HSBC - A little overdrawn, 3 bank charges then default!

[ctid1987]

Long story short...


Lost job, slightly overdrawn by maybe £10 maximum through either direct debit or card payment. No agreed overdraft, was a basic standard account.


They added 3 bank charges before making the figure £105 and defaulting me and closing the account.


Is there anything I can do to remove the dafault.


Here are pics of credit file -










Thanks,


Tony

[ctid1987]

Re: HSBC - A little overdrawn, 3 bank charges then default!

I have SAR'd them, and they have produced all paperword showing the correct default notices etc.

However, are they legally allowed to default an account and register it on CRA file based mainly on charges??

[leclerc]

Re: HSBC - A little overdrawn, 3 bank charges then default!

How quickly did they shut the account?

Did you ever speak to them about the overdrawn amount to arrange to repay the small amount overdrawn?

From the above you did not so yes it is correct what they have done....

[ctid1987]

Re: HSBC - A little overdrawn, 3 bank charges then default!

I was made redundant, and honestly - no I avoided contact with them.

However is it fair to have a default fee comprised solely of charges. I was overdrawn by £4.76!!

[leclerc]

Re: HSBC - A little overdrawn, 3 bank charges then default!

I was made redundant, and honestly - no I avoided contact with them.

However is it fair to have a default fee comprised solely of charges. I was overdrawn by £4.76!!

Can you clarify whether you called them when the account went overdrawn or not?

The answer is that yes they can default you since the original amount was not charges but IF you did nothing else and it does happen then yes by sticking your head in the sand and doing nothing they can default you.

Did they send any letters to your address? Did you change the address without notifying the bank?

Had you spoken to them when it was at £4.76 then perhaps the default would not exist since you would have had an argument for leniency, ie lost employment.

[CleverClogs]

Re: HSBC - A little overdrawn, 3 bank charges then default!

Can you clarify whether you called them when the account went overdrawn?

Or, for that matter, what he called them? :grin:

[ctid1987]

Re: HSBC - A little overdrawn, 3 bank charges then default!

I understand where I went wrong. No I dont think I made contact although not 100% sure at the time. I did recredit my account with £150 (of borrowed family money!) to try and get back in the clear but charges where added on the following month which then resulted in a default.

I was in between a rock and a hard place and buried my head in the sand. Obviously things are well and truly on the up now as saving for a mortgage come the new year and this is the remaining problem I need to deal with.

I have sent them one letter, with a bit of a sob story. Ill upload their reply for you all to read.

Ive attached the DN and Response letters below

[leclerc]

Re: HSBC - A little overdrawn, 3 bank charges then default!

As strange as this may seem can you ask them whether Premium Credit had one or two direct debits set up on your account?
Were they Continuous payment authorities on your account?


Reason I ask is that it is common banking practice to cancel a Direct Debit by the bank when it is presented twice for repayment under the same Direct Debit. IF another new Direct Debit was then set up then it would have been one NOT authorised by you and on a technical basis fraudulently obtained since clearly the instruction had been cancelled by the bank and another set up without informing you(unless Premium Credit Ltd did inform you in writing which again you have not said whether they did or not).

Whilst I would argue it is the customer's responsibility to have money in the account and to have knowledge of their direct debits, standing orders, etc ,etc, it is the banks' responsibility not to pay out on unauthorised direct debits. They might argue a new DD mandate was set up however, you did not formally authorise might be an argument and therefore potentially charges refunded plus monies recovered. The only problem you have is that it's been nearly 5 years since it happened.

[wales01man]

Re: HSBC - A little overdrawn, 3 bank charges then default!

As much as I dislike Banks and Bankers charges are set out in their terms and conditions and as the letter states these have been applied as per the T&Cs.

The bank states that a customer when unable to pay a DD due to lack of funds should cancel them to avoid rejection and charges.

If the bank is correct in their actions then the entry on the OPs credit record is correct if not an appeal to the FOS can be taken

Banks care only for profit sob stories or offers other than an immediate clearing of a debt are often turned down, not a lot can be done in this case? Only thing is to wait until the 6 years are up.

[CleverClogs]

Re: HSBC - A little overdrawn, 3 bank charges then default!

Only thing is to wait until the 6 years are up.

And be grateful that the wunch of bankers in Hong Kong and Shanghai didn't ask the local chapter of the Tongs to chop off the debtor's hands?

[wales01man]

Re: HSBC - A little overdrawn, 3 bank charges then default!

I wondered what the chinaman was doing outside ?

[ctid1987]

Re: HSBC - A little overdrawn, 3 bank charges then default!

As strange as this may seem can you ask them whether Premium Credit had one or two direct debits set up on your account?
Were they Continuous payment authorities on your account?


Reason I ask is that it is common banking practice to cancel a Direct Debit by the bank when it is presented twice for repayment under the same Direct Debit. IF another new Direct Debit was then set up then it would have been one NOT authorised by you and on a technical basis fraudulently obtained since clearly the instruction had been cancelled by the bank and another set up without informing you(unless Premium Credit Ltd did inform you in writing which again you have not said whether they did or not).

Whilst I would argue it is the customer's responsibility to have money in the account and to have knowledge of their direct debits, standing orders, etc ,etc, it is the banks' responsibility not to pay out on unauthorised direct debits. They might argue a new DD mandate was set up however, you did not formally authorise might be an argument and therefore potentially charges refunded plus monies recovered. The only problem you have is that it's been nearly 5 years since it happened.

As far as I remember Premium Credit was my car insurance payment. And I seem to remember reading something along the lines of if two direct debits where missed they would cancel it. I will see if I can get in touch with them to clarify.

As much as I dislike Banks and Bankers charges are set out in their terms and conditions and as the letter states these have been applied as per the T&Cs.

The bank states that a customer when unable to pay a DD due to lack of funds should cancel them to avoid rejection and charges.

If the bank is correct in their actions then the entry on the OPs credit record is correct if not an appeal to the FOS can be taken

Banks care only for profit sob stories or offers other than an immediate clearing of a debt are often turned down, not a lot can be done in this case? Only thing is to wait until the 6 years are up.

I'd be willing to pay the full debt including charges if they will remove entry from my CRA file. However I'm under the impression they can't file a default to include Penalty sums. Another forum I'm seeking help on they are quite sure that the default amount should be the amount to rectify the original arrears!?

And be grateful that the wunch of bankers in Hong Kong and Shanghai didn't ask the local chapter of the Tongs to chop off the debtor's hands?

Tell me about it - based on my previous credit history with other lenders I'd probably either have no limbs or have been stoned to death! Lucky I'm a good boy now - and living in GB!

[leclerc]

Re: HSBC - A little overdrawn, 3 bank charges then default!

If you are getting help from multiple forums then that can be quite dangerous if we are suggesting differently to another forum because you might follow half the advise from us and half from them and end up spending time and energy when none really is required.

[ctid1987]

Re: HSBC - A little overdrawn, 3 bank charges then default!

I think I'm getting the general jist from all of the forums

I've no chance of getting it wiped

[ctid1987]

Re: HSBC - A little overdrawn, 3 bank charges then default!

Have you ever heard of a goodwill gesture if I pay the full amount of them deleting it from my CRA file? Maybe if I send my sob story to MR CEO?