HSBC Default of £8k! Really Complex One!! Help Required!

[Celestine]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

I think your case falls very much into the category of 'Irresponsible Lending'. We had a situation a while back when a chap was randomly granted funds to use on a betting site and shouldn't have. In my opinion, your situation was more clear cut, you shouldn't have been granted access to 10K to GAMBLE with :o.

[moonstar1981]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

I think your case falls very much into the category of 'Irresponsible Lending'. We had a situation a while back when a chap was randomly granted funds to use on a betting site and shouldn't have. In my opinion, your situation was more clear cut, you shouldn't have been granted access to 10K to GAMBLE with :o.

I completely agree with you

At that time - I had 2 CCJ's, a number of defaults and late payments and I had previously made numerous attempts to get an overdraft facility with the bank which were all declined.

[leclerc]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

Celestine did PM me and if you look here: https://investments.hsbc.co.uk/produ...g#/moreDetails

When you opened the account then they would have given you an initial £10,000. they have a dealing limit of 10K at that time and it's now £10 210. That allows you to instantly trade in stocks and shares.
I did once open a NatWest stocks and shares account but I quickly lost interest but had made no trades so any fees they took I could get refunded.

I don't agree with the perspective that it is irresponsible lending but I do think that the OP did not inform themselves or give themselves enough information before effectively using the funds that were allocated for dealing with in the first place. If you do not understand how the account works then never ever use something without first of all informing yourself what you are getting into.

Having said I do not agree with you on irresponsible lending, it does say that the limit is "subject to meeting our criteria". I would be tempted to ask what that criteria was due to the fact that they gave you a £10k sharedealing limit to begin with. Was the current account a sole account or joint account? Was there a lot of money going through the account at the point that the sharedealing account was opened?

On their own site this is the wording( I will have a read backwards in a bit more depth and see what else I can see from this): InvestDirect has an initial dealing limit of £10,200 (subject to meeting our criteria), which means deals placed and yet to settle must not exceed this dealing limit. You need to ensure that sufficient money is available in your nominated HSBC current account on the day of executing a trade to meet the costs of any purchases on the settlement date.

[leclerc]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

I did not even think it was a live account, I thought it was a Demo account so that you could "try out the system" etc - I had no money in my current account at the time, so I was using HSBC's money when trading follow by it then debiting my current account 3 days later.


No T&C's in the SAR pack. What I'm getting at is that it seems they upgraded my InvestDirect account to plus but waited until after these trades had been made - As what they are saying from there correspondence is that Investdirect account is linked to your current account (under there T&C's) and that you must ensure sufficient funds are available on your HSBC current account - Surely there's a part on the bank to check that I have sufficient funds in my account? Then the day after those trades were made they upgraded the account to InvestDirect Plus and new T&C's created a new cash account and states you will need to credit this account before submitting any purchase orders.

There is no statement for the Investdirect account.

The only statements I have are form my current account and the debits made on the share purchases.

One thing does intrigue me, did you sell the shares that were bought on November 2008? How much revenue was generated? And how much did this reduce the overall debt?

[wales01man]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

Looks like the OP is wrong and owes bank

[leclerc]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

Looks like the OP is wrong and owes bank

I do not agree though that he owes them the amount that appears to have been quoted since if there was 8k's worth of shares bought then they would have been sold and even if that was for a loss then quite a bit of money might have been recouped unless it was in companies who went bankrupt prior to the sale of the shares rendering them pretty worthless....

[moonstar1981]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

One thing does intrigue me, did you sell the shares that were bought on November 2008? How much revenue was generated? And how much did this reduce the overall debt?

This is where it gets even more confusing...

When going through the SAR documents, in the InvestDirect part: there is a document called Customer Profile. Under this it has the usual details - DOB, name, address, salary etc Then it has Customer Holdings. This has Accounts, product name balance and limit.

Under here is my current account HSBC Plus with a balance of £8,315.44D - InvestDirect + with a balance of £5,368.30C

I don't know why there is no reference to this in all the documents they have sent other than this piece of paper which says "customer profile 988387373773(number)

[wales01man]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

Iagree if the bank sold the shares the debt should be less but maybe the shares are still owned by the Op or the bank thinking like you Leclerc something is being held back by the bank its beginning to not add up

[moonstar1981]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

One thing does intrigue me, did you sell the shares that were bought on November 2008? How much revenue was generated? And how much did this reduce the overall debt?

I genuinely have no idea if I did sell them or not! Looking at the current account this doesn't seem to be the case otherwise there would be a positive balance or a slightly negitive balance depending on whether a profit or loss was made.

Nothing in the SAR documents with this information

[moonstar1981]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

One thing does intrigue me, did you sell the shares that were bought on November 2008? How much revenue was generated? And how much did this reduce the overall debt?

Also, in the SAR investdirect documents, there is a Work item history which on the 28th November states "Trade Reserve Decline" and then another note stating that a trading reserve is declined.

[moonstar1981]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

Looking at the InvestDirect T&C's online https://investments.hsbc.co.uk/pdf/i...rect_ts_cs.pdf

Surely the below should have applied? I had -£108.07D balance in my current account on the day that I traded shares.

2.7 Where the available cleared funds held in your Nominated
Account are insufficient to settle any of your purchases on
the Settlement Date, we reserve the right not to act upon a
subsequent purchase Instruction until such time as sufficient
cleared funds have been made available in your Nominated
Account to settle the relevant purchase(s). In the case of joint IDA
holders, the Nominated Account will be the account nominated
by the first named joint IDA holder, or such other account as
may be nominated by you from time to time. We may at our
discretion serve you with a default notice requiring you to remedy
the default within the period specified in the default notice, failing
which we may sell any of your Investments to settle the relevant
purchase(s) at our discretion and you authorise us to do so.

[FlamingParrot]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

The main issue I see here is that you are not being pursued for this debt, and it's just over a year away from Statute Barred. If you were being harassed and threatened with legal action, I could see the point of trying to look at all the arguments, however, your main concern seems to be the default on your credit file, which has just over 2 years left to run. Getting defaults removed is never easy, and you have to ask yourself whether it's worth waking up a sleeping giant rather than just letting it sleep for another couple of years. :decision:

[moonstar1981]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

The main issue I see here is that you are not being pursued for this debt, and it's just over a year away from Statute Barred. If you were being harassed and threatened with legal action, I could see the point of trying to look at all the arguments, however, your main concern seems to be the default on your credit file, which has just over 2 years left to run. Getting defaults removed is never easy, and you have to ask yourself whether it's worth waking up a sleeping giant rather than just letting it sleep for another couple of years. :decision:

I understand your point. I guess for me it is that I am getting married this year and was hoping to buy a house after this that was all. The point of removing it was to at least try to get rid of it.

[FlamingParrot]

Re: HSBC Default of £8k! Rally Complex One!! Help Required!

Getting defaults removed can be extremely hard work, the only chances of success have when you can show they have been recorded incorrectly, for example, a duplicate default or a default for a debt that was actually paid. Disputing the debt on the grounds of enforceability, irresponsible lending, etc. isn't likely to get it removed and you'll be opening a can of worms. 2 years go back quickly, why not find a nice, cosy place to rent, save up for your deposit and buy in 2015, when the default drops off. If you start making waves, you could end up with a CCJ for 6 further years! :scared: :scared: :scared: