HSBC Refusing to default accounts.

[Emptysack]

Hi all, I previous had an HSBC package account with overdraft and credit card. Around 2018 I got into some financial problems and the accounts were defaulted. I ended up owing them around £6.5k in total. 

 

My credit has been terrible ever since, as you can imagine. I decided that I was just going to have to live without credit for 6 years, and tbh I have been getting along fine. I am in a much healthier position financially now. However I still have these defaults and a couple of other minor ones from the same time hanging over me. 

 

I decided recently to use checkmyfile to do a multi agency credit check to see how long had passed since the defaults and how long it would be until they were off my reports.

 

However upon checking it appears they have not defaulted the accounts, but have been marking them as 6 months late for the past 36 months.

Are they allowed to do this?

 

I thought defaults and statute barred debts existed for a reason. so people who have made mistakes will learn form them but also to get the chance to start again after a certain period of time has passed.

 

TBH I don't recall ever receiving a default notice for either of these accounts.

 

It appears HSBC are content to just late the accounts sit in perpetual arrears for ever.  

 

What are my options here?

I know I made mistakes in the past but I would like to be able to restart sometime.

Is what HSBC are doing even legal?

 

Thanks in advance

Edited November 2, 2021 by Emptysack
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[dx100uk]

so there is no defaulted date stated in the account(s) summary line?

 

6 actually does mean default on many platforms or its 8 on others.

 

creditors dont have to issue a default notice nor actually register a default if they do issue a DN.

 

so you have more than 6 yrs of '6' showing in the debt(s) history?

 

 

[Emptysack]

No, there is no default showing on the account. The HSBC accounts are still showing as active accounts. but 36 months late.

 

I don't think they have ever issued a default notice either. Seems they are content to just let the account stay on my file forever, in arrears.

 

I don't have more than 6 years of history with them. I have around 5 and the last 3 have been a read 6 every month for around 36 months.

 

What would my options be here?

 

 

 

 

[dx100uk]

lets see what happens when the 1st 6 reaches 6yrs from entry.

 

if not we can move fwd with a complaint that the a/c should have been defaulted with 3-6mts from the 1st 6 under the ico guidelines that were current at that time and see how it progresses.

 

dx

 

[Emptysack]

Ok, thanks for your advice. 

 

Would that work even if they had not defaulted the account?

[dx100uk]

thats why..they haven't and should have....

[Emptysack]

Do you think think I should contact them about it now or should I leave it because it will become statute barred after 6 years?

 

[Andyorch]

Not until a default notice is issued, statute of limitations does not commence until a cause of action has started...IE a Default Notice.

According to the new and accepted view on limitations.

[Emptysack]

What are the ICO guidelines regarding accounts that are in arrears? Should they be defaulted after a certain period of time ?

[dx100uk]

the ico guidelines were updated in i think 2014 to no longer state any time limit, prior to that and for the time of your takeout, the guideline clearly stated 3-6mts. there are numerous cases here of successful retrospective defaults being added thus causing an account to no longer show as the default was greater than 6yrs ago.