Good news....default removed

AdRock

I have some good news......I have got a default removed from my credit file.....or at least it will be removed within 8 weeks.

HSBC put a default on my credit file after my account got passed to Metropolitan even though I was making monthly payments as I never received a letter they wrote to me saying it would go to collections if i didn't settle £380.

I paid off the debt in full as I said i would and only found out they put a default on when i tried to apply for a mortgage and got turned down.

I complained twice and was told there was nothing they could do and i was about to accept it when i spoke to the financial ombudsman. I gave them some details and they wrote a letter to HSBC saying i had put in a complaint that they were going to review. That was last week and today i got a letter from HSBC giving loads of waffle about it wasn't their fault i never received the default letter etc but as a goodwill adjustment due to me settling the account when i said I would, they wrote that they have removed the default but it would take 8 weeks to show on my credit file.

I am just glad i never gave up as i've read online it's really hard to get a default removed.

One question though. On the credit file when it is finally removed, how does it appear? Does the red box with a D get removed and just show as settled like any other account that has been closed?

fermi

It should say settled form the date you did settle, and will be removed from your report 6 years from that settlement date.

Any late payment markers up until that date will stay if they are valid.

DEC1982

Hi I have the same issue with HSBC at the moment.
Can you tell me who you addresses your letters to and what you put in them so I can attempt to get mine changed please!

AdRock

I wrote to HSBC back before Christmas and I kept the letter I wrote to them. I also kept their reply as I knew i may need it again. I wrote a letter again last month asking for a goodwill adjustment as i had settled the account like i said i would and kept that letter and also the reply from Metropolitan. I was surprised why Metropolitan replied as I addressed it to HSBC.

I wasn't happy with their response so i though i would ring the financial ombudsman and they took some details. They wrote a letter to HSBC saying they were dealing with my complaint and at the same time they posted me a form to fill in which most of it was completed over the phone. I sent the form and my correspondence to HSBC yesterday and today i got the letter saying they were removing it. I don't know if it was because i got the ombudsman involved for the reason to remove the default as the ombudsman hasn't done anything yet. Maybe they didn't want the hassle.

Have you kept any letters from HSBC? I told them last year my partner was on maternity leave so didn't have the money to settle it all at once. They told me in the letter that there was no formal agreement to pay back at £120 per month and that it wasn't their responsibility for Royal Mail not delivering the letter as they assume you got it. They also said because i made the last 2 payments to Metropolitan as i said they would, they would do a goodwill adjustment and remove the default.

It might be worth telephoning the financial ombudsman and explain the situation. They will take some notes and write to HSBC. It will get passed to the customer care team with a reason why you are complaining. My reason was I never received a default letter for £380 and if i had, i would have settled even though i made payments every month.

You never know, a letter from the ombudsman may make them change their mind.....worth a go.

DEC1982

I received the default last year after they removed my overdraft. I didn't receive any letter about them defaulting only that they had passed it to metropolitan. I settled it in instalments by jan. do you think I need to complain to hsbc first before the financial ombudsman? Maybe asking as a gesture of goodwill? Which dept do I need to address it to? Sorry for all the questions.

chanz4

It will go to last status, eg 5 or 6

fermi

AdRock wrote: »

One question though. On the credit file when it is finally removed, how does it appear? Does the red box with a D get removed and just show as settled like any other account that has been closed?

fermi wrote: »

It should say settled form the date you did settle, and will be removed from your report 6 years from that settlement date.

And make sure they do mark it as settled from that date. It shouldn't be left showing x months in arrears. It should show as settled.

If HSBC do not do that, then complain again.