£1008 in 5 days or 6 year default. HELP

naffan1991

Hi There,

I’m looking for some advice about my current situation, I will try to keep it as brief as I can but it is a long story, and I am aware the fault is my own, I would just appreciate some advice on where to go from here.

For the last 2.5 years I have been on a working holiday in Australia with my girlfriend. When I left the UK I made HSBC aware I was heading to Australia (so that any card usage would not be blocked) and informed them I would not be able to receive any of there communications until I was back in the UK. At no point did they warn me or advise me of things to come, or potential issues. I left with my account overdrawn but within my limit. Over the course of the 2 years in Australia my UK account saw periodic use with my father occasionally sending me money for birthdays/Christmas etc. I had no problem withdrawing at any point. Unfortunately I must have miscalculated my last withdrawal, the exchange rate & charges as 6 months ago I went over my overdraft limit (which I was not aware of until today).

Fast forward to today, I’m back in the UK. I have just started work, and found a place to live with my partner. I went to HSBC to update my address details and unearthed the fact I am in a horrible situation. Over the last 6 months HSBC have been sending letters to my address pre-Australia demanding I bring the account in it’s limits (understably). Culminating in a letter recently saying they needed the full sum paid by 14 Nov or it would be defaulted and passed on. They then hit me with the bombshell of needing to pay it in 5 days (total £1008) or my account is being closed and passed to debt collectors, with a 6 year default then placed on my credit score. Having been completely unaware of all of this has left me a little blindsided today. And despite it being the first time I am aware of the situation unfortunately it is beyond the point of HSBC agreeing repayment with me unless it is in full.

I can not afford to pay £1008 in the next 5 days, and HSBC won’t budge (or at least have told me they cannot stop what is already unfolding).

I feel like my only option is to wait these 5 days then deal with the debt collectors, agree repayment and just have a mark on my credit score for 6 years. I am desperate to avoid this as the next 6 years will include my wedding, and the aim was to also buy a house. This will not be possible with poor credit.

Is there anything else I can do?

I asked my other bank Metro for a loan of £1000 but HSBC has marked my credit score for the last 2 months and this left my score too low to receive a loan.

I appreciate any advice you have to offer, even if it means pursuing this elsewhere.

Whilst I understand I am to blame here, I can’t help but feel frustrated that these things were happening without me being aware, and with HSBC being aware I was not in the UK.


Thanks for your help,

Nathan

[Deleted User]

If you can't afford to pay, then you'll have to accept the default. The only other alternative is to see if you can come to an arrangement and have an AP marker - but that would only be preferable if you can clear it in a month of two.

It's not your score that affecting you getting a loan - CRA scores aren't used in the UK. It's your credit history. Are all three of your credit files showing the same data or are HSBC not reporting to all three?

You can still have your wedding with a default. Poor credit is no barrier to marriage. And even a mortgage is possible, but you'll need to use a decent broker.

foxy-stoat

Sell stuff, try and get a credit card with a money transfer option, borrow from family, did you have any money left from your time in Oz?

Seems odd that you would leave the UK with debt with no repayment option for that length of time.

01afraser4

At such short notice, I'd suggest speaking with family members or friends to see if they can help out.

Be open and honest about why you need the money and put across a structured schedule on how you plan to repay the sum so they understand that you are responsible about it.

[Deleted User]

So you've come back to the UK after 2.5 years away with no capital at all?
How strange?

Try and borrow the money from someone/somewhere - £1008 is a small sum compared to many others, so it can't be that hard to clump it all together somehow.

Does your GF not have any money you can borrow?

If you've just started working you could ask HSBC to hold off and maybe give you some more of a grace period, though they're not obliged to given that this has been owed for over 6 months

David555

As above try and sell and borrow off friends and family if possible. The last thing you want is a default. That’s coming from somebody who made a similar mistake and got slapped with a default. You really really don’t want one!

Try some loan eligibility soft searches, they will show you how likely you are to be accepted for a loan without harming your credit file. Just because metro bank didn’t give you a loan there’s still a fair chance other lenders will.

Failing that can your girlfriend apply for a loan in her name? Or parents?

If all else fails then hopefully your be able to get a guarantour loan. I would normally say avoid them with a passion but in this situation it’s better than getting a default for 6 years. Just be sure you stick to the repayments and pay it back as soon as possible to save interest if there no other option.

In future if you go away for any long period of time change your registered address with your bank to your parents so they can open any letters from the bank with your permission and most importantly use online banking. I’m probably over obsessed but I check mine daily more often than not.