HSBC - Default - 2 years later

letschangethis

Good afternoon,

I’m a silent viewer and the forum has helped me so much over the last three years!

I entered a DMP back in March of 2021 and all but one creditors had defaulted my accounts by august of 2021. 

HSBC where do I start the debt was for £6300 and reduced payments have been being payed via StepChange for 26 months and the debt is currently £4000. Every couple of months since entering a DMP I have rung and asked for the account to be defaulted. I had a demand back in June of 2021 but I didn’t receive a final demand until May of this year 2023 and the account has defaulted two years after reduced payments have been being made. 

Am I right in saying the default should of been added between 3 and 6 months after reduced payments had started being made?

I have spoken to HSBC and they wouldn’t budge with backdating the default and refused to let me speak to a manager, they logged a complaint so I can now speak to the  financial ombudsman. 

Any advice when making this complaint would be gratefully revived?

Thank you!

sourcrates

Make your complaint a formal written affair.

Much better chance of success.

Guidance states a default can be registered after between 3/6 missed contractual payments, reduced payments would likely count as an arrangement to pay, which is there argument presumably.

Its 50/50, you may get lucky, but recent FOS decisions have sided with creditors when an arrangement has been in place.

Best advice is to be contrite, say you are aware an arrangement to pay may stop an account defaulting, but if they could make an exception this time, and as a gesture of goodwill would they please backdate the default to March 2021.

See how it goes.

peteuk

In my experience although a default can be registered 3/6 missed contractural payments, some banks can keep you on short term payment plans without defaulting the account for months on end.  

Good luck with the complaint.

Nattyb_2

Just wondering how the original post got on with this?
This exactly happened to me and i was debating doing the same thing.

HSBC waited over two years after all my other defaults had been put on my account 

Rob5342

I had this trouble with Virgin. I stopped paying them in the end to try and get them to default me which they eventually did, 28 months after starting the DMP. I complained and asked them to backdate it but they were having none of it, and the FOS found in their favour. Thanks Stepchange's advice, my credit file will now be harmed for two years longer than it could have been.