Failure of HSBC bank to report data to credit reference agencies.

Tally125

I just wondered if anyone else has had a similar experience and if so how they have resolved things?  I have recently applied for a loan with my bank, HSBC, which was turned down.  When I asked why,  HSBC referred me to Experian credit reference agency. On reviewing my credit report, I realised it didn't have my main HSBC  bank account and HSBC credit card details, so I went back to HSBC, who advised that it was because they hadn't been sharing my data for 20 years!  They advised this was because I hadn't changed anything with my account during this period of time, which was incorrect as I had taken out 2x professional studies loans, had a credit card, changed my name when I got married, changed address and upgraded the account over this time. I had originally opened the account as a student. I work full time as a doctor, with a good salary and would be in a good position to repay a loan.  When I complained to HSBC, they advised me that there was no point applying for a loan for at least 3 months, due to the reporting time needed to the credit reference agencies and that in any case there was no mechanism for providing the historic data.  I understand that they can't influence Experian but it's surely within their gift to loan me money given they own all the requisite data and know I have never missed a credit card payment or failed to repay a loan!

I feel frustrated and angry as this has had a negative impact on our family as we've just bought a house which we need to renovate and HSBC had previous informed me I would have no issues obtaining a loan. I feel that this may be happening to others without them knowing about it?  Grateful for any advice you can provide as HSBC don't appear to be interested in solving my problem.

Carl2510

Think your barking up the wrong tree if you think a bank is going to give you a loan as a gift if only banks were that nice!

Carl2510

Maybe check all the CRA’s see if they have got any of your info with your bank.

Yahoo_Mail

From the sounds of it, your accounts predate the Data Protection Act. Any accounts predating this would not be reported to the CRAs unless you specifically ask them to.  This is the same for all banks, as far as I'm aware.

I'm sure there is a process for getting this data reported (and all historical data) but you'll possibly need to escalate to get it in front of someone who knows what to do, it is likely not something that most employees would have ever dealt with before, to be honest.

Frankly though, if HSBC is who you've always banked with and they don't want to give you a loan, it has little to do with what's on your credit files and everything to do with how they've scored you internally.  Obviously, you have no right to a loan, so other than getting that account data reported and then applying elsewhere, there isn't much you can do.

cymruchris

Even today - not all financial accounts are reported to all CRA's. There are some that only report to one. There may be other reasons why you didn't qualify for a loan. Do you have any existing debt on your files? Credit cards with balances? Car loans? Personal loans? You mentioned you've just bought a new house - I guess there's a mortgage payment there to be made each month? It may simply be affordability - what they 'told you' a few months ago might have changed overnight. With the pandemic as it is, lending criteria across the board have been tightened - so there's a multitude of reasons as to why you might have been declined.

Thrugelmir

Tally125 said:

 HSBC had previous informed me I would have no issues obtaining a loan.

I'd be very surprised if that was the case. Banks never commit to such things. The fact you've recently applied for a mortgage is more likely to the negative factor as far as HSBC are concerned. 

PixelPound

Had they previously advised you about the loan, prior to getting the mortgage? As stated a recent mortgage application will have a far bigger impact on any loan application than whether your current account is reported. Was the mortgage near the upper limit of what you could get - affordability would be the issue.
If you have had it 20+ years, again as stated likely to be pre DPA so won't be reported - getting additional products (like the loans) won't affect that. 

Tally125

Thanks for all the responses - sorry for the delay in responding but work is busy and somewhat challenging at the moment.  I'll try to answer all the points you've raised above:
1. Aside from the mortgage my husband and I have no other debt in any form.
2. Since obtaining the mortgage approximately 8 months ago we've been able to save just over twice the monthly mortgage payment amount each month - I don't see how affordability can be the issue.  My husband has subsequently obtained a loan for approximately twice the amount I was trying to borrow using our household affordability information. 
3. HSBC have stated that the credit check failure was the reason I was refused the loan.  
4. The bank account was opened pre DPA but my HSBC credit card and HSBC professional loans weren't. I've been loyal to HSBC / too busy balancing a family and career to shop around; it now seems I'm being penalised for this.  I will certainly be moving my bank account after the awful customer service I received from HSBC.  It took around 2 weeks of bouncing between Experian and HSBC trying to resolve the issue before HSBC admitted they weren't sharing my data with Experian. It's been very hard to get a straight answer from HSBC but they did admit their poor customer service and credit my account £50 as compensation.
5. I received a 'you have been pre-approved for a loan' letter from HSBC.  I then called customer services to discuss the loan, pre-application, and was told if I upgraded my account to a premier account once I could borrow more.  I didn't upgrade my account but I was left with the impression that borrowing wouldn't be an issue.

My major source of frustration is the poor communication, mixed messages and 'computer says no' attitude I have received from HSBC; not a bank I would recommend!

Tally125

Sorry - just to add the conversation surrounding the loan was approximately 3 months after we'd taken out the mortgage.

adamp87

Tally125 said:

Thanks for all the responses - sorry for the delay in responding but work is busy and somewhat challenging at the moment.  I'll try to answer all the points you've raised above:
1. Aside from the mortgage my husband and I have no other debt in any form.
2. Since obtaining the mortgage approximately 8 months ago we've been able to save just over twice the monthly mortgage payment amount each month - I don't see how affordability can be the issue.  My husband has subsequently obtained a loan for approximately twice the amount I was trying to borrow using our household affordability information. 
3. HSBC have stated that the credit check failure was the reason I was refused the loan.  
4. The bank account was opened pre DPA but my HSBC credit card and HSBC professional loans weren't. I've been loyal to HSBC / too busy balancing a family and career to shop around; it now seems I'm being penalised for this.  I will certainly be moving my bank account after the awful customer service I received from HSBC.  It took around 2 weeks of bouncing between Experian and HSBC trying to resolve the issue before HSBC admitted they weren't sharing my data with Experian. It's been very hard to get a straight answer from HSBC but they did admit their poor customer service and credit my account £50 as compensation.
5. I received a 'you have been pre-approved for a loan' letter from HSBC.  I then called customer services to discuss the loan, pre-application, and was told if I upgraded my account to a premier account once I could borrow more.  I didn't upgrade my account but I was left with the impression that borrowing wouldn't be an issue.

My major source of frustration is the poor communication, mixed messages and 'computer says no' attitude I have received from HSBC; not a bank I would recommend!

Did you run an eligibility check with HSBC before applying?

I know you mention you received a letter and I don’t think ‘pre-approved’ should be allowed as a marketing tactic - but there was still probably something in the letter noting it was subject to checks unfortunately.

Sadly just because your husband was approved elsewhere doesn’t mean you will be. 

They are notoriously picky if you read the forum so I’d just shop elsewhere for a loan if it’s needed. It seems internally along with the Experian report you just aren’t what they are looking for in a customer at the moment.

By all means you can write an appeal ask them to look again it does happen. 

You won’t really get a reply to why - the computer says no argument is pretty standard 

Yahoo_Mail

Tally125 said:

3. HSBC have stated that the credit check failure was the reason I was refused the loan.  

If that's the case then there is something on there from someone other than HSBC that's causing it.  It's nothing to do wth HSBC not reporting their own accounts to the CRAs. But I suspect you're been fobbed off with the generic "check your credit files" response.