Bank account got closed due to debts

andersonchenghy

My bank account was closed by HSBC, with a debt of £450
Because I have taken a gap year, and went to Hong Kong.
I presume i will still have the interest free student overdraft, so I ignored it for a year, just now I was checking my HSBC online banking and they told me it got closed off. So I gave them a call, and they say they will not be able to open back up the account, and it will damage my credit score, and I need to pay the debts back to metropolitan collection company. I will never be able to open a bank account with hsbc ever again.

Will this damage my credit score a lot ? Because I still need to get my student loan and pay off my tuition fees, will i be able to open another bank account with another bank ? I have been with hsbc for 10 years and with perfect credit score, apart from this silly mistake i made.

What is the first thing I should do? Apart from paying up all my debts. As I am currently in Hong Kong, will I be able to open a bank account remotely just so that i can change my bank details with my student loan and continue to get the loan. Or because of this credit history, I will not be able to open another bank account with another bank

I am not sure if i am at the right sub-forum. Please give me some guidance on what I should do, I am scared I will not be able to get a mortgage and open a bank account. Is there anyway i can talk to hsbc about it and reopen my account, as i was oversea for more than a year.

Thanks a lot

DCFC79

It hasn't damaged your credit score at all ( per my signature) HSBC may have added an entry to your credit file. Your credit history is what matters.

Someone else will be able to provide answers to your other questions.

Dobbibill

andersonchenghy wrote: »

What is the first thing I should do? Apart from paying up all my debts. As I am currently in Hong Kong, will I be able to open a bank account remotely just so that i can change my bank details with my student loan and continue to get the loan. Or because of this credit history, I will not be able to open another bank account with another bank

Do you have a UK address or did you change everything over to Hong Kong?

If you have a UK address and can be electronically ID'd when you make an online application then you should be able to do it remotely.

If you attempt to do it online, just do one application. Multiple application don't look good. Are you planning to apply for a Student account or just a Current account?

andersonchenghy

Yes, i do have a UK address, I did not change any of my details while I was away, which i should have done.

So going for multiple application doesn't look good ? I would like to open back up a student account, if I could. are there any banks that will be willing to open it for me or am I kinda screwed atm? And should I pay up all the debts first on monday before I do anything else ?

thanks

Dobbibill

Not changing your details has probably been a good thing to enable you to do this remotely.

With a student account, you normally need to evidence your studies with your confirmation from UCAS or your Uni. A current account does not require this, hence my question.

You are still able to open an account elsewhere from HSBC so don't worry, just the type of account would determine how much additional info you need to provide.

Have you given any thoughts to who you may apply with?

andersonchenghy

thanks for the quick reply, it's 0508 midnight in Hong Kong atm and I am still up and scared as hell.
So you reckon I will still be able to open bank accounts but hsbc ? I am just scared i will not be able to do so. I guess I will open a current accounts for the time being, and change it back into the student account when I am back in the uk at the end of sept. And no I haven't thought about which bank I should go with.

thanks again, this really relieves me a lot

Dobbibill

If you are going to open a current account now at least you will be able to provide bank details to have your student finance paid.
I would not apply for an overdraft with the current account during the application process, just get it opened initially and that will be one hurdle done.

Please come back and let us know how you get on.

andersonchenghy

Hi there,
I am still struggling on which bank I should apply with
Do you have any suggestions on which bank i should go with ?

thanks,

DCFC79

andersonchenghy wrote: »

Hi there,
I am still struggling on which bank I should apply with
Do you have any suggestions on which bank i should go with ?

thanks,

Take your pick, there's enough in the UK.

Go with Nationwide.

Dobbibill

Have a look at the list here to see what account best suits your needs. http://www.moneysavingexpert.com/banking/compare-best-bank-accounts
These will credit score you.

If this fails then you might want to look at a basic account. Here is a list of those here. http://www.moneysavingexpert.com/banking/basic-bank-accounts
These will just do an ID check.

HTH

andersonchenghy

Okay thanks,
or before I do this, should I pay off the debts first ?
cos I got it on hold till beginning of oct.
Will they not let me open an account if I dun pay off my debts first ?