Does defaulting always register a default?

DebtClearer

Guys a simple one really. A few months ago I called HSBC and cancelled my credit card. I asked them to confirm the balance was zero and they did and I forgot about it. A few months later I recieved an envelope with 2 letters in both of which were defaults on non-payment of the CC with values of about 7p and 9p.

I was never even informed about either of these payments needing to be made. HSBC had removed the card from my net banking profile and they had confirmed the account was fully settled. I called HSBC and made the payments which must have been some interest added after the account was settled. The guy couldn't advise me whether the defaults would affect my credit history as it wasn't his dept but he appreciated that obviously a mistake had been made,

My question is did I actually recieve 2 defaults here? I ask as I am weighing up whether or not I now need to go all the way through the tiresome process of writing letters etc. I have since applied for a 0% Barclaycard and got accepted with no probs and a £5k limit. I have never used Experian or anything. In the next 2-3 years I am planning on buying a house so just want to see if there is anything I should do.

YorkshireBoy

DebtClearer wrote: »

I have never used Experian or anything. In the next 2-3 years I am planning on buying a house so just want to see if there is anything I should do.

You should obtain your credit reports from Experian & Equifax.

It doesn't appear HSBC have placed any negative history on your file (otherwise it may have affected your Barclaycard application), but for £2 each (or take the free trials) you could be certain.

DebtClearer

For clarity I should add that the 7p payment was for one August and was never sent to me. It only arrived in September at the back of the now 9p payment which I had also missed (2p interest).

I had a green account so no notifications and the credit card was removed from my online banking so I had no possible way of preventing this. If anything is listed should I just write all this in a letter?

Would any default normally stop me obtaining future cards? I am concious that I want to look as good as possible so I was concerned about running a credit report myself as I have heard they can make you look bad?

Thanks for helping Yorky.

YorkshireBoy

You need to differentiate between the two uses of the word 'default'.

Lenders use the term 'default' in a letter to shock you into acting. For example, in it's true sense you have defaulted on your contractual agreement by not making a (single) payment.

However, a default registered with the CRAs will be prefixed by 6-8 missed payment markers.

DebtClearer

ahhh I didn't realise that. So it is only the CRA defaults that will affect my credit rating?

inmypocketnottheirs

It is Default Notices that affect your credit reference. A lender has to give you 30 days to correct any transgression and that is the purpose of the Default Notice. Once the notice is served, if the position is not put right, I.e. payments bought up to date, within 30 days then a Default is registered at te CRA's.

Defaults remain on credit files for 6 years and makes obtaining credit almost impossible.

DebtClearer

So it's safe to say I have no defaults as I've just got a 0% 5k card with barclaycard?

YorkshireBoy

DebtClearer wrote: »

So it's safe to say I have no defaults as I've just got a 0% 5k card with barclaycard?

Possibly, but why make assumptions? I refer you to my reply in post #2.

inmypocketnottheirs

YorkshireBoy wrote: »

Possibly, but why make assumptions? I refer you to my reply in post #2.

If you want to know, get a copy of your file!