Default

g_bom

Hi all.

Looking for some advice regarding a default notice from a credit card.

Basically, the card was cut up and no longer used with a balance of around £3k on it. A monthly payment in excess of the minimum payment was set up and made monthly. During a change in employment and payment terms/dates. A direct debit was missed. Rather than a re-attempt it appears the dd was just cancelled. I received no correspondence / bill reminder etc and so I hadn’t realised until the following month that the dd wasn’t taken. I bank with Halifax and the credit card was with HSBC. I went into HSBC advised them of the situation and requested to re-setup the direct debit. They said that wasn’t possible in store and wait until I get my next bill. I waited a further couple of weeks and still nothing arrived. I made a payment to the account manually in branch and again was told I would receive a statement. The next month went by and still, no bill or statement and so I again made payment in branch and informed of situation. Same line “you will get a bill”. This started March 2016. I received a notice from a DCA that they now controlled my account in January of this year. I checked my credit score and a default notice was placed in May 2017. I received no statement, notice of default, final demand etc from the HSBC. Therefore I am currently challenging the default through the financial ombudsman. First thing, surely I have a legitimate claim?

Secondly, what effect will the default notice have? My credit score has plummeted but I already have a mortgage, car finance, mobile phone and a credit card. If those payments are met then surely my rating will recover quite quickly despite the default notice remaining? I noticed that it jumped up by 80 points. I don’t envisage applying for any credit in the next 2 years or so and so if worse comes to worse and the default remains, will it effect me in anyway?

sourcrates

Hi,

"Default notice" and "default on your credit file" are two separate things entirely.

A default notice is issued when you fall behind with your payments, this notice gives you 14 days to rectify the breach, if you dont, then a default will be placed on your credit file.

Had you moved recently and not updated your address with HSBC ?

What reason do they give for there incompetence ?

If the FOS find in your favor, you can include default removal as a part of the remedy.

Otherwise you will find it difficult to obtain credit with an active default on your file.

g_bom

No I hadn't moved. Not sure the reason for the lack of correspondence. It's noted on my file at each stop. They haven't given a reason as of yet. The HSBC are incredible difficult to have dialogue with. They seem to think I am arguing the liability of the debt, which I am not. Thanks for your reply