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Hi. If a customer exceeds an overdraft the bank are entitled to recall that facility. The lending code says that banks should consider hardship, should accept communication in writing and not insist on 'phone centre contact if requested and should consider repayment proposals from customers in financial difficulty.
When excess notice #1 was sent to the customer in April she responded with a hardship letter along the lines "I have been made redundant and will bring the account back to within the agreed o/d asap."
Bank then send a letter telling her to contact their call centre.
Excess (and final) notice #2 sent in May. Customer responds with a detailed repayment plan of £100 straightaway and £50 pm until od is fully cleared.
Bank ignore her second letter. In later correspondence they freely admit to ignoring it because she had not contacted the call centre by 'phone.
Default notice arrives in june. 18 days to pay in full or else Default.
Prior to receiving the DN but after the bank has posted it, the customer feels compelled to call them and an arrangement plan is bullied out of her of £150 pm.
Customer calls back a week later and is told verbally on the phone that it is too late to enter into an arrangement plan because the account has defaulted.
Customer complains and correspondence is entered into. bank say we can do nothing, pay up or escalate your complaint. Customer escalates complaint. The 18 days expiure and they reguster a Default with the CRAs.
On the same day the Default is registered with the CRAs the customer pays off the full balance but disputes the account brcause of the bank's unfair conduct.
Bank tell her they will never remove the default at the CRAs. It must stay there for 6 years, albeit marked as "satisfied."
the account is terminated by the bank on the exiration of the 18 day DN period.
HSBC subsequently reinstate the account but say the Default must stay.
When excess notice #1 was sent to the customer in April she responded with a hardship letter along the lines "I have been made redundant and will bring the account back to within the agreed o/d asap."
Bank then send a letter telling her to contact their call centre.
Excess (and final) notice #2 sent in May. Customer responds with a detailed repayment plan of £100 straightaway and £50 pm until od is fully cleared.
Bank ignore her second letter. In later correspondence they freely admit to ignoring it because she had not contacted the call centre by 'phone.
Default notice arrives in june. 18 days to pay in full or else Default.
Prior to receiving the DN but after the bank has posted it, the customer feels compelled to call them and an arrangement plan is bullied out of her of £150 pm.
Customer calls back a week later and is told verbally on the phone that it is too late to enter into an arrangement plan because the account has defaulted.
Customer complains and correspondence is entered into. bank say we can do nothing, pay up or escalate your complaint. Customer escalates complaint. The 18 days expiure and they reguster a Default with the CRAs.
On the same day the Default is registered with the CRAs the customer pays off the full balance but disputes the account brcause of the bank's unfair conduct.
Bank tell her they will never remove the default at the CRAs. It must stay there for 6 years, albeit marked as "satisfied."
the account is terminated by the bank on the exiration of the 18 day DN period.
HSBC subsequently reinstate the account but say the Default must stay.
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