how to take legal action against hsbc?

[noddy997]

Hello there am new here.

 

This year I tried buying a house and couldnt get a mortgage from ANYWHERE because of my credit file. In the end, I bought it from Equifax and it had a default of £216 by HSBC.

 

Ok, this default arised from a student bank account that I had with them which had its overdraft used and hadnt any money paid in for a while. In the end, they made me an offer that no one believes even today. "If you pay off 75% of the balance, we'll waive the remaining 25% off" - this is what HSBC wrote to me this time last year.

 

So yeah, I went and paid the remaining £600 odd pounds off, and thought they will cover the remaining £216 as they made the deal. I misplaced the "offer letter".

 

So I go back to HSBC, and they say "no such deal was made". At this point, I hadn't slept for a week or hardly ate, as i was stressed so much! I went into HSBC the final time, and spoke to the Manager this time. He spend 20minutes on the pc, and found the offer note on his system. I got him to take the default off and he did that within a matter of few days (was very kind of him, as the estate agents were sick of me as they thought I was playing games!). Also I got the manager to write me a letter in the branch saying how its their fault, and he agreed to this and wrote me the letter (which I now frame).

 

Ok the default is taken off now and I bought the house. It dont stop their, I still get various DCA's (debt collection agencies) contacting me since May this year asking for the remaining £216. When I tell them what happend, they go back to HSBC whom instruct different DCA's to contact me to "arrange" payment of the "outstanding" balance. I've had 3 dofferent DCA's since May.

 

I believe I have a case for prosecution as if I wasnt looking to buy a house this year I would have been screwed in the future as the default came on from December 2010 and lasts for 6 years as I believe! I might only be 23 (worst birthday ever!) but I wouldnt have been able to buy a house until 29! (2017!!)

 

My evidence is: the letter admitting fault and containing the offer details made to me, 2 copies of credit files 1 stating the "default" and 1 showing it being removed.

 

How can I prosecute them? Do I need a legal rep, and what kind of court would it be?

 

Any help and advice would be appreciated, thanks in advance! (Sorry for the essay, lol!)

 

Alot of companies think they can push their way around as 3g got back to me 3 years later asking for £35, went into their store got the notes off the system and it clearlly said I paid account in full. They backed off and gave me £10 as goodwill gesture when I showed them the evidence and threatened legal action! Its a complete joke!

[MARTIN3030]

Welcome to the site.

This can be done quite easily through the small claims system,and is not a complicated matter since from what you say the evidence is pretty damning.

How have these debt collectors been contacting you ?

Before any litigation they should be given the opportunity to properly compensate you and you will need to be getting something in response in writing.

[MARTIN3030]

Btw I have sent you a message.

[noddy997]

Welcome to the site.

This can be done quite easily through the small claims system,and is not a complicated matter since from what you say the evidence is pretty damning.

How have these debt collectors been contacting you ?

Before any litigation they should be given the opportunity to properly compensate you and you will need to be getting something in response in writing.

 

Sorry I dont understand the highlighted part? Do you mean I should give them the opportunity to compensate before legal action?

 

The DCA's have been doing it by writing. I contacted them via telephone obviously on the conning 0845 numbers unfortunately...

[citizenB]

Sorry I dont understand the highlighted part? Do you mean I should give them the opportunity to compensate before legal action?

 

The DCA's have been doing it by writing. I contacted them via telephone obviously on the conning 0845 numbers unfortunately...

 

Martin has advised that you need to complain to the DCA / Bank and give them the opportunity to properly compensate YOU if they dont, then you can proceed with issuing a claim against THEM.

[postggj]

did you have to pay a higher deposit etc because of this default with any creditor

[MARTIN3030]

As far as compensation is concerned,there are no fixed figures,but you could have a starting figure.

Usually the other side will demand that you mitigate any losses,but Courts are known to have awarded compensation in the absence of rafts of specific loss being given in detail.

It is accepted that adverse markers on a credit file dictate credit worthiness and almost always affect ability to get a mortgage,credit etc at rates which are available to those with a good credit report.

