HSBC payment arrangement

Treguard

My partner has recently been made redundant, and so I'm currently covering all of the bills and expenses. I'd already set a payment arrangement with Capital One, and was informed that once my circumstances changed that the account could return to normal (including use of the card). HSBC have agreed an arrangement too, however they've said that I'll never be able to use the account again.

This seems quite unfair in what we hope is just a blip.

Just having a moan!!

eskbanker

Doesn't seem unfair to me to be honest - if your partner declares to a lender that he/she is no longer able to abide by the terms of the agreement (for whatever reason) then the lender is perfectly entitled to terminate it after recouping the debt. The fact that another lender has been more lenient is neither here nor there unfortunately....

If it's just a blip, was there no way of keeping up with minimum monthly repayments from the redundancy money?

foxy-stoat

Probably doing your partner a favour - get them to clear all their debts, budget and save for stuff rather than carrying credit card balances.

Treguard

Apologies. The cards are my own, but I'm unable to cover all of the payments as well as all bills and expenses. Very little money from the redundancy sadly.
It's a shame as I imagine she'll be back in work within the next month or two.

I did wonder would it have been better for my credit file to have late payments rather than a payment arrangement. I havent had to do an arrangement with the other two cards, as the minimum payments are affordable (not sure how that will impact credit file (I.e. seeing two cards kept in good order and another in an arrangement)

foxy-stoat

If you have an arrangement then maybe they do not register the payments as defaults only as late, until your back making the full minimums.

If its only going to be a few months, I would of done balance transfers every month, if you had the offers, to keep things ticking over rather than registering negatives on the credit file.

Register for Credit Karma, was Noodle, so you can see whats going on....forget the credit score, its the history you want to see.

Treguard

Thanks. Looking on credit karma, I can see that Capital One show:-

Novwmber - Green AR
December- Red AR with "1"

I phoned capital one, and they confirmed that payments had been made on time, and that they allow a day or two grace normally. I'll see what happens when Januarys payment shows

HSBC is just blank for November and December

abc.xyz

Different business models. One is a mainstream lender and the other is sub-prime that prefers customers with money problems.

Treguard

When I've cleared the balances on those other cards, I'm thinking it might be worth keeping the accounts open. Perhaps that would offset any negativity from HSBC? Just concerns me as my mortgage fixed rate is up in 18 months, and we planned to go on another two year fix rate, then borrow on the mortgage to get an extension. Hoping the little blip won't have scuppered that plan

Treguard

In terms of damage limitation, would I be best off staying with a payment arrangement with HSBC or just letting the account default?

I'd read that an arrangement stays on your file up to six years AFTER the account has been paid off