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

Tixy

A debt being statute barred and a debt being on your credit file are separate things.

Its possible a debt could have dropped off your credit file and not be statute barred, and also possible a debt could be statute barred and not dropped off your credit file.

Is it showing with missed payments on your credit file? or showing as up to date albeit with an increasing balance?

emmacashmore

The account is showing as being up to date but with increasing balance on my credit file.

Tixy

Do HSBC have your correct address? But you have not received annual statements or any letters in relation to this account?

I would send a subject access request (SAR) uner the data protection act to HSBC and see what they send back. They won't ignore a SAR.

emmacashmore

The subject access request sounds like a good plan.

In regard to my address, I have changed address several times since 2007 but the two letters I have written to them informed them of my new address but I still didn't hear back from them. Yes, I'll send them the SAR and see what happens!