In many cases the biggest hurdles for people are getting together all the evidence and collating it,but you appear to have got much of this already.

It is very possible that the bank will offer something before you litigate and will not want to go to court over this.

If the amount being claimed is under 5k then this keeps it in small claims and limits exposure to their costs.

As most know,it is usual for banks to make a number of offers before you get what you want.

It may be that you have to issue a summons before they take you seriously and pay up.

You would be amazed at how many threaten to take banks to court but dont follow it through.

[noddy997]

did you have to pay a higher deposit etc because of this default with any creditor

 

Nope I didnt. Wherever I went they simply showed me the door! No one wanted to know me. Even for a 50% deposit and 50% loan no one still wanted to know me. You think they would with that much deposit but they dont. Because the credit file suggests "you wont pay them back".

 

So I had to have it removed and then went to my initial mortgage advisor and he sorted it really.

 

I nearly got scammed in the process of getting a mortgage thanks to HSBC. Obviously I had contacts lots and lots of lenders. A company I found online "simple mortgages" (something along them lines) said even with a default they could give me a mortgage. I knew it was a [problem] because the 20 other lenders I went to said with a default you cant get a mortgage simple as that. Simple mortgages said their lender was Natwest. They sent out a rep from a company called "quick docx" with all the "paper work" which was totally wrong had different t&c's from those discussed on the phone.

 

I showed my concerns to the rep who contacted Simple Mortgages whilst he was in my house, and I spoke to the chap on the phone and he was so forceful saying that I should sign the "contract" regardless of the dodgy t&c's. And that am being unfair to them because the rep is from 3rd party and they'd have to pay him to come out. I simply gave the chap on the phone a bollocking stating he's given me some dodgy [problem] deal as the t&c's where different.

 

The rep was kind hearted and suggested that I keep the paper work anyway and that if Simple Mortgages could get me this mortgage at Natwest that I should go to Natwest myself and get the deal directly from them. (The catch here what most people would fall for is: they'd think the company they going through can only get that deal from Natwest, and if you go direct to Natwest you wont get it. Wrong, why? The case here is, please dont get confused, I have a default, if Natwest will accept the default via Simple Mortgages they should be accepting it as a direct customer!!)

 

Went into Natwest and obviously they refused me over the default issue!

 

So a cockup from HSBC, could have not only got me into the standard 6 year default on my credit file but some other dodgy mishap with a dodgy company!

 

PS. I also have the documents obtained from Simple Mortgages, and other legit mortgage lenders/advisors I seen in the process to show how much time I wasted thanks to HSBC!

[noddy997]

Where do I start guys???

[martin2006]

As previously posted by MARTIN3030 and citizenB, you should be writing to the DCA to complain and also to HSBC to complain. You should also be asking for compensation for the distress this has caused you in trying to obtain a mortgage.

As far as the amount to claim is concerned, that depends on how much would satisfy you in these circumstances, but you must keep it sensible to reflect what you have been put through.

If you keep the figure below 5k, then any court claim, if it should come to that would be dealt with in the small claims court and you would not be left, potentially open to having to pay the other sides legal costs should you lose. Over 5k and you run that risk.

Any compensation should be claimed from HSBC. They have created the problem.

[noddy997]

Dont want to sound greedy but I want more than 5k. I was about to give up on that house, and would have left it for 6 years (till Dec 2016!) due to them.

 

Am looking at potentially 5 figures in compensation due to the above reason. Plus HSBC had time to take me off their system but they havnt done so am still receiving letters 4 months later from different DCA's. One chap who got conned in a similar situation by O2 was claiming for £100,000 in compo. Cant seem to find the news success story of his claim. When his proceedings began it was in the news but cant find any story on the outcome.

 

Its pointless writing to the DCA's it wasnt their problem. HSBC has instructed them so the DCA's are in no wrong here.

 

So who/where do I write to at HSBC?

[martin2006]

http://www.consumeractiongroup.co.uk/forum/showthread.php?74985-****HSBC-Contact-Information-****

 

Certainly not for me or anyone else to say how much compo you should go after but you must be aware that any claims over £5k will be allocated to either fast track or multi track and if you were to lose, you could end up having to pay the banks legal costs which could be far more than you are claiming.

