1 Direct debit bounce, credit rating and aspirations in tatters

joshuarse

Hi guys, basically I have two mortgages one is a buy to let and the other is on my home. I get paid at the end of the month like most and my Direct debit for my mortgages is set up for a few days after. My problem started when I got paid, transfered required amount into my account and a bit extra as usual. Mortgages didnt go out because there was a bank holiday. So next bank working day comes round and there is a ream of them that come off in a day and low and behold my account empties leaving one of my mortgage payments unpaid. Let me stress I was in more than a sound financial position at the time.
Soon as I found out I was straight on the phone to the bank RBS who said its absolutely nothing to worry about (after I offered to pay on my debit card or do a faster payment. They said they would simply represent the DD in 14 days and that will be the end of this. I am very paranoid about my credit rating and fiscal responsibility so this was obviously the first question I asked. " There will be nothing reported negatively if the next payment is met I was told." DD was represented, I was charged £35 (which I thought was fair enough because it was my fault) and I thought all was well. Then yesterday I get an equifax update through email (because I subscribe) saying there has been an update to my credit file. You can guess what I was met with. 1 month late showing in my report, check my rating and it has gone from good to very poor.
What is my course of action, Im 20 years old and have basically done everything right. Im so paranoid about my credit rating its not funny and its making me lose sleep that I wont be able to get a new mortgage for a long long time or remortgage when I come to the end of my deal. So my questions are.

1. Why would RBS tell me one thing and then do another. The effect of this is going to be devastating for me.

2. If RBS refuse to change the credit file when I ring them on monday (would they do this to me?) how long am I shafted for in terms of getting mortgages and other types of credit.

3. Is it usual procedure to ruin peoples aspirations for making one mistake because this is what I feel RBS have done to me. I want to continue to build a small property portfolio, I have a 25% deposit ready for the next one.

Please help!!

Regards

Josh

joshuarse

Anybody got any advice?

dimbo61

Ring them on Monday and follow this up with a letter to the chief exec complaining about the handling of your account and request for the credit file to be sorted.
Put complain in writing and then follow up with letter to the FSA

pink_pirlie

I missed a mortgage payment in similar situation to you a year ago. I called the bank, paid the mortgage then and there, but as I didn't notice until the 2nd of the following month I was effectively 1 month in arrears therefore this went on my credit report.

I have recently had to remortgage the property after I split with my boyfriend in order to take it on in my own right, and have been approved.

When I completed all the applicationforms they asked if I had been in arrears for more than 3 months - which in both our cases we were not.

I wouldn't worry as much as you are - it's definitely not worth losing sleep over.

I would question when you repaid the DD though - was it the same month as the payment was due, or the following month?

I understood that so long as it was within the same month as the payment is due it doesn't matter which day the payment takes place - ie if payment is missed on 28th and you notice and pay on 29th you would NOT be in arrears, but if don't pay until say, the 3rd of the following month, you would then be one month in arrears as you didn't make a payment in one particular month. If you did make a payment in the correct month I would question with your bank whether you were actually in arrears. But note, I pay by bank transfer not DD so this may change things.

Hope that helps and calms your nerves!

joshuarse

So will the bank change it for me then? This would obviously be my best bet.

Regards

Josh

Jojo1daffy

I had a similar thing happen to me. I wrote in and described what had happened etc and requested my credit file was corrected. They wrote back saying 'no problem' and it was done.
Don't worry about it.

joshuarse

Spoke to the bank and all is well, they actually said sorry to me!!