Old HSBC loan still apparently open

emmacashmore

Hello,

About a year a go an old HSBC Flexi loan account appeared on my credit report as open and as increasing by £40 each month. As background to this, my current account with HSBC, to which this flexi loan was linked was closed by HSBC in 2007 as a reaction to my having claimed back several thousands in bank charges. At the time, since they closed the current account, I assumed that the flexi loan was also closed. It was however at its limit of £1,000 at the time. I foolishly assumed they'd written this amount off as I never heard from them again.

So, fast forward to 2013/14 and suddenly the loan shows up on my credit report and it starts to show that it's increasing by £40 a month since this money is no longer coming out of my HSBC current account as it's closed.

I have written to HSBC twice now, hoping to point out that since I've not heard from them since 2007, surely the account should be statute barred by now? I have had no response to either letter. So, I wrote to Experian and asked them to look into it for me. HSBC waited until past the 30 days, but at about 35 days, they replied to Experian simply stating that the account was still open. Experian have therefore not been able to take the account off my credit report.

It seems that because HSBC haven't reported my account as defaulted, but still open (it's showing as just steadily increasing in debt by £40 a month), it doesn't class as being statute barred although I've heard nothing in 8 years. HSBC are managing to keep it open and therefore showing on my credit report.

I want to apply for a mortgage this year but this is really dragging my credit rating down, not to mention it's rather scary to see that my £1000 loan has now increased to £3,500 due to the £40 each month!!! I'd be happy to pay the £1,000 and close it, but HSBC won't reply to me and I'm not sure they'd accept the £1,000 as full settlement.

What should I do?

Emma