HSBC old debt - Advice needed please

[Turtle]

I tried to ask this question on another site and just received a barrage of comments stating what a drain on the countries resources I was, how immature I was etc. I just need an answer, I already know I've made mistakes. I don't need reminding =(

So to cut a long story short:
Debt owed to HSBC -
Loan £3,500.00
Overdraft - £1500.00

I stopped paying both debts back in 2009 for personal reasons (I won't bore you with them, but I couldn't pay back debts due to massive circumstance change)

Default (first) date on both are May 2009. No CCJ's recorded against my name.

How do I go about clearing this? Do I wait until the 6 years are up (May 2015 if it goes by first default date) or do I contact the bank (Unsure who they sold the debt to) and offer a settlement figure? I could only pay £1,500 as I have been left some money by a relative.

I really want to be able to improve my credit score (1* and 490 at the moment) but I don't know which way round to go! Will they accept £1,500 as a settlement? Or should I wait until the debt "drops off" if that is what it actually does?

Any help is greatly appreciated and apologies if there is a specific thread for this. I'm new tonight!

[PlanB]

Re: HSBC old debt - Advice needed please

I tried to ask this question on another site and just received a barrage of comments stating what a drain on the countries resources I was, how immature I was etc. I just need an answer, I already know I've made mistakes. I don't need reminding =(

So to cut a long story short:
Debt owed to HSBC -
Loan £3,500.00
Overdraft - £1500.00

I stopped paying both debts back in 2009

Hello Turtle and to AAD.

I'm sorry to hear that you were given a hard time on another forum. That won't happen on here I assure you

My first question is who currently owns your HSBC debt because debts which are not 'performing' often get sold on?

[Turtle]

Re: HSBC old debt - Advice needed please

Hello Turtle and to AAD. I'm sorry you were given a hard time on another forum. That won't happen on here I assure you

My first question is who currently owns your HSBC debt because debts which are not 'performing' often get sold on?

Thank you =)

i am am unsure as to who owns the debt. It shows on my credit report as HSBC but I moved before default was placed and have never received a debt letter from any DCA's chasing me for the money so I don't know so has it =(

[PlanB]

Re: HSBC old debt - Advice needed please

So was the last payment you made to HSBC in 2009 when you got the default on both the loan and the current account? I'm looking ahead to these debts possibly becoming statute barred next year.

As you say both those defaults will drop off your credit file in May 2015 whether you pay the debts or not. I don't think there is anything you can do to accelerate that. Even if you pay them with a F & F settlement I expect all that will happen is the CRA file will get marked as settled (or possibly part-settled) but the default will remain until the six years is up.

Is there a reason why you are anxious to get shot of the defaults before next year like a mortgage application or something ?

What worries me (and please wait for others to comment) is that if you approach HSBC after all these years of silence you may galvanize them into action and they'll start pursuing you formally for the debts once you reveal where you now live.

[Turtle]

Re: HSBC old debt - Advice needed please

So was the last payment you made to HSBC in 2009 when you got the default on both the loan and the current account? I'm looking ahead to these debts possibly becoming statute barred next year.

As you say both those defaults will drop off your credit file in May 2015 whether you pay the debts or not. I don't think there is anything you can do to accelerate that. Even if you pay them with a F & F settlement I expect all that will happen is the CRA file will get marked as settled (or possibly part-settled) but the default will remain until the six years is up.

Is there a reason why you are anxious to get shot of the defaults before next year like a mortgage application or something ?

What worries me (and please wait for others to comment) is that if you approach HSBC after all these years of silence you may galvanize them into action and they'll start pursuing you formally for the debts once you reveal where you now live.

I assume I last made a payment in May 2009 as that's when both defaults were issued but the credit report doesn't state an exact date of first payment missed =(. I know it definitely hasn't been after that date!

That is exactly it! I wanted to buy a house (When I have some money) and was looking at a 4 year plan (from now) but I'm really concerned as these two defaults are the two that are holding me back from improving my credit =(

I was concerned that if I contact them, they will ask for all of the money which I cannot pay quickly =(

[PlanB]

Re: HSBC old debt - Advice needed please

I was concerned that if I contact them, they will ask for all of the money which I cannot pay quickly =(

I'm pretty sure if you contact HSBC they will ask you for money!

If HSBC is still reporting to your CRA file then that probably means that they still own the debt and could have given up all hope of collecting it. Don't disillusion them on this belief If it had been sold on to a debt purchaser you should see their entry on your CRA file instead.

I've got internet connection problems tonight so I'll pop back tomorrow to see what else has been said on your thread. If you're not looking to take out a mortgage for another four years then if it was me I would let sleeping dogs lie with HSBC.

