Ex- Credit Analyst - Throw your Credit & Underwriting Q's at me.

Flinty_2

Hi Mike,

I think what you are doing is fantastic!!

I am new to this site but have spent many hours reading your posts!!

I have a question for you sorry it is a bit long winded though...

I was in a mobile contract until Aug 26th this year, I gave my notice on 26th July to them, they said I should call on this date to terminate my contract, my contract ended all fine and I was disconnected on 26th Aug..
Then I receive a bill to pay £24.30 ( I paid previously by DD and wanted to cancel the DD as I knew it would be the last month, so I phoned the network and said I would like to pay by card over the phone (this was on 26th August) and cancel my DD which was due 15th Sept, the lady I spoke to said that I would get this £24.30 minus 3 days line rental credited back to me in a month or so if I carried on with the DD - At this point I was confused and asked why, she said that they bill a month in advance and I have to pay it by DD and it will be credited back in a month or so?

(Would they have done this if I had've left the DD and not queried it?)

I didn't like the sound of this so phoned again, I didn't feel I was getting through to her -ever get that feeling?!

Spoke to another lady she said that's absolutely fine to do, cancel the DD and call near the end of the month to pay the 3 days line rental. So i thought all was ok....

Until I receive a letter from their Collections Department dated 13th Sept-bearing in mind the DD was due on 15th Sept but was cancelled on 26th Aug- the letter said;
They have tried to contact me on several occasions regarding payments owed to them, I have failed to make payment on my account and balance is still overdue.
If the £24.30 is not paid in full on receipt of this letter my account details will be forwarded to a Debt collection agency.

Straight away I called the mobile network and spoke to a guy who seemed very helpful and said this letter shouldn't have even be sent out as it is not even overdue, and he said he will check with the disconnections team that what I had discussed with the previous lady to de regarding paying at the end of month was ok-said he saw the notes and he said he will call me back-which he did and said to ignore the letter, it shouldn't have been sent, and to call up on 23rd sept and pay the balance of 3 days line rental which by then the credit will be on my account.

Then, yesterday I receive a letter dated 21st Sept from a Debt Recovery company saying they have been instructed by their client to recover this amount of £24.30, and a default has been registered against my credit file!!

I contacted the mobile company to discuss this and say what I have been told, the guy I spoke to said I already have a default from last year anyway -which I do not ( I regularly check my credit file ) which he said was due to a late payment! but I have had this contract ongoing for 4 years... I have to call them back on monday as the Collections department was closed by that time ( I was working all day and my partner called me telling me about this letter, I didn't have the necessary paperwork of who I had spoken to so assuming they would be open till 8 like the rest of the teams..)

So my question finally (Sorry!) is can I get this default removed? Am I right in what I have done/been told to do by them? What should I do??

I was told to write a letter to them and report them to Ofcom, which I will do and will go to CAB tomorrow.

Many thanks!

Flinty_2

Sorry forgot to say I have paid the £2.70 balance as the credit was on the account yesterday!! Asked for a receipt to be sent straight away.

Sorry!

Mike_St_Helens

RoyH wrote:

Not exactly in debt but...

Being a pensioner on less than £10K per (living on private income), where can I get a credit card?

Im not too sure I could recommend lenders. But try MBNA possibly, word of warning though, dont miss a payment or be late paying !

Mike_St_Helens

moneywaster wrote:

hiya thanks for your response. i was knocked bact for a credit card so checked experian and they said i had a poor rating!! im just about to clear my two credit cards and close them will this improve my rating? im worried about it when it comes to get a mortgage!!! please help me

thanks,

There must be a reason for a poor rating, could you expand?

By closing the accounts doesnt make the issue go away im afraid, it will be on your credit file for 6 years.

Mike

Mike_St_Helens

terriblesaver wrote:

My mum has just applied on line for a Virgin card to transfer her Barclaycard balance to - she has never had a missed or late payment in her life so any ideas why she has been turned down????

Has she simply asked them, They are quite good They will let her know. Also make sue she gets a copy of her credit file so she can see what is exactly on her credit file.

Mike_St_Helens

leannie wrote:

Hi,
I was really daft at uni and when I graduated didn't get my money stuff together properly I had problems with late payments on a store card (GE capital Bank) but no defaults or anything and the account was settled.
I had a HSBC managed loan (to combine my student overdraft and credit card, after I was unemployed for a few months after graduating) which has now been settled for 6 months after running for 6 years.
I have no other loans but two credit cards, one (Co-Op)which I asked for the credit facility to be removed to take away temptation, the other (MBNA formally Halifax but they sold the account in the summer) is current. Both I pay double the minimum payment on each month.
Last year I had a problem with a catalogue (Studio Cards), I made an order which there was problems with, I finally sent a cheque to pay the balance of £36, the cheque was not cashed but my family life was difficult (death of my Gran) so I totally forgot about it. I then recieved a letter from a debt collection agency to say I had defaulted and I had to pay them the debt, I called them and paid the £36 straight away. But the default is obviously recorded on my credit report.
I am looking into applying for a mortgage and was worried about my rating so have gone to Experian, I am rated 566 and 'poor'.
I noticed some issues with the report (HSBC marked me down as late every month for my loan payment, but they took it straight from my bank by direct debit, a number of multiple credit checks by 'Orange' on the day I took out my phone contract in June, also many linked addressed going back 8 years, and linked address postings with the same address being linked, plus Orange getting my previous address wrong. I have raised queries with Experian for these).
I have maintained all my payments for 12 months (and prior to this, but obviously the default is there), no problems with any of them. I have upgraded my Halifax current account to one with a cheque guarantee card and cheque book, and not used the overdraft facility offered to me on my account. As far as a mortgage goes I have maintained rent payments of over £500 each month, without fail.
What more can I do to increase my rating?
I have a meeting with a mortgage broker from Bradford and Bingley on Saturday, I don't want to look foolish...do you think I stand a chance? If not I will cancel the appointment.

