All the signs of another default coming..SOON

[FightThemAll]

My HSBC student credit card has a huge balance. It was meant to be paid off TWICE by a freind, who didnt pay it, so it ended up getting DD from my current account (which has reached the o/d limit) so to me it seemed to have been paid..Money was available, I spent it all and then a few days later the DD got rejected..

 

This happened TWICE, so I basically spent the full balance three times, i.e. credit card limit: £500, balance right now £1500!!!

 

I explained the situation told them I would be expecting to pay it off as soon as possible but I couldn't right now, and so they put me on payment arrangement, which is managable and I have been able to maintain regular payments on.

 

HOWEVER, I have just noticed that on my credit file, although I am making regular payments as they requested, I keep get late payment markers. Most recently, 4-4-4...

 

Last time something like this happened with T-Mobile I got a default out of nowhere and I cant afford for this to happen (from this thread).

 

How can I make them stop processing the data without trying to go down the re-claiming route. I don't want to **** them off either so they dont just ask me to pay the full balance or just default me outright...

 

One thing I can think of is at least to put the CRAs on notice..

 

HELP!

[FightThemAll]

Seriously, ur advice could be the difference between me getting another default or not.. Anyone,

[FightThemAll]

bump

[FightThemAll]

Anyone?

[FightThemAll]

Nothing at all....?

[SilverLining]

** WONDER WHY NO-ONE RESPONDED TO THIS THREAD IN 10 DAYS? ***

 

Hi

 

Lets get this right then...

 

1. you had a credit card with a £500 limit and spent it.

2. you then paid the whole balance with your bank account (offset the credit card balance kinda thing)

3. you then spent the credit card balance again, knowing you didn't have the funds in your bank account to pay it - twice!

4. the direct debits bounced thus leaving you £500 o/d plus a £1500 credit card bill?

 

If that's the case then to be honest there isn't a lot you can do because in essence you did deliberately spend money you knew you couldn't pay back - kinda hard to deny that you knew the direct debit would be paid - either way you'd still have ended up owing £2000 when really you could only borrow £1000...

 

However, all is not lost - just ring HSBC and explain you screwed up - remember next time you're in branch, try and see the score in the bottom right of the screen on customer profile page - if you have a high behavioural score (over 50) then i'd suggest to the bank that you apply for a small loan and pay the other debt off with the loan, ultimately this will have the reverse effect as HSBC primarily use their internal behaviour score for lending decisions to existing customers. This is more important to keep, assuming you're happy with HSBC. Maybe even ask them what your behaviour score is - if they dont tell you it's because it'd bad! It goes from 1-100 with 100 being the best and 1 being really bad! My score is 72 which means I get offered all sorts but dont always take. This score changes each time you make a transaction so it is not exhaustive nor is it foolproof!

 

See here for full details: HSBC Behaviour score - MoneySavingExpert.com Forums

 

Its unlikely HSBC will default you unless you simply ignore them - i'd make appointment with your branch and sort this out - even go onto managed payment scheme or something with them?

 

Hope the above helps - let us know how you get on...

Edited February 1, 2009 by SilverLining

[FightThemAll]

I was a little confused why this thread hadnt got any responses either SilverLining...Thanks for your response..

 

My friend owed me some money and he was meant to clear the balance so when I have available funds I thought he did. the second time I thought the DD would have been cancelled so when it was paid again I thought he definatley paid it...

 

It was silly of me not to check though..

 

I know that my behavioural score is rubbish because they wouldn't increase my o/d by £50 to cover the amount I was over the limit by before...

 

I have made an agreement with them, but this is why I am so concerned...My credit report still says payments are being made late/missed even though I am paying the agreed amount each month....