Credit Card Late Payment - Will the banks error affect my credit rating?

bellyboy

Hi all,

This is my first post and would be really grateful if you could help me out on this one!

I have started my first credit card and am very aware of late payments affecting my credit rating. I set up a direct debit with Lloyds from my Lloyds debit to my Lloyds credit card to pay off in full my debt each month. Unfortunately the bank messed up and as a result charged the typical £12 for late payment. Having called them they are now paying this back, but will this be a red dot against my name- it is the first one I would have and the first time I have ever payed late against a credit card?

Any help or advice would be very kind

Many Thanks
Matt

YorkshireBoy

It may go down as a '1', ie payment one month in arrears. Depends when you paid it. Was it as soon as you realised and before the next statement was produced?

I'm curious as to how the bank "messed up". Did they fail to set it up all together? Or was your first statement produced very quickly and as such there wasn't time?

Did the statement say they would collect by DD? If it didn't, then for your own protection (under the direct debit guarantee) it won't.

Mazzarati2000

Apologies if this isn't relevant, but I had a similar experience this week so will share the feedback I got from Natwest:

I Bank with Natwest & pay the full balance from the previous statement in full on or the day before the due date (usually 6th) every month.

This month the due date was the 9th. I realise that paying on the due date can be a dangerous strategy, but as my whole reason for having a credit card is to gain interest on my wages for the month, whilst using the banks money for free, this is how I choose to operate. Until now, this has worked perfectly. As my current account is also with the same bank, the payments have always been instantaneous.

Last w/e I lost my credit card. I informed them & they re-issued one (yet to be rec'd).
The new card will have a new number when it arrives ( obv), so my account # has changed ( unlike with bank account cards).

I paid the balance in full on the due date. But checked on Weds & the payment wasn't showing + they had added a late payment fee to the account ON the due date ( not the day after ).

Anyway, I called them & they confirmed that the payment had been received on time & they 'had no clue' why it hadn't been allocated correctly. I can only assume that the reason for the delay in allocation of funds may have been related to the change in account number around the same day?

They assured me that the charge would be removed automatically when the system updated, but that the person I spoke to would monitor the account for the next few days to ensure that it all went through correctly. The customer service rep that I spoke to also assured me that they do not inform any CR agencies for 1 late payment. Obv I can't comment on Lloyds policy, but it may be similar....

exel1966

Not all (in fact many don't) mainstream card companies advise CRA's of late payments, but they all do of missed payments AFAIK. There is a very distinct difference between the two which YorkshireBoy has hinted at in his post.

If the OP paid prior to the next statement being issued the chances are the CRA's wouldn't be advised, but if it was after the next statement was issued then they more than likely would be advised as it would then be a missed payment rather than just late.

Cancara

Have Lloyds admitted the fault was theirs? If this is the case you can write to them to ensure the information is not recorded on your file.

izools

bellyboy wrote: »

Hi all,

This is my first post and would be really grateful if you could help me out on this one!

I have started my first credit card and am very aware of late payments affecting my credit rating. I set up a direct debit with Lloyds from my Lloyds debit to my Lloyds credit card to pay off in full my debt each month. Unfortunately the bank messed up and as a result charged the typical £12 for late payment. Having called them they are now paying this back, but will this be a red dot against my name- it is the first one I would have and the first time I have ever payed late against a credit card?

Any help or advice would be very kind

Many Thanks
Matt

Typically a late payment isn't recorded unless the account fell into arrears for 30+ days or the account was still in arrears when the card company did the next update with the CRAs.

As matey above says, if the bank have admitted it was their fault then this shouldn't be recorded as a "1" but if they do, they should remove said late marker in light of it being their fault