Having said that they may sell on your debt(s) just before they become statute barred next year and you could get a court summons to your old address if you don't respond to any letters sent by DCAs. I'm not saying you will, but if you do and the case goes to court without your knowledge then you may get a CCJ by default which will remain on your CRA file for a new six year period. However, you may have a good chance of getting a CCJ set aside if the court papers were served on address at which you didn't live and you can prove that you told HSBC your new address.

That last paragraph was meant to scare you. I just think you need to make an informed decision on where you go from here. My personal view is I would keep my head down if I were in your shoes.

[Turtle]

Re: HSBC old debt - Advice needed please

I'm pretty sure if you contact HSBC they will ask you for money!


If HSBC is still reporting to your CRA file then that probably means that they still own the debt and could have given up all hope of collecting it. Don't disillusion them on this belief If it had been sold on to a debt purchaser you should see their entry on your CRA file instead.


I've got internet connection problems tonight so I'll pop back tomorrow to see what else has been said on your thread. If you're not looking to take out a mortgage for another four years then if it was me I would let sleeping dogs lie with HSBC.


Having said that they may sell on your debt(s) just before they become statute barred next year and you could get a court summons to your old address if you don't respond to any letters sent by DCAs. I'm not saying you will, but if you do and the case goes to court without your knowledge then you may get a CCJ by default which will remain on your CRA file for a new six year period. However, you may have a good chance of getting a CCJ set aside if the court papers were served on address at which you didn't live and you can prove that you told HSBC your new address.


That last paragraph was meant to scare you. I just think you need to make an informed decision on where you go from here. My personal view is I would keep my head down if I were in your shoes.

That at definitely scare me! Mind you, I've been scared for the last 5 years waiting for a letter to arrive =( I think I'll do my absolute best to save as much money as a I can and wait for a letter to hit my doormat asking for it! At that point, I will have to pay so no more negative marks go against my name! Another year and a bit of dreading the post and checking my credit file all the time! Thank you very much Plan B! You've been extremely helpful and kind!

[PlanB]

Re: HSBC old debt - Advice needed please

Thank you very much Plan B! You've been extremely helpful and kind!

[Undercover Elsa]

Re: HSBC old debt - Advice needed please

Hi Turtle and a warm welcome to AAD
So sorry to hear that you were abused on the other forum. We get a lot of people coming here for that very reason.
Being in debt isn't a crime, it happens to the best of us when circumstances change, and as PlanB says, you will not get any snide comments here.

Also as PlanB says, I'd let sleeping dogs lie, any contact now would result in a review of your file and risk collection activity restarting.

When was the loan taken out? Was it pre April 2007?
In regard to the Statute Barred date, this would be somewhat earlier than the date of default, as formal CRA defaults can be issued up to 6 months after the first missed payment. The day after the first missed payment is usually when the SB clock starts ticking, with some exceptions eg if you make any further payments later, or positively acknowledge the debt in writing.

I'd be wary of constantly checking your credit file (despite what they tell you on other forums), as each time you do you reaffirm your address & details and it can act as a pheromone to DCA's!

If they do start chasing you, you can do a Subject Access Request to find the date of last payment, but until then I'd keep my head down!

Elsa x

[Turtle]

Re: HSBC old debt - Advice needed please

Hi Turtle and a warm welcome to AAD
So sorry to hear that you were abused on the other forum. We get a lot of people coming here for that very reason.
Being in debt isn't a crime, it happens to the best of us when circumstances change, and as PlanB says, you will not get any snide comments here.

Also as PlanB says, I'd let sleeping dogs lie, any contact now would result in a review of your file and risk collection activity restarting.

When was the loan taken out? Was it pre April 2007?
In regard to the Statute Barred date, this would be somewhat earlier than the date of default, as formal CRA defaults can be issued up to 6 months after the first missed payment. The day after the first missed payment is usually when the SB clock starts ticking, with some exceptions eg if you make any further payments later, or positively acknowledge the debt in writing.

I'd be wary of constantly checking your credit file (despite what they tell you on other forums), as each time you do you reaffirm your address & details and it can act as a pheromone to DCA's!

If they do start chasing you, you can do a Subject Access Request to find the date of last payment, but until then I'd keep my head down!

Elsa x

Hi Elsa,

Thank you for your post! Should I cancel my subscription to the CRA then or have I already done the damage by checking?

I'm pretty sure the loan was taken out in June 2007 Is there a way to check when the SB would have started without anyone finding out I've checked?

[Undercover Elsa]

Re: HSBC old debt - Advice needed please

If you were paying by DD from a different bank you could check those records..or maybe figure it out from when the first "1" for missed payments appeared on your credit file.

When did you open the CRA account?

[patchouli]

Re: HSBC old debt - Advice needed please

Can you not visit your old address and ask for any letters that have been sent to you? I'd want to know if the DCA has been contacting me, the whole going to court without me sounds pants!