HSBC randomly defaulted savings account !!!

timboy1984

It may be that you were overdrawn but didn't know because it was below the £10 threshold (most banks do not charge for withdrawals below £10 - so you wouldn't have received a notification).

The second thing is this was a 'savings account' so I'm really confused as to how any monies could have been withdrawn / paid unless it was another current account being used as a savings account. Surely no direct debits would have been assigned to this account? And I think that would be your main argument for a dispute.

kellsm

No direct debits - it was an instant access savings account that came with a card and they say it ended up overdrawn. Not sure why they allowed that to happen if this is actually the case. I did occasionally withdraw from it but seems unusual.

kellsm

I'm just really praying this isn't an actual default as my MA is doing a dip check any time now that I agreed to before I saw this

stclair

I don't think a savings account should even report to the CRAs.

I'd raise an official complaint personally.

stclair

Candyapple wrote: »

I can't say I've ever heard of a savings account with a debit card attached to it - that would be a current account. Savings accounts can sometimes have a card attached, but that is only to withdraw/add funds into the account and you certainly wouldn't be able to use it in a shop/online or go overdrawn.



What is this from? Something the mortgage advisor told? If it's from your Equifax report can you explain it a bit more clearer please because that is not how they report things. Can you take a screenshot?

NatWest, Yorkshire Bank and Clydesdale bank used to offer debit cards on savings accounts in the past.

20aday

stclair wrote: »

NatWest, Yorkshire Bank and Clydesdale bank used to offer debit cards on savings accounts in the past.

NatWest used to offer a Solo card on their savings accounts before changing them to the "online authorisation" only Visa Debit cards.

Yorkshire Bank (and imagine Clydesdale) still offer such savings accounts (requires a branch visit and is an "online only" Debit MasterCard).

It's definitely an error on behalf of Equifax; I had a Co-Op bank account a few years ago that I stopped using. The icon shows as grey with the "zzz" symbol.

IMHO that's how it should be showing on your account (even though savings accounts are never reported?)

kellsm

Thanks for your help everyone. I've been in touch with Equifax to try and get it amended - I've since checked my experian closely and it is also on there as a simple closed account - no balance or default, same as noddle. I do think it's Equifax's mistake, unless they've been sent something the others haven't !

20aday

Oh it's very much possible for the CRAs to get it wrong and cause hassle!

My landlord had a letter last year from AmEx saying they'd received data from Callcredit and that he'd passed away!!

Luckily it was only AmEx that ball5ed up. He was re-mortgaging at the time but his RBS advisor reassured him they'd not received such information.

10pence

timboy1984 wrote: »

To be perfectly honest, £9 is a joke. And any late payments can affect your credit file for 7 years. The fact the account was closed in 2013 indicates there was no funds owed at the time else they would not have been able to close the account. Really, I would dispute this.

HSBC would have paid any debt and then closed the account, especially if it's been dormant; if the debt was large then it normally is sold onto HSBC's internal debt company, Metropolitan.

Or if the customer has another account the debt could have been paid via the right of set off and then closed.

In some instances the account could have been paid off by HSBC - writing off the debt and then closing the account. This happens on small debts and accounts where no contact has been. You will be amazed at how many people change addresses and never bother to contact the Bank to update details; only yesterday I had a customer call to query his MPPI payments on an address they moved from over 8 years ago.

timboy1984 wrote: »

Do you still have access to the online banking with HSBC to review your statements? If not, I'd request them. But do not do this as 'statement request' as they can charge you approximately £10 per statement.

Duplicate statements are normally a £1 per sheet, some branches will waive the fee if printing in branch - even more so if attached to a possible complaint.

timboy1984 wrote: »

It may be that you were overdrawn but didn't know because it was below the £10 threshold (most banks do not charge for withdrawals below £10 - so you wouldn't have received a notification).

The second thing is this was a 'savings account' so I'm really confused as to how any monies could have been withdrawn / paid unless it was another current account being used as a savings account. Surely no direct debits would have been assigned to this account? And I think that would be your main argument for a dispute.

Whilst some banks might have a buffer, in most cases not widely advertised as a feature of an account to be used (abused), HSBC most definitely will notify if the account as been overdrawn for some time.

HSBCs instant Access Saver, like their child's account and Basic Bank Acounts will have a 'nil' limit placed on them to stop accounts going overdrawn. To clarify a 'nil' limit means no lending allowed, as in scored lending but accounts can go overdrawn.

In some cases these accounts can and will go overdrawn: from personal experience I've seen this with the Instant Access Saver and it was a bounced cheque being paid into the account and the funds being withdrawn before fully cleared.

Many moons ago with these saver accounts people did have direct debits and standing orders on them, the bank tightened up on it but it did happen.

The threadstarter can visit any branch of HSBC and get the answers by a staff member reviewing the notes for the account and statements. Any letters sent should be scanned onto the system.

kellsm

Thanks for your reply, so in your experience you think that they would've sent this to a debt collector if they had defaulted the account? This definitely didn't happen as they are my main bank and I have always been and still am an account holder.

I wouldn't have paid any cheques into the account so I'm still unsure how it got overdrawn.

From what I can see it is a mistake my Equifax (praying it is) as the other agencies are just reporting the account as closed.

Thanks for your help