I filed for bankruptcy in february 2007. A couple of months later I got a well paid job and started making payments to the receivers of £420 per month. In 2008 I was discharged from the bankruptcy but continued making payments until february 2011. I'm in the process of trying to buy a home (cheaper than renting) and Lloyds have said I have good credit with them and they would be happy to lend but my credit rating shows that HSBC and Welcome are showing default so they won't lend to me until these are rectified.I have a discharge letter from the insolvency services and a bankruptcy certificate from the court. Welcome instructed us to send a copy of each to them with a covering letter then they can change theirs from default to satisfactory, but HSBC are refusing to do anything and say I can only wait until february 2013 which is when it comes off automatically. The credit expert people said that they can change theirs to satisfactory also in branch if we have the 2 documents. Please could you let me know if this is correct or if there is another way of correcting this?
Province/Country relating to question : Britain
Verbal communication with credit expert and HSBC. Going into a branch of HSBC who took a copy of the documents and said they would send them to their insolvency department (but they had not come across it before)
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To be clear please HSBC are refusing to mark the default as settled or satisifed though the accont was included in your bankruptcy?
That is correct
Have you made a complaint to the bank regarding this to date?
no we havn't but do you think i should?
That would be the first step I would suggest. You can refer the complain if you are not satisfied with the outcome to the Financial Ombudsman free of charge. In terms of the law - what HSBC must do...
If the account was included in your bankruptcy, HSBC should have marked the account in default as the have done. The default will stay on your credit reference file for six years from the date of the default however now that you have been discharged from your bankruptcy you can send proof of your discharge to everyone included in your Statement of Affairs. Those organisations whose debts were included in your bankruptcy should then mark the entry on your credit reference file to show that you no longer owe money on that account either by marking the entry as ‘satisfied’ or ‘settled’ for example. The default will not be removed from your credit reference file until six years from the date of default though it should be marked as above.
If HSBC do not cooperate and you wish to do something before your complaint to the Ombudsman is resolved, you can ask the credit reference agency to add a statement called a ‘Notice of Correction’ to the default entry. In your statement, you may like to say that the entry was included in your bankruptcy.
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LL.B (Hons), Prof Dip Law & Practice. 9 years experience in private practice in England
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