Incorrect Late Payment on Credit Report

DebtSlave

Hi, I'm having an ongoing problem with HSBC marking late payments on my credit file. I have a loan with them, and although it is paid through a DMP I have never made a reduced or late payment. I have been paying it for 7 years and for some reason last December HSBC suddenly decided to mark it as DMP and late payment. They then did the same in Jan and Feb so I rang them to complain and after various phone calls and messing about I said I'd go to the ombudsman if they didn't change it and they were suddenly able to change it to OK. They then did exactly the same for March, April and May! I rang them to complain and was assured they would change it. I checked on Noddle this morning and they have corrected those and now marked June as late!! What is their problem?!

National_Debtline

If the loan is being paid through a Debt Management Plan (DMP) then this would mean that the payments are lower than the contractual rate, therefore HSBC can mark your file as ‘arrangement in place’ or ‘DMP’. So, I am actually surprised you have managed to the information amended on your credit file so far (as only incorrect data can be removed).

If they don’t ‘default’ the account then the debt will appear for 6 years from the date it is settled. If they do default it then it will show for 6 years from the date of default.

Laura
@natdebtline

Caladan

Can you clarify - Are you saying your repayments are being made in full, in line with the original loan agreement? By which I mean the DMP has not negotiated a lower payment on your behalf?

If that is the case - I can't see why HSBC would need to report it as DMP (even though it's aware there is one in place).

Nevertheless - For a DMP to work, usually all lenders need to agree to reduced payments, it would be really weird for the lenders to agree when one lender to keeps receiving full payment whilst all the others suffer shortfalls.

DebtSlave

Hi, I am currently paying 50% more than the original agreement. Up until this January I was paying the agreed amount- HSBC made me take out the loan (to consolidate) before they would accept my DMP, but it is interest free. This is why I can't understand why they've suddenly started to do this, if they'd marked it as DMP from the start I could understand it. I wonder if the DMP marker automatically assumes the payment is late? It just bothers me because I did have two defaults which dropped off last year but I've diligently paid this loan all along so don't want to be punished now with only months left to pay.

Thrugelmir

DebtSlave wrote: »

HSBC made me take out the loan (to consolidate) before they would accept my DMP, but it is interest free.

As a result the bank is not going to be repaid in full for the original debt. So the marker is there to advise other lenders etc of this fact.

DebtSlave

Ok, I just wonder why they waited seven years to put it on? Will it disappear when I finish paying?