Help with a default issue please.

[lloydjones]

While challenging the enforceability of my HSBC loan (in my name only) HSBC defaulted my joint bank account which I held with my wife. There was no dispute with the bank account, which was overdrawn by £449, but HSBC put both outstanding amounts as one debt and have defaulted both. This means that my wife now has a default showing on her credit file through no fault of her own. Do you think my wife has grounds to challenge the default on her credit file and have it removed? Thanks.

[Never-In-Doubt]

Re: Help with a default issue please.

While challenging the enforceability of my HSBC loan (in my name only) HSBC defaulted my joint bank account which I held with my wife. There was no dispute with the bank account, which was overdrawn by £449, but HSBC put both outstanding amounts as one debt and have defaulted both. This means that my wife now has a default showing on her credit file through no fault of her own. Do you think my wife has grounds to challenge the default on her credit file and have it removed? Thanks.

Indeed you do, especially if they done this without notice - they have to give you reasonable notice (banking Code) to close an account, i'd write and complain and then see what they come back with - also request compensation for the duress and stress caused to your wife, an innocent party - obviously you'll need to explain that the banking code and the FSA regs protect this from happening, but make sure you have the facts - if they never gave you at least 30 days notice of account closure (so long as it was not in default) then they have breached banking code (now called Lending Standards Board) - so you report them to the FSA.

If they gave you notice, then forget that part of the argument.