Late payment penalty

Fireblade

Hi,

I currently hold several accounts including a mortgage and a credit card with Nationwide. I've never been in arrears on anything in my life and have always paid off my credit card in full each month, I use it purely for free foreign use.

I didn't recieve my last statement and while I decided I'd check with my online banking and found my payment was 2 days overdue and i'd been charged the fee. This was annoying but I was more concerned they'd have marked my credit record for it.

I phoned them and they confirmed that my record would be marked accordingly and they would not do anything about it as statements are not bills and it's down to me to keep checking what I owe whether or not statements arrive. Yeah that's probably fine for a non-busy person but I simply forgot, and as you don't recieve statements when you owe nothing I assumed I owed nothing.

How is this mark going to affect me on a realistic basis and is there anyway to get it removed, the guy I spoke to at Nationwide really didn't give a toss despite the fact they could see I had the money in my accounts to pay it off and the fact I'm customer they probably wouldn't want to lose, just seems like an !!!!!! move to me.

McKneff

Give them another ring, if you ask nicely, and you get a nicer person they
may waive the charge if it a first offence.

I think you will find that statemnts come out automatically, even with a nil balance on them. They are done automatically from the printer to the enveloper. Silly i know but i get them all the time.

KimYeovil

You paid late. You get a black mark on your credit file. You have openly admitted you are 'too busy' to keep an eye on your finances. Therefore you are rightly highlighted as a possible risk on your record. Why do you think you are special and your credit record should not accurately reflect your history?

borders_dude

I guess they are correct really.

If I miss a payment, which is very rare I dont blame it on someone else. I accept responsibility for my actions, or in this case inaction.

Try speaking nice to them and they might let you off with any late fees.

Fireblade

Hi, thanks for the reply.

I've had the card a couple of years and when there is no balance due a statement isn't sent (that's most of the time for me) unless there is activity within the last month and then I get one with the activity including the pay-off and a zero balance, but the next months I wouldn't recieve one.

They said that each month a report is sent to experian with all the missed payments so he cannot do anything about it, it's not the £12 charge i'm bothered about, just the credit mark, wouldn't care but it stays there for 7years apparently which takes the pee. I'll try phoning again anyway, probably get the same bloke.

McKneff

Might be easier in the future if you set up a DD or a SO so if you forget it doesnt matter.

Fireblade

KimYeovil wrote: »

Why do you think you are special and your credit record should not accurately reflect your history?

Interesting, well KimYeovil, a late payment of 2 days despite the company knowing I had the finances to pay it off is marked as arrears, the same as if I didn't have the money to pay it off and had been spending irresponsibly or whatever else. As the truth is very different I don't see that I should be painted the same way.

McKneff

The trouble is you are painted in the same way because we are all just a number to them.

They work in different depts so the cc dept wouldnt know how much you have in your current/savings accounts.

I applied for a credit card just lately but despite having no debt, my own house, no mortgage,
significant savings i got refused. When i rang to object they said they the cc dept had no access to anything else to do with my finances except what i put on my application form.

Moggles_2

McKneff wrote: »

The trouble is you are painted in the same way because we are all just a number to them. They work in different depts so the cc dept wouldnt know how much you have in your current/savings accounts. I applied for a credit card just lately but despite having no debt, my own house, no mortgage, significant savings i got refused.

That's right. It comes as a surprise to lots of us, but the credit card arm of Nationwide will have limited info about your current account and savings account(s) with the Society due data protection regulations.

Of course if you exceeded your overdraft limit, it would know about that, but the actual balances and manner in which your bank accounts are funded would not be known.

When i rang to object, they said they the cc dept had no access to anything else to do with my finances except what i put on my application form.

This is not quite true. Lenders obtain info about the other credit facilities you hold from the three credit reference agencies.

Moggles_2

Fireblade wrote: »

It's not the £12 charge i'm bothered about, just the credit mark. Wouldn't care but it stays there for 7 years apparently...

No, three months down the line, your credit files will look something like this:
0001000000000
which shows you have maintained the account perfectly ever since.

Provided that you keep the account open, more recent payment history is added, so that each slip-up drops off your file after 36 months in the case of Experian, 48 months with Equifax.

It might be an idea to set up a direct debit to pay the minimum amount. That way, it's Nationwide's responsibility, not yours, to make sure the monthly repayments get there and on time

TFD_2

I'm sorry, but I've got to agree with the other posts.

If you want your credit file to look immaculate, then you have to treat your finances immaculately.

The payment was late, and your credit rating needs to show this. If I was another lender, and had to make a lending decision, I would want the information to base this on. You made a late payment and I would be entitled to know this.

It isn't fair - my credit rating shows things 5 years ago that mean no mainstream lender will offer me competitive lending. But my credit file is correct - if a little misrepresentative.

As suggested, use a DD for minimum payments - I do this now, and top up payments by other means. This way I cannot miss a payment. It's the only way to go if you want a perfect credit file.

The good news is that one late payment for one month on an otherwise spotless credit file is unlikely to cause you any problems.