Sorry that this is so late, youve probably had your meeting now. If so how did you get on.

I would have advised that you went to the meeting, there are hundreds of mortgages out there that even bankrupts can have, so you will be fine. Let me know if you need any further info.

Sorry again

Mike_St_Helens

2Princess_Mum wrote:

Hi Mike

I'm a latecomer to this thread, but this is excellent, exactly what I've been looking for in terms of advice. I'm hoping you can help me on this one. If you have asnswered a similar question in this thread please accept my apologies and I'd appreciate if you could direct me to the answer (I'm doing this as quick as poss as I'm on the school run today).

I've taken time out of my working life to have a family (currently expecting 3rd child due Dec). I had been saving for a bigger car as I will need one soon after the baby arrives. At Xmas '05 I had four credit cards, Limits £2000, £1100, £1000 and £350 (the £1000 limit was a balance transfer I took with Lloyds TSB (0% for 9 months), which I used to pay off the £1100 card and closed the account. When I cleared the LTSB I cancelled that too. The Barclaycard I have held for 9 years since I was at college, and had never asked for or been offered a credit limit increase, so when I asked for an increase earlier this year to transfer the balance of my £2000 CC (I owed on that card about £1800 but asked to transfer £1700) I was told it was not possible.

I made a payment recently with my Barclaycard and cleared what was owed before the payment due date. When I called to confirm they had received the payment, which they did, I again asked for a credit limit increase, but as opposed to them doing a credit check, I asked them to see if I was likely to get one, on the basis of the current limit and the fact that I am not working. I was told they could only BT £315, which is of no use to me, so I cancelled the card.

My dilemma is that I want to get a card with a better rate, but because of my employment status I appreciate that my options are limited at best. I am currently paying around £35-45pm in interest on my remaining card. I was making standing order payments of £50pw, but recently changed banks so I now pay at the counter, and pay around £80pm. I'm uncertain of my chances if I ask for a CC with my new bank, as they only have about 2 months of their own records on me in order to make a more favourable decision to support a credit check, but the fact that I do not work will obviously impact on their decision as to my "ability to repay the debt".

I am not keen on using one of the other cards readily available for the unemployed, as we at the other end of the spectrum always get the worst deal, and end up paying more in the longrun.

If you can direct me to where to turn at this point I would be most appreciative.

Thank you in advance
2PM

Hi there... As you know not working wont help matters when applying as most lenders will have a base line of rules that they 'tick' as they go along, ie: age, working, salary etc etc. I used to approve 'housewives/husbands' regulally, as long as both parties had joint credit facilities and were ran well.

Why did you oppose barclays doing a ccredit check? They would have to do this to determine the risk, what i think (may be a long way off) is that when you opened the card when you were at college, they were aware you were at college and to avoid automatic increases places an increase block on the account, thus you never reciving any increases.

MBNA are non judgemental lenders and approve on merit only, have you tried them?

Have you got a good clean credit file? and have you any loans or other credit that may be on your crredit file, taking your overall balances above a certain level?

Cheers Mike

Mike_St_Helens

Frugal_Fox wrote:

Hi Mike,

Just a quick question - or two! Firstly, we are managing to meet our commitments until July - when some cheques I wrote were bounced - I miscalculated DH payday (changes every month). The charges from those cheques caused a severe knock on effect and in the 5 weeks after the cheques bounced Halifax hit us with £1400 bank charges ( I kid you not - we rang to come to an arrangement with them - but they will not help at all, so in effect we have had no income for September) As a result we are now behind on ALL of our commitments, and have just put our house on the market. Would I be right in thinking that instead of clearing the debt instantly with the equity it would be better to clear it month by month - thereby rectifying some of the damage caused to our credit file? I'm thinking over a 12 month period so that the last 'credit' activity on our file shows us as being regular payers etc??

