How can I clear my credit rating?

Q I visited my HSBC bank branch in June to pay off some money on my overdraft, but was told I no longer have an account there - it had been closed and my details sent to the Metropolitan Debt Collection Agency. HSBC says it sent me three warning letters about this, yet despite receiving all my statements over the past three months I have not received these letters.

I moved abroad in 2004, but have maintained my account in the UK and regularly paid into it to clear my overdraft. HSBC says the account has not been used, but I have records of paying money into it in February. The bank refuses to investigate the matter.

As a result, I have incurred significant costs from the debt collection agency and my credit rating has been severely affected. I am concerned that this may adversely affect my chances of getting a mortgage in England in the near future. NA

A As you live abroad I assume your post was being forwarded to you - did HSBC have your address abroad or was a friend or relative forwarding your mail? If so, he or she may have missed something or thrown away anything that looked like a circular or junk mail, which could account for the missing letters.

If you have records of paying money into the account, HSBC cannot close it on the grounds that it is a dormant account, as these are usually classified as accounts where no activity has taken place for 12 months. However, the bank may argue that you breached account-holding conditions - namely, that accounts and overdrafts are open to UK residents only.

As you moved abroad in 2004 you would no longer be eligible to hold the account. The only suggestion I can make is that you write to the credit reference agencies explaining your situation and they may be able to add an explanatory note to your credit file.