6 months missed payments, no correspondence since June. Moocroft contacted- HSBC Debt

PanAction25

Moocroft  said both HSBC accounts were defaulted in July, but no default is showing on my credit file yet. 

sourcrates

PanAction25 said:

Moocroft  said both HSBC accounts were defaulted in July, but no default is showing on my credit file yet. 

A credit account defaulting, and a default appearing on your credit file, are two very separate events completely.

PanAction25

Thanks for the clarification @s@sourcrates . Just to note—Microsoft was specific that HSBC has reported default on account.  

Anyways, I’ve received notifications from ClearScore and Credit Karma confirming that HSBC has registered a default against my account.HSBC’s letter states that Moorcroft will be taking responsibility for the administration of my account, and I’ve also received a letter from Moorcroft confirming that HSBC has passed my account details to them to act as a collection agent.

Is the recommendation still not to engage with Moorcroft at this stage, and instead wait until the debt is sold and I’m contacted by the purchasing company?

When Moocroft called 3 days ago, I also mentioned to them that I have raised complaint with financial Ombudsman so can’t engage them so they said they would go back to HSBC. 

sourcrates

As long as its defaulted all interest will have stopped and you will have a clear 6 year window till the whole lot drops off your credit file, so if you want to go ahead and pay it down, that`s up to you.

PanAction25

@sourcrates - thanks for the clarification. One more thing as the account is now showing on my credit file as defaulted, what would happen if I start payment with Moocroft who is just acting as agent for HSBC but has not purchased the debt. Or what’s the implications? 

Does it mean HSBC is likely to sell the debt further down line whether I set up payment with Moocroft or not. 

sourcrates

PanAction25 said:

@sourcrates - thanks for the clarification. One more thing as the account is now showing on my credit file as defaulted, what would happen if I start payment with Moorcroft who is just acting as agent for HSBC but has not purchased the debt. Or what’s the implications? 

Does it mean HSBC is likely to sell the debt further down line whether I set up payment with Moorcroft or not. 

No implications whatsoever, you simply reduce the amount you owe with every payment.

HSBC might be quite happy to let Moorcroft deal with matters, there is no way of knowing their future plans.

PanAction25

sourcrates said:

PanAction25 said:

@sourcrates - thanks for the clarification. One more thing as the account is now showing on my credit file as defaulted, what would happen if I start payment with Moorcroft who is just acting as agent for HSBC but has not purchased the debt. Or what’s the implications? 

Does it mean HSBC is likely to sell the debt further down line whether I set up payment with Moorcroft or not. 

No implications whatsoever, you simply reduce the amount you owe with every payment.

HSBC might be quite happy to let Moorcroft deal with matters, there is no way of knowing their future plans.

Many thanks. I have now raised affordability complaint to HSBC and the view to escalating it to the FOS if HSBC don’t uphold my complaint.