Switched banks, they missed payment, is my credit rating at risk?

tony7262

Hi,


Been a long time user of the site but never asked a question so apologises if I break any house rules or anything that I don't know about...


I have recently completed a switch from HSBC to Halifax for the switching incentive. I used to bank switch guarantee and all of my direct debits have moved over and swapped correctly except for one.


I have a personal loan with HSBC that I have been paying off for the last year and have another 18 months to go on. The payment was due to go out on the 25th but for some reason didn't. I'm normally really good at checking when things have left the account but been distracted the last week and didn't notice but this morning got a call from HSBC saying I had missed a payment.


After telling them I had switched banks they advised I ring Halifax and check what is going on, I did and Halifax tell me everything is set up right and HSBC just haven't tried to claim the DD. So back to calling HSBC and the person on the phone that time tells me my direct debit has been cancelled as my account that I pay out of (my old HSBC account) was closed.


I say I used the switching service and have to explain what this actually is to them (bit concerning) but they say I should have told them about the changing bank account - even though I haven't for any other DD and they have all changed perfectly. To solve the payment being late I paid this months bill on the phone to HSBC and set up a new direct debit to my Halifax account for the forthcoming payments.


My concern is though whether this will affect my credit rating, I asked HSBC and they said yes it will and I don't see how that is fair as this is not my fault and somewhere a computer has messed up as far as I can see? HSBC have opened an 'investigation' to see why it didn't move and that can mean they can update the credit file.


My partner and I are looking to buy a house in a couple of years and don't want something as stupid as this affecting our chances - any advice on where I stand would be most appreciated


Cheers,
Tony

stevenhp1987

Why did you not ring up and pay on the 25th when the payment never came out?

If this was your first time you were late paying then raise a formal complaint to both banks. You'll find that HSBC will likely waive any charges etc as it's a genuine error, but you should check your statements regularly and ring up and pay if the payment is missed.

tony7262

Hi Steven,


Thanks for your reply - as I stated I do normally check my statements but have had quite a lot of stuff going on recently and have been distracted, plus considering every other payment went out on time and correctly I wasn't as concerned.


And with me moving banks I knew it was due around the end of the month but not sure which day exactly so assumed as it hadn't left my account it wasn't yet due.


My question was more what would be the impact on my credit rating - I didn't really need a lesson in how to manage my bank account or be told I had done something wrong!

stevenhp1987

tony7262 wrote: »

My question was more what would be the impact on my credit rating - I didn't really need a lesson in how to manage my bank account or be told I had done something wrong!

Hi,

it's highly likely it would be marked on your credit report as a late/missed payment.

However, as I said, if you give them a call and make a formal complaint, citing your reason, then if it's a first offence, they will more then likely not mark it as a missed payment and remove the £12 charge.

If you've not been charged the £12 missed payment charge, then it' likely it wont show on your report as a missed payment either.

tenchy

Bit of a general question, but why should something like this have any effect whatsoever on someone's credit report? It's clearly an admin error, but worst case, could result in someone being declined a mortgage. The more I find out about credit reports, the more I'm thinking it's a broken system.

tony7262

Thanks, I've rung HSBC and raised a complaint with them about the impact on the credit rating. They have said it can take up to 8 weeks and I will get a letter through the door confirming the outcome so fingers crossed.


Will keep an eye on my credit report between now and then to see if they have reported it, but didn't get charged a missed payment amount or anything so maybe they haven't - they wouldn't give me a straight answer on the phone 'it might have been recorded', 'I would expect it to be recorded but can't see that it would have a lasting effect on you', etc


And completely agree tenchy, and that was what I was trying to stress to HSBC - but they just didn't seem to care. A case of 'we haven't got our money and we don't care why' sort of approach it seems.

cjmillsnun

This one is down to Halifax. You should go to them to recover the late payment fee. You will likely still have one missed payment however the impact is minimal.. We all forget something occasionally. If HSBC come back and say with regard to removing the marker, then don't panic.

YorkshireBoy

You need to ascertain whether you had a Direct Debit or a Direct Transfer type payment arrangement for your HSBC loan.

If it was a Direct Transfer then I don't think you've a leg to stand on with regard to your credit report. However, if it was a Direct Debit then the banks have an obligation (under the CASS, and maybe a code of practice too?) between them to ensure no black marks are placed...and if they are they're swiftly removed.

There's a poster on here who works (or used to work) for this banking group. Hopefully she will see this thread and re-confirm what I've said here.

bengal-stripe

Has your HSBC loan the condition that the monthly payments have to come from an HSBC current account?

tony7262

Hi YorkshireBoy - thanks any idea how to determine which or the two it is?


CJmillsnun - no late payment charge been imposed so far so think I'm safe for that, and I do get the impression that one late payment mark isn't the end of the world - just annoying that its likely to be there (the investigation with HSBC not withstanding) when I had the money in the account to pay it just they didn't seem to take it.

YorkshireBoy

tony7262 wrote: »

Hi YorkshireBoy - thanks any idea how to determine which or the two it is?

Loan paperwork?
Still have (limited) access to HSBC online banking?
Ask HSBC? (preferably in writing)