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HSBC Default and the CRAs

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  • HSBC Default and the CRAs

    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.
    Last edited by The Debt Star; 13th November 2010, 00:17:AM.

  • #2
    Re: HSBC Default and the CRAs

    anyone? is it worth fighting HSBC to remove the Deafult or would it be a pointless exercise?


    • #3
      Re: HSBC Default and the CRAs

      Originally posted by The Debt Star View Post
      anyone? is it worth fighting HSBC to remove the Deafult or would it be a pointless exercise?
      Afraid judging by previous post a hard job to do, they seem to be ignorant to fact which does not suit them, others may probably comment?:seagull:


      • #4
        Re: HSBC Default and the CRAs

        The FOS telephoned yesterday and said that HSBC must remove the Default on the credit reports AND compensate 300.

        FOS said that HSBC had not communicated properly with the customer before and after she received the s78 default notice.

        Yet to be confirmed in writing to her but we will post up the FOS letter when received.

        This dispute has been long and hard fought with HSBC and, if the Default is removed and compensation granted, then is a good victory against HSBC who have REFUSED throughout to remove the Default or acknowledge any breaches of the lending code.

        If the result is as indicated by the FOS then we will report this further to the LSB who should then be compelled to investigate HSBCs breaches.


        • #5
          Re: HSBC Default and the CRAs


          Here it is, the official FOS adjudication.

          My OH went from a position of having her current account terminated and a Default regsitered with the CRAs which the bank REFUSED to remove because it was an indicator of her "account conduct" and they had "a responsibility to other lenders" blah blah blah.

          They have since recalled the account and the FOS have now forced HSBC to recall the Default with the CRAs plus OH gets 300 compensation.

          Letter attached in its full glory. That's the first blast from the Death Star, Fire When Ready Commander!

          Now its Egg and Barfclaycard's turn...!


          Last edited by The Debt Star; 13th November 2010, 22:37:PM.


          • #6
            Re: HSBC Default and the CRAs

            while I haven't seen the letter - but since HSBC doing something scaringly similar to me now, I'm glad that FOS ruled in the customer favor. thanks for the ray of light of hope!


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