Silent account and defaults

formulaonefan

Hello all,

I had a silent barclays bank account for ages. When I moved I changed address on everything but forgot about barclays account. I had one mobile phone direct debit that was still on barclays account which I wasn't aware. I had overdraft facility on barclays but I left 500 pounds still in barclays so I can still keep it if I want. Recently my mobile phone got cut off and when I checked it was cut off because my direct debit payment failed. I was surprised because I still thought my mobile direct debit was with my lloyds tsb bank account. I later found out barclays have closed my bank account with £450 pounds overdraft. All this time my mobile direct debit has been coming off barclays account and my barclays account changed from positive balance to negative balance.

Barclays closed my bank account recently and I wasn't aware because it was still going to old address. I visited the branch and found out they closed my account with negative balance and "Defaulted" my account.

I paid the balance and asked them whether my default will be removed and they told me the default will be changed to default satisfied.

What effect does it have on my credit record? Is it considered similar to bankrupcy by lenders? Will I have trouble getting mortgage, credit cards etc? I'm extremely worried. Please let me know.

Tixy

A satisfied default will affect your credit rating but not as much as an unsatisified default and certainly nothing like as much as bankruptcy.

Bacause you did not inform them of the change of address I think you will be unlikely to get the default removed on a technicality. As you have asked them to remove it voluntarily and they have said they will only mark it as satisfied then I think you are stuck with it on your record.

Having a default may mean that you can't get the very best rates available/advertised but won't wreck your rating altogether. It will stay on your credit files for 6years from the date of default but after a couple of years (providing you pay all other credit on time) it should not be having a significant impact.