Claiming compensation for incorrect default

jules106

I have drafted the letter below, and made copies of all correspondence, be great to her any comments , thanks very much !!!

Although HFC have made me an offer, I feel this is inadequate. My reasons are, if, on my first writing to HFC, they admitted the default was incorrect, I could have obtained a standard mortgage product.


The offer they have made me is merely a calculation of the difference in interest rate. However, they have not taken into consideration, when my fixed rate is up, It is a real possibility I could end up loosing my house. The reasons are that, due to the current market, I will probably not be able to remortgage as I had a 100% mortgage for a 50% share of a shared ownership home. As a last resort, I could revert to the SVR, if this was with a main stream lender I would be able to manage financially as I am a single parent with only one income. As my mortgage is through a high risk lender (of which I was unfairly categorized as) the standard variable rate is significantly higher, I will not manage financially and possibly loose my home.

In order to avoid the above, I would like to move my mortgage now, so If I did have to revert to the SVR I would be able to manage financially. In order to do this I would need compensation for the following:

Early penalty fees to leave current mortgage: £6000
Solicitors fees to re-mortgage £800

In addition, as I had to go through a packager/high risk lender I incurred the following, additional fees:

Mortgage fees – from the lender £1000
Valuation fees – 400

I fully understand HFC are not responsible for the current economic situation, however they are accountable for the incorrect default and again, I go back to the point if, on my first writing to them they agreed to remove the default, things would be different. If it was correct and I made the choice to go ahead with an adverse mortgage product so be it, but, as it turns out It was not my mistake it was theirs.

degmwilliams_2

Hi there im in the same position as you are on here, i was just wondering what the outcome was and if you did go to the fos for help. What was the compensation you recieved in the end? Thanks David

Vuze

That forum member hasn't been active on the forum since April 2010 - you could try sending a private message but they may not know you have contacted them unless they have the settings set to email them.

charliemo39

I've recently found myself in a similar situation

I've had a default notice on my credit file for almost five years now and have just managed to get it removed.

I've even had an apolegetic letter from someone at HSBC who lodged the default explaining why the error happened.

Doesn't quite make up for the 6 or 7 other letters HSBC have sent me saying that the default was correct and they most definately would not be removing it.

It also doesn't make up for the high interest rates I've had to pay for credit and the inability to get a consolidation loan so I can pay off store cards and credit cards etc.

Surprise surprise as soon as the default has gone I've just applied for a consolidation loan and got it yipppeeee now where are thoose scissors, only joking I cut up the cards ages ago.

Anyway I'm v interested as to wether I can claim compensation for this so if any one has any experiance of similar cases and final outcomes that would be great.

Perhaps I should ask HSBC for an interest free consolidation loan I wonder what they'd say.. I also wonder if, even though they've removed the default, I'd pass their credit scoring.

optomistic1

I would like to know if anyone has had any success at getting compensation for this.
I was defaulted in 2008. I was unaware of it until 2010 when I registered with a credit agency to check my record. Suddenly the reason why I had been unable to get 0% deals on credit cards and my card interest rates had rocketed became clear.
I immediatley did what is suggested and contacted the credit card concerned. They initially argued it was correct until I produced a letter from 2008 from them assuring me that although I had had temporary difficulties they would not default me! Efforts were then made to correct my credit record. They did, and after one month without a default, it reappeared. This merry go round continued with letters of assurance that the problem was now fixed and then the default returning for 8 months. Finally they explained they had a fault in their programme and it is now fixed.
Like other members I recently applied for a 0% balance transfer and got one!
The only difference is no default.
I have accepted as part payment the £200 compensation but I like others feel I should have something for the inability to access credit deals at lower rates to maximize my debt reductions.
Look forward to hearing some good news.