HSBC Current Account Default

[Scrappy01]

Can anyone advised on if they have experienced this before and what they think I should do.....

 

I had a current account with an overdraft and a loan with HSBC back in 2002. Anyway I got in to difficulties and they passed what I assumed was the loan to MCS.

 

I found I had a default on my Equifax credit file for the current account, but I know the amount showing on my credit file is way more than any overdraft limit I ever went up to etc as I have all my statements.

 

I sent a CCA requesting the documents for the current account, agreement and default notice etc. What I got back was the information for the loan account.

 

What I found is that the account MCS hold is the current account and my assumptions have lead me to think that HSBC placed the amount owed on the loan in to the current account and then passed it over to MCS. The amount showing on my credit file as a current account is what I owe MCS at the moment but it states the account is closed and the last updated date is shown as in 2002.

 

I feel they've done this as for a current account no default notice is required is it?

 

I've done a letter asking for the information for the current account again. But I don't know how to handle the whole thing, I've spent so long thinking about it my head is spinning. Can anyone advise me?

[Hopeful1]

I'm not surprised your head is spinning! I would send a S.A.R to request all the information HSBC hold on you.

 

Who did you send the CCA to?

 

I would write to advise MCS that the account is currently in dispute and you are corresponding directly with HSBC. Don't alert anyone to any of the errors until you have all the relevant docs.

 

Good luck! Keep posting your progress

[Scrappy01]

Hi Hopeful1

 

I sent the CCA to HSBC because I know that MCS are just in house collections for HSBC.

 

I have written another letter asking for the CCA information for the current account, like I asked in the first place.

 

I find it really annoying that they just moved the money round without informing me. It makes things look really confused on my credit file.

 

If I place the account in dispute should I still pay them? I have been paying them for years but I just want the default off my files as I know they never sent me a default notice regarding the current account. I just can't see them doing anything whilst I still carry on paying every month as I experienced this with Cabot for a Citi debt.

 

Also I did the SAR for IF and Citi for charges. Niether of them ever sent me everything. IF only sent me statements as did Citi, which really annoys me when you have to pay £10. I may resort to the SAR if my next letter doesn't do any good but then I actually have all my statements. Just missing default notices, applications and t's & c's.

[42man]

This is EXACTLY what has happened to me....had a business account, and a business Credit Card......it was sent to Metropolitan Collections who I CCA'd they said it didn't come under the CCA regulations (It actually did and I have hard evidence to show that HSBC transferred the balance from the Credit Card to the bank account without my knowledge) Are they trying to make unenforceable debts enforceable ??....Are they trying to hide the fact that because they don't have a CCA then they will get in trouble with anti money laundering laws ?? This is now with DG solicitors, part of the same bunch (HSBC and Metropolitan) I have requested that they send my CCA !!! watching this thread !!!

[Hopeful1]

It is often in bank t and cs that they can offset accounts against each other.

 

I am fairly sure that the bank should have written to inform you of this. This info should then be supplied under the CCA instead of a formal credit agreement.

 

I would wait until you have all the S.A.R info before you decide what to do about payments. If charges have contributed to amount that has been defaulted this will aid your argument in its removal. Also, if you can ascertain that charges were added to the loan account you can reclaim these straight away unlike bank charges.

 

I believe in being well prepared before engaging in battle these days! This is just a personal opinion though.

 

If the info is not being supplied correctly and you have complained to the company, i would look to make a complaint to Trading Standards.

[Scrappy01]

Hi 42man. If you had an overdraft on the Current Account then it does come under the CCA regulations. Read the Guidelines to Consumer Credit Act post on here. Its quite long but very very useful. But I'll keep posting so as to let you know how I get on.

[Scrappy01]

Hopeful1... I don't have the t and c's, they didn't send these. I'm requesting them in my reply. I'll see what they say..... although I'm sure I'll get the ones as of now!!!!! Theres no charges on the loan but there are on the Current Account, but I've left it too late to claim due to the ruling.

[Hopeful1]

Hopeful1... I don't have the t and c's, they didn't send these. I'm requesting them in my reply. I'll see what they say..... although I'm sure I'll get the ones as of now!!!!! Theres no charges on the loan but there are on the Current Account, but I've left it too late to claim due to the ruling.

 

 

Hi AP. I was just wondering if you've had any progress. I also wanted to add, that you should still put your claim for charges in anyway, as they will be held in a 'queue'. It also adds to the account in dispute argument!

 

Hope you're well

[Scrappy01]

Hi AP. I was just wondering if you've had any progress. I also wanted to add, that you should still put your claim for charges in anyway, as they will be held in a 'queue'. It also adds to the account in dispute argument!

 

Hope you're well

 

Hi Hopeful1

 

Not heard a sausage...... No suprises there though. Gonna give them a little while longer (but not too long) as I'm busy with other claims and bits right now. I'll keep posting when I hear anything though.....

[Scrappy01]

Hi

 

Had a reply RE my HSBC accounts. They say that for admin purposes the loan is "linked" to the main account, in my case the current accout.

 

No mention of the CCA for the current account that I sent a £1.00 postal order for and no explaination for the default marker on my file.

 

 

I'm still paying them because the sent me what looks to me like an enforceable agreement but the T&C's were missing but they say they are requesting the T&C's from my branch where I signed the agreement. Does this mean they have not complied with my CCA?

 

They also say they only have to hold copies of letters for 2 years. How true is this?

[Hopeful1]

When they say they only hold letters, are they referring to the default notice? As far as i am aware,they should keep copies of such documentation for at least 6 years.

 

Having re-read your thread, i am also fairly sure that a default notice should be issued regardless of whether it's a bank account or not.

 

I am going to PM Paul your thread link, to ask if he can clarify.

