Help challenge an unfair negative factor on my credit report?

first_move

I would really appreciate the wisdom of the MSE gurus!

From 2009 I was paying off interest-free overdrafts on two student turned graduate accounts- one with HSBC and one with Natwest. Some of the money I had invested in an ISA, some of it I'd spent. Making interest on it, I wasn't in a hurry to pay it back but instead paid it back as they gradually reduced the limit. Then in 2011 I decided to clear Natwest completely and paid just to them for a few months, thinking I had the date of the next reduction in my HSBC limit clear in my mind. Wrong!

Next thing I have a final notice letter from Metropolitan Collection Services. I spoke to them and paid £700 off in 2 months quite easily because the money was around in another account. I just figured that this was my bad and accepted the result.

It's three years later and I've found that negative mark a real problem trying to get a cashback credit card with Nationwide, who now have my current account. My credit score is otherwise good at 960, and I've followed all the MSE tips to maximise it. I was told by a financial advisor that this sort of mark would disappear after 3 years, but it hasn't. I now hear from Experian that it will take 6 years. I will want to get a mortgage in that time and am worried that I won't be able to get a decent one if I can't even get a credit card.

So I started looking into getting a review of the mark because I felt that the punishment seemed a little harsh for the mistake. A financial advisor suggested speaking to HSBC, who printed for me a series of letters they said they sent me prior to the collection notice, but asked me to set up an application through Experian. Experian did this for me but I have now received a reply from HSBC saying they can't help me and I need to contact Metropolitan Collection Services. I feel like I am being led on a wild goose hunt. Presumably they hope I'll get bored and give up.

I keep meticulous records of all my documents and I looked through everything I have from HSBC but the letters they claim to have sent me after the date of my overdraft reducing, asking for repayment, are not in my file; only the final notice from MCS. I honestly think they didn't come to my address. I did move flat in June 2011, and I did let HSBC know. I asked them for the address they sent each letter to and they didn't have that information on the system.

What should I do next? Play the game and contact MCS? Go to the Ombudsman? 3 years ago I was quite happy to accept this was my own stupid fault, but now I'm thinking that maybe I haven't been treated fairly or properly.

Thanks for your help!

sinizterguy

If they printed out the letters, does the address not show on them?

Quimoi

What is the 'negative mark' on your credit file - CCJ, default, arrangement to pay, late payment marker?

Thrugelmir

first_move wrote: »

So I started looking into getting a review of the mark because I felt that the punishment seemed a little harsh for the mistake.

The whole point of Credit Files is to inform other businesses as to how you manage your financial affairs. If they didn't the information would be worthless.

first_move

If they printed out the letters, does the address not show on them?

No. They have printed me out letters to plain text format. They didn't have the date or address on them, but they wrote the date on each by hand. They told me that they don't still have details of where they sent each letter 3 years later.

What is the 'negative mark' on your credit file - CCJ, default, arrangement to pay, late payment marker?

It's a default, which has been settled.

All I want is a review. If they fairly review it and decide it has to stay then that's fine, because I did miss a payment. But I have all the original letters I was sent and I am certain I never missed 6 demands for payment through my own fault.

first_move

No one has anything else to add?

DCFC79

Your credit score of 960 is useless, lenders don't dven see it so try not to get too fixated on it.

boo_star

first_move wrote: »

No one has anything else to add?

MCS appears to be HSBC's in-house debt recovery team. Once it reached that point you had almost certainly defaulted, with an entry placed on your file.

Once a debt has reached a debt recovery team you're looking at 3 months without payment/communication.

It seems fair IMO.

Edit: To be clear, the payment you made was probably 3 months or more after a period of non-payment/communication. Regardless the default had already been entered.

10pence

MSC are indeed HSBC in-house debt collectors.

A few things to add here;

1) HSBC should be able to tell you the various addresses on file, whether it be a 'home' or 'correspondence' address. It is very common for letters to be sent to the wrong address as the 'services' for each address is incorrectly updated. If you visit a branch and get someone with experience to verify where mail was being sent that would help; this is done under address settings or services. As for not bing able o say where mail was sent last 3 years I would worry as date should be on file for at least 7 years.
Whether it be the banks fault or your own if mail went missing due to incorrect address input, will be difficult to prove.

2) HSBC stores all correspondence electronically in what's called 'customer folders', these are where you and staff can find all activity on the account, such as mailings. The staff could have been able to print all letters sent, or at the very least allow you to see the computer screen so you can verify the dates and what letters have been sent.
Note, HSBC will not have any MCS correspondence on file.

3) A default can be issued between 3 to 6 missed payments. If you can recall where you would have done payments to that account from then supply the proof, it will help with a review.

boo_star

10pence wrote: »

MSC are indeed HSBC in-house debt collectors.

2) HSBC stores all correspondence electronically in what's called 'customer folders', these are where you and staff can find all activity on the account, such as mailings. The staff could have been able to print all letters sent, or at the very least allow you to see the computer screen so you can verify the dates and what letters have been sent.
Note, HSBC will not have any MCS correspondence on file.

Having worked for a bank that seems unlikely. People entering their phone auth would be passed to us, collections, dr if they used the IVR.

Branches could see our front page notes though. "If customer telephones in pass to <department>

10pence

boo_star wrote: »

Having worked for a bank that seems unlikely. People entering their phone auth would be passed to us, collections, dr if they used the IVR.

Branches could see our front page notes though. "If customer telephones in pass to <department>

Having worked for HSBC for more years then I'm comfortable with, the branch network do not see any notes for their in-house debt collection company. Do not confuse banks collections department with debt collector; with HSBC once it has HSBC's collections team have 'sold' the debt to MCS or another debt collection company they no longer deal with it in branch or are notes seen by branch.
Furthermore, HSBC telephone system doesn't work that way either; once passed checks they will still be in normal telephone banking system and will have to be made to ring another separate number for the collections team, unless they've updated the system and can transfer people.