HSBC Issued a Default 7.5 years after last statement issued?

[K12kwd]

Hi All, long time reader 1st time poster! Please be gentle! Not sure if posting this in the right place but seemed like a good place!

 

I have a situation, basically when i was 18 i took out a Credit Card with HSBC, in 2005 i got behind in payments and my wonderful mother took out a loan, cleared everything and i paid her back. She paid off my Hsbc credit card among many other items. I have never to this date received any further correspondence from HSBC since the issue of their last statement in February 2005.

 

Imagine my surprise when i check my credit file (which i do monthly without fail) in January 2013 to see an old HSBC account ending in my old credit card number showing up on equifax at my old address (i moved in 2009) as settled in september 2012 with green markers saying payments have been made on time since september to now. I contacted HSBC through Equifax and they have confirmed according to their records, it is correct.

 

I then checked with CallCredit and noticed that the same account is marked with a Satisfied Default dated 31st August 2012 in the value of £0.00? Can they even default you on a zero balance?!

 

I sent off a SAR to them on 27 March, received a response on 10th May suggesting that the SAR request was not necessary, enclosing a copy of the original agreement dated 2002, but stating that the last statement was issued in February 2005 and they no longer have the records, they confirmed they had destroyed my cheque and if i still wanted a SAR to send the request again to a different address.

 

I sent that off recorded delivery yesterday as i don't think they are allowed to do this but could do with some advice. I did not notify them of my move as i had received no correspondence between feb '05 until I moved in '09?

 

When I spoke to them in January trying to investigate, i notified them of my current address. However the default which has now showed up as registered in august 2012 appears to be registered at my current address? They advised then that the debt had been closed and sent to a debt collection agency, who i foolishly rang but they confirmed had no record of me on file... Which would make sense on a default of £0!

 

Any ideas? I was 12 months away from the last default coming off my file. Now it saying there will be one there till 2018. I have paid all of the debts i was aware of in full, not settlements as I felt obliged to given that I racked them up. But this one has hit me like a ton of bricks out of the blue

 

Kirk

Edited May 15, 2013 by K12kwd

[K12kwd]

Ok so I've had my DSAR back today, it makes zero sense! They have no transaction data as last statement was issued 15/02/2005 all it says is opened 07/06/2002, last act 02/02/2005, last stmt 15/02/2005 closed 02/02/2011 (which i think is wrong!)

 

What do i do now? Its still showing as open on equifax/experian and receiving payments and closed with a default dated 31/08/2012 in CallCredit?

 

Cant even find reference to a default anywhere?

 

Stuck

[andy1886]

Hi Kirk,

 

I'm certainly not an expert on this but I've made a complaint to the ICO (Information Commissioners Office) based on their 'Technical Guidance on Defaults' (see link below).

 

This states that a default should be registered within 6 months of your failure to keep to your agreed payments (on the basis that the relationship has broken down with the lender). So if you didn't make payments after Feb 2005 then they should have defaulted you by August 2005 latest. Even if you paid off the debt later the default should still be registered no later than six months after you originally broke the agreement.

 

Here is a copy of item 11, page 6 of the guidance:

 

Time framework

Although there will be some flexibility in the definition of a breakdown, we believe there should be general rules for the minimum period of arrears which should exist before a default can be filed. Equally there should be a maximum period after which, if anything is to be recorded with a credit reference agency, a default must be filed. The following are in line with the practices currently adopted by most lenders.

　

 Accounts should not be routinely filed as being in default where full payments or those due under a rescheduled agreement are fewer than three consecutive months in arrears.

　

 Accounts should normally be filed as being in default where those payments due have not been received for six months.

 

I would make a complaint to the ICO outlining your case on the basis that they have failed to comply with the technical guidance. The ICO are who you complain to about the data supplied to credit agencies including default entries. Check out the link below and quote the bit that explains when defaults should be issued. You have to complain to the lender first and ask them to correct the entry (i.e. remove the default in 2012). If they refuse send all the correspondance to the ICO with a completed complaint form.

 

Here is a link to the technical guidance:

 

http://www.ico.org.uk/~/media/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx

 

Hope that helps.

 

Andy