Not trying to put you off, just making you aware.

There are others who know far more than i do about the court system and may be able to help you further.

[noddy997]

No dont worry, thanks for your advice.

 

Moreover, will legal aid not cover this?

[martin2006]

Legal aid is there for those who cannot afford legal representation. ie on benefits. If you have recently taken out a mortgage i presume you are in gainful employment and you would not qualify for it.

[noddy997]

But would it still pay for the other sides legal costs if I was to lose? I might be eligible for it as am a full time student at uni, unemployed at the moment. The deposit was only 20% of which half was from savings and the other half gifted to me.

[martin2006]

As you are unemployed, you may well qualfy although i don't know if your student status will affect this.

 

A quick phone call to your solicitor would clarify this.

[noddy997]

I dont have a solicitor mate. I cant seem to find any solicitors that deal with banks in Nottingham. I had trouble in June time and gave up about the whole case over this!

[noddy997]

Update:

 

I havnt done anything yet like many people... But my debts been passed on to Wescot who I told a while back that the debt being claimed is an error. They wrote back to me today saying its not in error and its correct as they have checked with "their client" Metropolitan Collection Services. So one debt collection agency is passing it over to another, this is a joke?

[citizenB]

Sorry, their client cannot be Metropolitan collections as they are inhouse collectors for HSBC !!

 

 

I doubt it is a joke, just pure incompetence.. which is only to be expected !!

[noddy997]

Bump !

 

I totally forgot about this and this site! I really need to find time to write and seek compensation its been like bloody 6 months when I joined here!! Could have sorted it by now lol.

 

I got the evidence under my bed just aint got the time to write to HSBC!

 

So I should write to them and copy the evidence I have?! And give them a time frame to respond within? Ideally 28 days?

[citizenB]

It all depends how you intend to approach them. Is this going to be an Official Complaint ?

 

Theoretically, they have 8 weeks to respond, if after which they either dont respond or do but not to your satisfaction then you can take your complaint to the FOS. Which could add a couple of years and a few grey hairs.

 

If you are confident enough of your position and they dont respond or to your satisfaction then you can set a time limit for their response then issue a claim against them.

 

Your choice.

[noddy997]

Well I thought Id write to them demanding for some compensation. IF they dont compensate to a mututal standard then I thought it was to go through court? I thought the FOS wont seek any compo?

[citizenB]

The FOS will only look at your complaint once you have given the bank time to resolve the issue - that would mean your making an official complaint to them and giving them 8 weeks to resolve or provide you with a Final response letter.

 

It is unlikely the FOS will request mega compensation.. so I guess it all depends really on what you consider "mutually satisfactory"

 

Have you looked at some of the finalised cases that have been posted on the FOS website ? That will show you the level of compensation they will ask the bank to offer, if they find in your favour.

[noddy997]

Do they have such finalised cases with HSBC ?

 

Ok this gets better. I have more news.

 

My relative owns a property, which I used to live in when I was a child so i dont think I wouild come up on some system and which has tenants in it (Polish ones). Basically I have letters from Wescot, and some solicitors they have instructed to collect the debt back.

 

It has gone from HSBC to Metropolitan Collection services. Then Wescot have wrote to me asking money for their "client" Metropolitan. Now Westcot instructed some solicitors. The solicitors have made an off for me to pay £129 to wipe off the £216. Which initially HSBC made me an offer for the 75% and waive the remaining 25% which is the "outstanding" £216.

 

This is pathetic and will go round in circles. I think I will start writing my letter(s) collate all evidence from tommorow evening or definately this weekend and post it on Monday morning to HSBC via next day special delivery.

 

This is initially HSBC's error who I think then have sold on the debt or instructed several organisations.

 

So here's the chain:

 

HSBC > Metropolitan > Wescot > Solicitors

 

Anyone else to add to the list?

[noddy997]

i cant seem to find any compensation figures on the fos site! please help