 

[Scrappy01]

When they say they only hold letters, are they referring to the default notice? As far as i am aware,they should keep copies of such documentation for at least 6 years.

 

Having re-read your thread, i am also fairly sure that a default notice should be issued regardless of whether it's a bank account or not.

 

I am going to PM Paul your thread link, to ask if he can clarify.

 

 

Hi Hopeful1

 

Yes its the default notice they are refering to. They say they only have to keep such items for 2 years.

 

Also I got the T&C's today. No mention of them being able to move debt from one account to another, only credit. In fact there is less that half a page of T&C's!

 

Gonna pen another letter to them asking them why they see fit to default a current account without sending me a default notice. They have totally evaded answering my questions so far and also my CCA for the current account.

 

Its so confusing, I find it hard to put across my point to them!!!!!!! I don't think it would be sensible to stop paying as they sent me CCA docs for loan which was moved in to the current account. What do you think???

[pt2537]

Hey Hopeful1

 

sorry but ive been busy, i will have a look through the thread tomorrow if thats ok and see what i can offer in the way of advice

 

regards

paul

[andabar79]

how do i start a new thread for an Egg default guys?

[Hopeful1]

Hey Hopeful1

 

sorry but ive been busy, i will have a look through the thread tomorrow if thats ok and see what i can offer in the way of advice

 

regards

paul

 

Cheers ears!

 

how do i start a new thread for an Egg default guys?

 

Click on this link:

http://www.consumeractiongroup.co.uk/forum/newthread.php?do=newthread&f=89

[pt2537]

well firstly they are talking nonsense with regards to the Default notice and only keeping it for 2 years.

 

never heard so much nonsense. they have to retain the documents under money laundering regs for starters

 

also they have to retain it should they wish to take legal action to recover funds under a regulated agreement

 

i wouldnt withhold payment yet,

 

can i confirm if i am reading this correct.

 

you had a loan, they lumped it into your current account to avoid regulation under the CCA ? is that about the size of it

[Scrappy01]

well firstly they are talking nonsense with regards to the Default notice and only keeping it for 2 years.

 

never heard so much nonsense. they have to retain the documents under money laundering regs for starters

 

also they have to retain it should they wish to take legal action to recover funds under a regulated agreement

 

i wouldnt withhold payment yet,

 

can i confirm if i am reading this correct.

 

you had a loan, they lumped it into your current account to avoid regulation under the CCA ? is that about the size of it

 

Yes you are reading correct. They stuck the loan in the current account and then defaulted me on the current account. I had an overdraft on the current account though, although it was only a very small one, so would it not be covered by the CCA? I've sent a CCA request for the current account but had nothing back, they sent the loan paperwork instead which has a different account number.

 

I did think I'd read somewhere else on here about the anti fraud regs. Do you have anything that would point me to the regulations?

[pt2537]

well quite simply they CANNOT DO THIS,

 

they should supply you with the details for the Loan and also should supply you with the details of the overdraft

 

 

talk about trying to pull the wool over your eyes

 

any default must be accurate, now if the default was a mixture of both then its not accurate,

 

i think your refering to the money laundering regulations relating to document retention

Home - Statute Law Database if you type in money laundering on that website it will take you to the regs

 

regards

paul

[Scrappy01]

Thanks Paul. I'll have a look at the regs. I'm also going to check my paper work again......!

[Hopeful1]

Hurrah for Paul!!

 

I had confused myself with some of the details in your posts, AP, so i apologise for that. Paul has clarified things very simply in 2 posts!! Now you know why i contacted him!!

[Scrappy01]

Hi Paul

 

I saw this in your thread PT2537's CCA request against Littlewoods

 

To register information with a credit reference agency, you must have written consent from the customer to collate and share such information. This consent is given in the form of a signed credit agreement, so until you produce such an agreement, you may not do this.

 

Can you point me to where it states this in the Data Protection Act or the CCA?

 

 

This is for another case I have against Simply Be. A bit similar to your case. But they are saying that my consent to process my details was given when I requested a catalogue and signed up for an account on the Internet. Obviously I wouldn't have signed anything at this point. They can't provide a signed credit agreement (not that they will admit it) just one with my current address on which I didn't live at when I signed up for the account.

[42man]

Bumping this one as i'd be keen to see this too !!

[pt2537]

ok bear with me and i will dig out the DPA and refresh my memory on it

[pt2537]

SCHEDULE 2

 

CONDITIONS RELEVANT FOR PURPOSES OF THE FIRST PRINCIPLE: PROCESSING OF ANY PERSONAL DATA

Section 4(3)

1

The data subject has given his consent to the processing.

2

The processing is necessary--

(a) for the performance of a contract to which the data subject is a party, or

(b) for the taking of steps at the request of the data subject with a view to entering into a contract.

3

The processing is necessary for compliance with any legal obligation to which the data controller is subject, other than an

obligation imposed by contract.

4

The processing is necessary in order to protect the vital interests of the data subject.

5

The processing is necessary--

(a) for the administration of justice,

[(aa) for the exercise of any functions of either House of Parliament,]

(b) for the exercise of any functions conferred on any person by or under any enactment,

© for the exercise of any functions of the Crown, a Minister of the Crown or a government department, or

(d) for the exercise of any other functions of a public nature exercised in the public interest by any person.

 

6

(1) The processing is necessary for the purposes of legitimate interests pursued by the data controller or by the third

party or parties to whom the data are disclosed, except where the processing is unwarranted in any particular case by

reason of prejudice to the rights and freedoms or legitimate interests of the data subject.

 

(2) The [secretary of State] may by order specify particular circumstances in which this condition is, or is not, to be

taken to be satisfied.

 

there we go

[Scrappy01]

I could be being dumb here but it doesn't say how they get the consent. Whether it has to be signed or if it can be by electronic means.