Secondly: I had an MBNA account, in August I received a letter saying there had been some changed to the terms and conditions and also why not consider using my card again - I had cut the card up, but with the above, we decided to get a new card sent out - to use it to meet the commitments for this month, clearing the balance from the equity ( appreciate I'd pay more in interest this way, but I hate being so behind). When I rang the girl said not a problem and the new card would be out in 5-7 days, and did I want one for OH - No! After 8 days, no card, rang to enquire only to be told - actually no, we've changed our mind, you're not having one, and to prevent any other 'silly' letters coming out and telling me I'm a valued customer they would close my account for me??? Will them closing my account affect my credit rating? Also - can they do this? (I'm sure they can, but just seems ridiculous that they'd send a letter saying - use your card, then you phone for one and they so 'computer says no')

A very appreciative FF
x

Hi FF... Ok

Q1 - Have you taken a look at your credit file since the 'issue' some lenders dont report late payments until after 2 months? also not all lenders report so those facilities may not even be on your file. £1400 WOW !!! this is a lot, have you written to them, or been down the charges reclaim route? Also if you are a month behind on all, possibly ask your lenders to come to an arrangement and clear the 'arrears' off bit by bit over a couple of months.

Q2 - A regular one this, OK the right hand doesnt tell the left hand at MBNA. Marketing would do a sweep of all dormant accounts, send letters out and beg people to use tha card again.. You call up and say, OK ill have one. Then the rep orders a card.. This is where it gets complicated, The request is then sent to the credit dept where they look at a matrix of internal and external scores, this is a yes immidiatley, no credit check, or a dunno... If it is a Dunno, you are oassed to the Account Review area, they will then conduct a 'silent' credit check, and simply underwrite the card request as if it were a new application... Therefore if they are not happy at what they see, they dont send a card out. They should write to you to tell you, but as with all banks this doesnt always happen.

Hope that helps...

Mike

Mike_St_Helens

Flinty wrote:

Hi Mike,

I think what you are doing is fantastic!!

I am new to this site but have spent many hours reading your posts!!

I have a question for you sorry it is a bit long winded though...

I was in a mobile contract until Aug 26th this year, I gave my notice on 26th July to them, they said I should call on this date to terminate my contract, my contract ended all fine and I was disconnected on 26th Aug..
Then I receive a bill to pay £24.30 ( I paid previously by DD and wanted to cancel the DD as I knew it would be the last month, so I phoned the network and said I would like to pay by card over the phone (this was on 26th August) and cancel my DD which was due 15th Sept, the lady I spoke to said that I would get this £24.30 minus 3 days line rental credited back to me in a month or so if I carried on with the DD - At this point I was confused and asked why, she said that they bill a month in advance and I have to pay it by DD and it will be credited back in a month or so?

(Would they have done this if I had've left the DD and not queried it?)

I didn't like the sound of this so phoned again, I didn't feel I was getting through to her -ever get that feeling?!

Spoke to another lady she said that's absolutely fine to do, cancel the DD and call near the end of the month to pay the 3 days line rental. So i thought all was ok....

Until I receive a letter from their Collections Department dated 13th Sept-bearing in mind the DD was due on 15th Sept but was cancelled on 26th Aug- the letter said;
They have tried to contact me on several occasions regarding payments owed to them, I have failed to make payment on my account and balance is still overdue.
If the £24.30 is not paid in full on receipt of this letter my account details will be forwarded to a Debt collection agency.

Straight away I called the mobile network and spoke to a guy who seemed very helpful and said this letter shouldn't have even be sent out as it is not even overdue, and he said he will check with the disconnections team that what I had discussed with the previous lady to de regarding paying at the end of month was ok-said he saw the notes and he said he will call me back-which he did and said to ignore the letter, it shouldn't have been sent, and to call up on 23rd sept and pay the balance of 3 days line rental which by then the credit will be on my account.

Then, yesterday I receive a letter dated 21st Sept from a Debt Recovery company saying they have been instructed by their client to recover this amount of £24.30, and a default has been registered against my credit file!!

I contacted the mobile company to discuss this and say what I have been told, the guy I spoke to said I already have a default from last year anyway -which I do not ( I regularly check my credit file ) which he said was due to a late payment! but I have had this contract ongoing for 4 years... I have to call them back on monday as the Collections department was closed by that time ( I was working all day and my partner called me telling me about this letter, I didn't have the necessary paperwork of who I had spoken to so assuming they would be open till 8 like the rest of the teams..)

So my question finally (Sorry!) is can I get this default removed? Am I right in what I have done/been told to do by them? What should I do??

I was told to write a letter to them and report them to Ofcom, which I will do and will go to CAB tomorrow.

Many thanks!

Ok, A minefield mobile contracts....

You do have the legal right to get the default removed if it is found to be their error. I would simply write a very stern letter to head office and demand that it be corrected, throw in a bit about the information commisioner being informed (this costs them a lot of money if he is later in the stages). If you dont succeed then, contact the information commisioner, OFT and im not too sure if ofcom would help as its a billing error.. might be wrong there tho. In the mean time, get your file and check if the default is there, if it is contact the credit ref agency and tell them to place a dispute marker on it. Also ask them their advice also.

Mikey.

LizD_2

Hi Mike

I want to move some of my cc debt to a 0% deal. I've just been turned down for a Virgin card, but was thinking of going for a Capital One card (will cut up card if I get one).

Debt: £2000 Marbles @ 19.9%, £1500 Egg @ 17.9% (just been raised) £500 Mint @ 14.9% (approx)

What would be the best way to do this? I've been late with some of the payments for Marbles, so guess this affects my rating.