HSBC default overdraft

[Sarrahk]

Hi there, I am back on here for advice after long absence.. The cag forum was fab years ago helping me with the thorn in my side of HSBC!! I left Hsbc around 2009/2010. I had number of debt woes but with help and consumer credit counselling service have been solvent for a number of years now..

 

However I recently tho obtained my credit file prior to making a mortgage application, only to find a rogue default placed by HSBC! Given passage of time and various address moves I have lost all my old paperwork including account numbers.

 

After 1.5 hrs yesterday and couple of cross letters this week I have finally got to bottom of this but need advice what to do next..

 

In short, on October 2009 HSBC said they were removing overdraft of £830 in 30days. I had to repay in full or give repayment proposals. It seems by 29th October 2009 I paid £150 and agreed repayment with their collections team at rate of £100 per month. Sadly it looks like I must have agreed this over phone as no apparent paper trail. Hsbc confirm however I continued to make repayments at this rate for next 5 months. However they decided to issue a "final demand" letter in March 2009, seemingly ignoring the repayment plan and giving me 18 days to respond!! THANKFULLY there IS a paper trail of my response WITHIN the 18 days, where essentially I confirm my payment plan in place and that I have not been told it's unacceptable! I continue to make repayments.. By this stage there is only approx £300 of original debt left! HSBC never respond to my last letter which they confirmed.

 

Instead, they pass this to metropolitan in April 2010 and and marked me as "default" to credit agencies. They appear to have completely ignored the repayment plan put in place with both their own collections team at outset and indeed ignored my letter outlining the plan in response to their final demand. All of which seems grossly unfair!

 

Incidentally I satisfied the account with metropolitan who have marked it satisfied by December 2010

 

HSBC have said they have raised a complaint and will "investigate" ... I don't trust that will be much good. Is there Anything else anyone suggests I do? I am desperate for all the old paperwork as I have none of it, I am very stressed as the default is a bar to my mortgage app. I am already teeing up ombudsman and information commissioner complaints and have marked disputes with experian etc

 

All ideas welcome!!

Edited November 3, 2013 by Sarrahk

[Sarrahk]

I should add original overdraft £830 not &130! Typo sorry!! Tired and stressed!!

[ncf355]

Hi

 

Unfortunately, the original overdraft agreement would probably state they were entitled to ask for repayment on demand

 

This being the case, they were entitled to enter a default as you failed to pay the full balance when they withdrew the overdraft with 30 days notice

 

Even if you had the £100 a month agreement in writing, I doubt this would prevent them being able to register the default

 

The only possible recourse here is to ask them for a copy of the original agreement that they claim gave them the right to withdraw the overdraft facility on notice and also the right to record a default

 

This may be clutching at straws though

 

[Sarrahk]

Gutted, I am going to try my luck anyway with complaints procedure and ombudsman etc. I think I may have an argument as they did not even acknowledge my payment plan even though they invited me to make one with them which I did. A default must be designed for someone not making any effort to pay? Additionally having looked at the information commissioner guidance on defaults I may have an argument given there lack of communication re whether or not my payments are satisfactory? I think also they don't have to provide a regular default notice if I have read everything correctly and a simple final demand letter is sufficient for an overdraft... still they need to comply with the guidance I think??!