HSBC, Managed Loan, Cabot, Credit Rating - advice sought

adk79

Dear all,


I am new here and was looking for some advice on an issue I have with HSBC (and now Cabot). Let me explain.


For the last two years and a half years I have succesfully been paying my HSBC managed loan (value of approx. £4,200 when issued in 2016) without issue. However, in June of this year I was late with a payment by six days. This is completely my fault, I put the money over to my HSBC personal account (which the DD came out of) slightly late. As such, according to HSBC I missed ONE payment - totally understandable. However, given that I had always paid the DD on time without issue over the past two years and that I pay money directly into my personal account EVERY month - and still do pay monies into this acount to cover the direct debit - I did not notice this until August, as I seldom used the account (there was no need - it was only used for the DD). When it is to be further regretted that during the past two years I have moved house and hadn't updated HSBC with my new address, I did not realise I had put myself in this position, and HSBC assure me that they sent a letter informing me of this.



Even so, ever since the day I discovered this issue I have done everything in my power to remedy it. I have spoken to HSBC on numerous occasions, all to avail. As such my account was classed as a default - despite me speaking to HSBC in August. Today I received a notice that the debt (which has an outstanding balance of £3,022) has been sold to Cabot for collection.



My issues however are these:


Firstly, I missed only ONE payment. The money WAS there six days later. HSBC never once tried to take the money in the future.



Secondly, despite their claims that they could not contact me during the period between June and August, in September this year I received an email from HSBC telling me I had a note on my account. This related to a new direct debit card they had sent me. My email address has never ever been changed in all my years as a HSBC customer (over 20 years). How is it that they could email me but didn't and now I'm where I am?



Thirdly, HSBC can see from my account activity that since that single missed payment I have always successfully made payments into my personal account. There is currently £250 in the account waiting to be deducted from the debt.


Finally, I have NO issue whatsoever paying the debt and had, over the past two years paid off over £1,000 towards it. I would have - and still will - continue to pay this off.



Despite all of this, and my apparent failure in raising a complaint over the manner in which this case has been handled - on which HSBC have still not communicated their decision of my complaint to me, despite the fact that today, as I say, I received a letter from HSBC with one from CABOT telling me the debt has been sold - I am very angry at the outcome.



Primarily because I'd like to know whether what HSBC have done is legitimate? In particular, is missing ONE payment sufficient enough of reason to declare a default? PLus, WHY didn't HSBC ever try to take the money again? It was there and always has been since.



I ask these questions for two important reasons: i) I have a good credit rating of 453 and my partner and I are buying a house, which I fear will be scuppered by a default notice, as it will kill my credit rating (we have a mortgage in principle at present BUT if we are re-tested after this debacle we shall doubtless fail); and ii), it is a matter of principle that HSBC think they can get away with this despite their obvious ability to communicate with me when it suited them.



Now I'm not deluded - I'm more than happy to take my share of criticism over my lack of management over my finances in this instance - the missed payment, my failure to update my address - but I honestly feel that missing a single payment in two and a half years and a failure of HSBC to try and take the money out of my account ever again is not sufficient enough of a reason to leave me where I am today. This, as everyone knows on this forum, is a very serious issue.



In short, I would very much apprciate any advice anyone might have on the matter.


Best,


A

DCFC79

Your credit rating is only seen by yourself, lenders etc see your history, don't worry about the score.


Put a complaint in then.

adk79

DCFC79. Many thanks for your reply. I have already made a complaint to HSBC, I’m awaiting the outcome - but this hasn’t stopped them selling the debt, so I’m hardly hopeful.

Did you mean someone else?

[Deleted User]

They don’t contact people by email they send letters.

The account had a miss payment on a payment plan and it has been recorded and marked accordingly.

Usually when a payment is missed in a payment plan you contact them to reinstate a new plan

sourcrates

Hi,

It does seem a tad strange they would default your account and sell on the debt just for one missed payment.
FCA guidebook states a default should only be issued after between 1-3 missed payments.

See what the outcome of your complaint is, and escalate to the FOS if your still not happy.