HSBC Bank. So Annoyed

Matthew_c

I am currently a full time mature student (37 yo) and had spent around 90% of my overdraft from my spare account however had not paid into for sometime.!

I was then called by a representative at a!HSBC!call centre who requested payment in full. At this time I stated that it was not possible as I was not in full tme employment as I was currently a student and stated that I could pay x amount and the account would be cleared by the end of July. This was carried out before the end of July and is now even in credit. The account is still open and gives me access to take cash out.

I asked on several occasions during various calls would this arrangement have any adverse effect on my credit file. I was told NO on every occasion unless I did not pay it and it was passed on to debt collectors

You can imagine my horror when I have logged onto my credit file to see that I have an "AR" on my credit file since May 2015 which has now adversely affected my credit file and will do for the next 6 years.

I spent 6 years repairing my credit file after an ex partner ruined it for me and had a near perfect credit file until one of there representative misadvised me on the phone.

I am very unhappy at this situation as basically I have been misadvised and if there was any risk to my credit file I would of paid the overdraft off immediately.

I have sent a complaint email into HSBC - what are my chances of having the AR removed ? I was about to get a joint account with my wife but am now holding off because of this.

CKhalvashi

The best you'll get is a default after 6 months.

HSBC are allowed to recall the overdraft in full at any time and they have done this.

Matthew_c

How can I get a default on an open bank account? The account is still operational.

Here_Comes_The_Judge

Open or not. The Bank has called in the overdraft. Their call, and it would appear they have made it.

shortcrust

I don't think the OP's arguing about whether the bank was right to recall the overdraft. They were essentially told that repaying in instalments wouldn't be recorded on their credit report. This turned out not to be the case so it sounds to me that their complaint is justified.

Matthew_c

Correct shortcrust...If they had said yes. I would of spoken to the family and arrange to have it paid that day. They gave me options and misinformed me which has led to the complaint going in.

ac427

Do the bank not have a duty inform the customer, otherwise what is the point of an overdraft if they can just pull the rug from underneath you.

Could the Banking Onbudsman help here?

Matthew_c

I've got the issue going through hsbc customer care team so hopefully they will see their error and they will adjust my credit file

cakeforbrains

We're having a similar problem, OP, albeit for a much shorter AP period. Here is the thread.

My husband called nationwide this morning who said that they would review the audio logs to see if he was told that the arrangement would have an adverse affect on his credit file. I literally just learned last night how detrimental this can be and it seems so disproportionate, especially when these arrangements are packaged as 'helping you out' or 'doing the right thing'.

20aday

When I was younger I entered into a DMP w/HSBC (credit card in my case) and my files were marked with AP. Thanks to a brilliant forum here on MSE it turns out after six months the account should've been defaulted.

Template and thread here: https://forums.moneysavingexpert.com/discussion/4910894

Hope you get it sorted OP!

Matthew_c

Many Thanks, ill quite happily take this one all the way to the local courts to ensure that it is put right. hopefully hsbc will see that there operator has cocked up by misinforming me and will adjust the credit file