re; debt. They did not feeze interest
2. Jan they agreed to reduce interest but they did not do this until March
3. Charged late payment fee for feb
4. Not replying to my letters.
5. Reduced interest is not low enough as paying £20 per month but interest is £14.
6. Home Retail Group have not subscribed to the Lending Code.
Where do I go from here???