5 Year Battle Won against Mortgage Lender

Emby_2

Hi All,

I declared bankruptcy in 2009 and a year later started my "Credit File Clean Up". All of my creditors updated my credit files properly, some after a bit of a fight but one.

My Mortgage lender (HSBC) refused to apply a default to my credit file and it has take over 5 years fighting them on this and finally the FOS came down on my side a few weeks ago and the mortgage lender had to remove the incorrect information from my credit file.

They had recorded the account as only "Settled" over a year after my bankruptcy which would have meant the incorrect information would have been damaging my credit rating for well over a year after it should have disappeared completely.

Incredibly, the ICO completely failed to enforce their own guidelines (Completely and deliberately ignored them infact) so it put me on shaky ground when I took it to the FOS as they asked what the ICO decision had been.

After breaking down the ICO guidelines and how they apply to my case on numerous ocassions the FOS finally agreed I had a point. My mortgage lender was incredibly underhanded, dishonest and manipulating during the whole process.

Finally its all done and I have a clean credit file again with no sign of bad debts or bankruptcies.

A big thank you to Fermi who gave me the foundational information for me to battle on through.


:j

fermi

Excellent result. :beer:

And 'booooo' to the ICO for being such complete idiots.

Emby_2

Yes,

Im considering writing a letter the the gent at the ICO pointing out the FOS applied his guidelines where he didn't.

Dare I say it, but he seemed to deliberately and maliciously ignore the second half of the guidelines which applied to my case.

Ah well, water under the bridge.

alastairq

Don't 'consider it'....do it!!

All public departments really need to be shaken up vigorously if they are patently failing to apply their own rules and guidelines.

It is a real pity financial penalties are not imposed on these bodies if their own rules are so flagrantly ignored.

battyboimatt

They had recorded the account as only "Settled" over a year after my bankruptcy

I'm sorry but that sounds right, the date of default should be the date of your bankruptcy. then a year later they should mark your account as "Settled" to show the account is now settled.

It would not of stayed on your file any longer as it drops off 6 years after the default date, not the settled date.

sparkles12_2

Hi guys

I am in a similar situation , my bankruptcy was in 2009 and the mortgage company won't default the credit file to the date of the bankruptcy order date.

I just lost an appeal to the ICO where they state the default date recorded on my credit file should be that of the repossession date which was a year later . even tough they had possession earlier as it was a voluntary surrender

The ICO guidelines are very clear in 2014 and 2007 that the default date should be that of the bankruptcy order date and not after but they are failing to acknowledge their own guidelines and say as the property was a secured loan it only forms part of the bankruptcy when its unsecured but their guidelines on secured loans state otherwise

I just got my disappointing decision from ICO yesterday and the guidelines i quoted were not acknowledged at all

Any advice on how to approach this with FOS would really be appreciated , my credit score is sitting at 959 and in Jan 2016 i was planning to apply for a mortgage which ive got advice on but should the default stay as is im doomed for a mortgage until 2017

Your advice on how to approach this would be very much appreciated

fermi

https://twitter.com/fermi239/status/579199088702402560

sparkles12_2

I am really happy for you that you got this result as id given up all hope , great work in fighting this i hope i get the same result

fermi

It is quite disgusting that the ICO ignore their own guidelines.

xHannahx

Had the property the mortgage related to been repossessed?
A mortgage is normally only reported as default when repossessed. If it hadn't been repo'd the mortgage doesn't normally get entered into the bankruptcy and the mortgage company will rely on their security.
From your post I'm assuming it was repo'd in which case the date of default should be the date of repossession.

fermi

sparkles12 wrote: »

The ICO guidelines are very clear in 2014 and 2007 that the default date should be that of the bankruptcy order date and not after but they are failing to acknowledge their own guidelines and say as the property was a secured loan it only forms part of the bankruptcy when its unsecured but their guidelines on secured loans state otherwise

Correct. Assuming there was a shortfall that eventually went into the bankruptcy.

Para 14

a lender should file a default no later than six months after the date of a successful court application to proceed with possession unless

• the customer has made reasonable and agreed arrangements to repay,
• the lender can justify not filing a default on an exceptional basis. For example, the lender is fully informed of the circumstances and knows that payments will start again, or
• the loan has been included in a bankruptcy in which case the default should be filed in accordance with the guidance in paragraphs 47 – 48.

Para 47 - 48

48 Where a customer continues to pay a debt in line with the original contractual obligations, despite the debt being included in a bankruptcy or IVA ( including where the bankrupt agrees with Official Receiver that payments will continue), the lender would not be obliged to record the account as in default. If the customer stops payment at a later stage, the default recorded should show the date of the IVA or bankruptcy and the fact that it was settled only by IVA or bankruptcy as described in paragraph 51.