blacklisted by HSBC

mcaizpp2

Hi a friend of mine had a HSBC bank account, with an overdraft limit of £900.

They had reached the overdraft limit and had stopped usding the bank account for I think about 6 months+.

Then one day HSBC wrote to her informing her that they had closed the account because their had been no activity on the account for a long time and that they had given the debt of £900 to a debtt collection agency and that they had blacklisted her.

My question is that this sounds fairly harsh for £900 to blacklist someone and secondly that they hadn't sent her any warnng letters that they would take this action, my firend is now screwed for the next 5-7 years until her credit rating is approved! So is there anything that she can do about it, to have the blacklisting reverersed etc?

I dont know it sounds like quite an extreme on the part of HSBC to take this action and without any warning aswell.

Thanks in advance for any responses.

myrnahaz

It's not harsh at all. If your friend hadn't made any attempt to reduce the overdraft, nor paid any funds in to the account for over six months, then I'm surprised that HSBC left it as long as they did. Your friend must have been receiving statements from HSBC, and they would have made clear reference to the debt. Did she seriously think that the bank would just write off £900?

System

What in fact your friend had done was bury her head in the sand for 6 months. He/she was very naiive if they thought they would just let her off with the money they owed.

jonesMUFCforever

Some banks use software that flags up accounts that have not received a credit for 5 weeks or more.
This usually indicates a problem like a runaway spender or someone who has diverted their salary/benefits/pension etc to another bank.

What normally happens is that one or two gentle reminder letters get sent out asking for an update to their circumstances - if they are ignored- and at least 3 months have gone by with no reply then the bank's collections team will get involved.
They would not just sell on the debt without attempting to contact the customer and agreeing a repayment plan.

I feel that the OP's friend has not told the story as it really was.