HSBC default - Is this fair\reaonable\legal

mchappy

Good evening everybody,


I've never really thought much about credit, I rarely have the need. This all changed a couple of weeks ago when I found out that I had a default on my file.


In 2012 I fell out with HSBC, I had 2 accounts that I used to shuffle money around, a bills account for the monthlies and my current account for salary and day to day spending. In March and April 2012, I must have been distracted or something, but I allowed my bills account to go overdrawn on 3 occasions as I had not transferred the cash across from my current account.


Each time the mistake was rectified within 48 hours, the value s were small, and there was always more than enough in the current account to cover it. However, HSBC decided that I should pay £50 as punishment for my mediocre account management skills!


I went into branch and challenged this, expecting them to look at my total accounts activity and to retract the charge. To my surprise they didn't. So I decided to move all my banking. I paid the account up to date (including the charge), and moved to Lloyds.


They subsequently charged me a further £150 unauthorised overdraft fees, and 52 pence interest. I wasn't aware that I was going to be charged the £50 so it fell overdrawn for a couple of days. Same as before though, small amount and more than enough in the other account to cover this off.


I paid the 52 pence interest, just for good measure and wrote telling that charging me £150 is grossly disproportionate and that if they want to recover it, then please use the relevant legal challenges.


I then basically forgot about it, got a few reminders and chasers, but wasn't concerned until I went to move my mortgage and discovered they had applied a default.


Now I need to get rid of the default. I have unsuccessfully tried a polite appealing to their better nature letter. I now need to look at other options.


Option 1 - Did they tell me about the default? I would appreciate some advice on if there is a legal position on this. They have told me in their letter that they wrote to tell me that if I didn't pay them that they might refer a default, but remarkably failed to tell me that they had written to tell me a default had been executed.


Do they legally have to write to you to inform you that they have made a default reference, or is warning you that it is going to happen enough?


Option 2 - The "credit" I "defaulted" on was not money I borrowed from HSBC, it was a charge levied that they then applied and then forced as a credit. Can that be a default in the same way that borrowing money and not paying it back is defaulting on a credit agreement? Do I even have a credit agreement with them?


Option 3 - I'm not adverse to lawyering up and throwing some money at this (my mortgage is costing me £300 per month more than it needs to). I could at the time and now pay the £150 charge, it is purely a principle issue. Does anyone know of any service that might want to look at this?


Suggestions very gratefully received.


Oddly enough, after I was told about this default I checked my Equifax and Experian credit report, thy both show a default, but Experian give me a rating of 999 and Equifax 384. I'm at a total loss of how they can be so different. Not that it matters I just need that unjust default removed.

[Deleted User]

mchappy wrote: »

Experian give me a rating of 999 and Equifax 384. I'm at a total loss of how they can be so different.

That is the very nature of random numbers. It would be more surprising if they were in any way similar.

With regards to the default, you should have been given a notice of default. I suspect HSBC will tell you they sent you one, during the time you "basically forgot about it, got a few reminders and chasers."

Ask them.

DevCoder

Option 2 . You have an informal (but still legal) overdraft credit agreement, also you were in an agreement with them under their T&C's

Option 3. You could lawyer up and get someone to represent you in court. Any number of lawyers will accept this as a case, however the only ones who will get any money out of this will be your lawyer. The unfair charges case has already been won by the banks.

mchappy

Deleted_User wrote: »

That is the very nature of random numbers. It would be more surprising if they were in any way similar.

With regards to the default, you should have been given a notice of default. I suspect HSBC will tell you they sent you one, during the time you "basically forgot about it, got a few reminders and chasers."

Ask them.

Hi, thanks for replying. I have had letter from them this week, in response to my "please remove this default request". The letter made reference to letters that they sent me warning me that they would place a default, but no mention of a letter indicating that they had placed a default.


Therefore, there is a chance that they didn't send a letter saying "we have placed a default". So my question is, do they "have" to do that, or is warning that we "might\will" be placing one if you don't comply enough?


Thanks.

Tixy

No lenders do not tell you that a default has been filed and do not need to do so.

mchappy

krisdorey wrote: »

Option 2 . You have an informal (but still legal) overdraft credit agreement, also you were in an agreement with them under their T&C's

Option 3. You could lawyer up and get someone to represent you in court. Any number of lawyers will accept this as a case, however the only ones who will get any money out of this will be your lawyer. The unfair charges case has already been won by the banks.

Thanks for the reply. I'm not seeking any money. I just want the default removed.

meer53

They don't have a reason to remove the default. It will most likely remain on your credit file.

Thrugelmir

mchappy wrote: »

I went into branch and challenged this, expecting them to look at my total accounts activity and to retract the charge. To my surprise they didn't. So I decided to move all my banking. I paid the account up to date (including the charge), and moved to Lloyds.

In business some customers simply aren't worth the bother to retain.

matttye

I'm afraid that the default won't be removed simply because you need it to be removed.

If it's valid, and it sounds like it is, it will stay on your file.

happy_bunny_2

Is the default fairly dated? Within 6 months of the £150 charge?

Try the mortgage board to see about getting a decent mortgage with that default. You may need to pay it and give it a month to get updated as settled on your credit file.

mchappy

happy_bunny wrote: »

Is the default fairly dated? Within 6 months of the £150 charge?

Try the mortgage board to see about getting a decent mortgage with that default. You may need to pay it and give it a month to get updated as settled on your credit file.

Yes, just. "Default" was effectively in April and the credit file amended in October, not that they actually told me about it.

I've got some lines of investigations going and started some conversations with a professional. I'll see how these pan out.

I thought you had to have a CCJ before anything could really screw up your credit file. I know better now. If nothing works, then I'll just have to settle it. The rest of my report is completely clean, not even a late payment, and there is enough activity. I've already had informal confirmations from 2 mortgage providers that as soon as it is settled, then they are ok to go ahead, these are competitive enough (2.09% 75%ltv no early repayment).

Thanks for your reply.