Impact of credit reports on any future transactions

bluelottie

I have been with the same bank for 25-odd years but it is one of the big four and I decided to follow advice and switch my current account to a different bank.

Unfortunately, I have been told that I will probably only be able to have a cash-card only account due to my credit report. I have a copy of my credit report because I was turned down by my current bank for a credit card they suggested I apply for.

Everything in the report demonstrates that I have a good credit record except for one thing: I opened a joint account with my husband when we married but never used it because I couldn't be bothered to transfer everything over. Any letters in connection with the account were opened and dealt with (or not) by my husband because he was the only one using it and also his name was the first name on the letters and we both assumed he was the main account holder (although the bank informed me otherwise later). When my husband and I separated, I contacted the bank by phone and letter, asking them to remove my name from the account. I did not receive a reply from the bank but several weeks later received a letter from a debt collecting agency informing me that the account was overdrawn by approximately £1,000. I immediately contacted the agency and, despite the fact that the debt was not of my making, arranged to pay by direct debit and the debt was fully paid off by me 3 months later.

All of this means that there is a 'default' status on my credit report and I have been unable to get a credit card, have been treated like dirt by the person who was going to quite happily set up a new account for me in a different bank until I told her what had happened, and, in all likelihood, every new finanical transaction I try to initiate will meet complications. I have added the above information to my credit report but it seems this is not enough.

What can I do? Should I try to contact the bank manager where the joint account was held? Or somebody who is making these sorts of decisions at the new bank? Nobody seems to want to know. Is there a 'nice' bank who will take individual circumstances into consideration or will the default status just put them all off?

I'd appreciate any thoughts, views, ideas, offers (within reason!!)...

Lottie

happybeingme_2

Just a suggestion but may you should contact the collection agency and ask them to send you a letter confirming that the debt has been settled and also ask them to contact the credit agency and have the debt marked settled.
Additionally, you can contact Experian. https://www.creditexpert.co.uk and get a free credit report and call them and ask their advice in solving the problem. They are very helpful! This should at least let future creditors know that the debt has been dealt with and if they ask you can give explanations as to how it occured in the first place.
Hope that is of some help

Good luck!!!

Bernard_Coleslaw

bluelottie wrote:

I have added the above information to my credit report but it seems this is not enough.

Hi Lottie, sorry to hear of your predicament.

Some people believe that a Notice of Correction, such as the one you've mentioned here, could actually cause more problems. The credit scoring systems used by banks are set up to make automated decisions, and there is some evidence to suggest that they throw a wobbly when they see a NOC.

Despite the fact that they are supposed to manually review applications where the customer has a Notice on theie record, it is believed that some lenders might think "There's no smoke without fire" and automatically decline anyone who has one?

I think there are two schools of thought on this - I tried searching the forums, but no luck. Anyone else know how this works?