HSBC Default removal / Partial settlement?
missynod
Posts: 4 Newbie
Hi,
I'm new to all this so sorry if I waffle firstly!
Bit of back story, I got myself into some debt years ago and contacted Stepchange who arranged a DMP to all my debts, fast forward few years all paid off and complete.
However I am trying to apply for a mortgage now and HSBC have marked my credit report, they have placed a default (from July 2015) on the an old current account, this had an overdraft which was paid off as part of the DMP but they must have continued to add charges which I didnt check/was unaware of so once I thought the balance was paid I thought nothing of it until I received a letter a few months later stating there was a balance of £57 due, I immediately called them and paid this and apologised as I wasnt aware before then.
Secondly they have marked an HSBC credit card as partial settlement, the full balance that was owed on the card was paid off so I am not sure why it states partial ( unless they are referring to the loss of charges etc that would have been applied to the account) and this mark is only just over a year old (May 2017) so will also cause issues for any potential mortgage.
From anyones experience can I and what is the best way of getting this information amended/removed from my credit report?
Thanks in advance for your help x
I'm new to all this so sorry if I waffle firstly!
Bit of back story, I got myself into some debt years ago and contacted Stepchange who arranged a DMP to all my debts, fast forward few years all paid off and complete.
However I am trying to apply for a mortgage now and HSBC have marked my credit report, they have placed a default (from July 2015) on the an old current account, this had an overdraft which was paid off as part of the DMP but they must have continued to add charges which I didnt check/was unaware of so once I thought the balance was paid I thought nothing of it until I received a letter a few months later stating there was a balance of £57 due, I immediately called them and paid this and apologised as I wasnt aware before then.
Secondly they have marked an HSBC credit card as partial settlement, the full balance that was owed on the card was paid off so I am not sure why it states partial ( unless they are referring to the loss of charges etc that would have been applied to the account) and this mark is only just over a year old (May 2017) so will also cause issues for any potential mortgage.
From anyones experience can I and what is the best way of getting this information amended/removed from my credit report?
Thanks in advance for your help x
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Comments
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As long as it is settled, full or partial makes little difference, once it has defaulted.0
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Thanks for your reply, sorry I should have been clearer, it is only the current account from 2015 that has a default. I didnt receive a notice of default but I understand that many people dont so it is what it is I understand I can have a note added to my credit report explaining the default a bit more.
I just wondered if anyone had any experience of having a partial settlement amended or removed from their credit report and if so the best way of achieving that.
Thanks0 -
Thanks for your reply, sorry I should have been clearer, it is only the current account from 2015 that has a default. I didnt receive a notice of default but I understand that many people dont so it is what it is I understand I can have a note added to my credit report explaining the default a bit more.
I just wondered if anyone had any experience of having a partial settlement amended or removed from their credit report and if so the best way of achieving that.
Thanks
The notice is pretty meaningless and is pretty much only there to appease people who have defaulted. The fact is lenders will see a default and will be more reluctant to lend or less willing to offer favourable rates no matter what your justification is for the default. If it was applied unfairly, it wouldnt be there.
You shouldve had notice of a default being issued. This is a key part of the process and if the bank have failed in their obligations then this is something you can use to get a default removed. That said, they will know the rules and its very rare that lenders will not adhere to them. What typically happens is that people change their address without informing the bank and then get shocked when theyre unaware of things that have happened in their absence. Its very unlikely that they havent followed process and means its unlikley youll have any chance of getting the default removed.
Speak to the lender about the partial settlement. Its not uncommon for someone to pay whats on the statement to later find out that the statement is historic and as such has had interest applied. You might be able to get it corrected but that will depend on the reason as to why theyre viewing it as a partial settlement.0 -
Either way the account will still show as defaulted - they won't remove the marker and change the account as "all-cear".
And what would you add as the Notice of Correction?0
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