Account defaulted - zero notification - credit report black mark...

NoLoan4Me

Short Version:
Natwest student account defaulted - without any notification after being told my account would be open as 0% overdraft until August 2010.
Natwest failed to change my address + gave no information about me having to use the account when I visited in August 2009.
Below is full version, Thanks

Background info:
I was a student up until september 2009 (graduation) and had 2 Student accounts (Natwest & Halifax) - had to get a second account because I didn't receive my student loan (~£3k) for a whole year.

Therefore my Natwest account went un-used for around 18 months.

I started working full-time in August 2009 - and living back home I went into both Natwest + Halifax to change my student address to my home address.

At the same time I enquired with both banks how long my accounts would keep their 0% overdrafts - and was told by both - September 2010 (one year after graduating)

Not until March 2010, when I went to get a new cash card from Natwest, was I told that Natwest had not changed my address. And at the same time, I was informed that my account had defaulted and been handed to a 3rd party debt collection service...

I was told this was because I had not used my card in over 12 months.

Should I not have been informed of this in August 2009 - when they checked my account and said it would remain open for another 12 months? It would have been clear to see that it had not been used in 18 months prior to that then...

And to add insult to injury, they did not change my address, and therefore I received no notifications prior to the default.

I have since paid off the full amount (£1400) in 2 months - something I could have done beore it defaulted, but didnt due to the account being open until August this year.

Am I stuck with this default account on my credit report now - or is there any case for having it reduced?

I have zero chance of getting any loan/credit with this black mark on my report.

Sorry for the wall of text, and look forward to your replies.

Thanks,

Rico6.9

If they're not willing to remove the default as a gesture of good will, the quickest way to remove the default will be a small claim for damage to credit reputation. £5K.
Easy money. You'll need a copy of your credit report and evidence that you've been rejected for credit. If you can't be bothered with court, the simple threat of a small claim quoting Durkin v DSG & HFC should sort it.
Help us all by reporting this to yor next MP.

NoLoan4Me

Thanks for the reply Rico6.9.

The only problem I see is that I have no proof that I went in to change my address in August 2009... if they didn't actually go through with the procedure.

I filled out the exact same form twice! The second time was in March 2010.

And the second point is that the account had gone unused for such a long time - thought I wasn't warned about this in August 2009.

The account defaulted in jan 2010 - so I could have paid the overdraft off before that date had I been informed by post - or when I originally went in the first time.

Are Natwest simply going to turn round and say that a) you didnt inform us of an address change.
and b) you didnt use the overdrawn account for 12months+

Thanks again,

PNPSUKNET

natwest did this with our joint account, changed one name address but not the other.

Rico6.9

Are Natwest simply going to turn round and say that a) you didnt inform us of an address change.
and b) you didnt use the overdrawn account for 12months+

The best people to ask will be Nat West. I doubt the answer will be b. You may even be pleasantly surprised. Or not....

There are people that will help you and there are people that love to make it difficult. It depends who you speak to.

[Deleted User]

Yes, that's very good advice. If you don't get the help u want from the first person u speak to.., go and speak to someone else or ask for the manager/team leader. I once spoke to some really yukky 'lets make this as difficult as possible' person in customer services in my bank. Went back, spoke to someone else and it was all very pleasantly and quickly resolved lol.

jonesMUFCforever

I think the change of address is a red herring here - look at the terms and conditions of your student account - it will be on there that you have to at least credit the account either per term or so many times a year.
That is the reason they have taken your overdraft facility away.

Typhoon2000

And what happened to your statements, did you not notice you weren't getting any? Regardless I agree with the above poster. It would have been in your terms and conditions you signed up to.