Default on Bank Account Loan - Help!

navidson

Hello - I am in the process of applying for a mortgage, but something was flagged up on an initial mortgage check. I downloaded my credit report from and there is a default payment on a loan which was taken out with the Natwest.

This happened in 2004 - I was over my overdraft limit and could not work as I was recovering from an operation - I explained this to Natwest but they forced me to take this loan out to cover the overdraft. The account is now long closed but this default charge remains (I also have to add that after looking through my bank statements, it seems that Natwest were charging me twice a month for overdraft fees - a tidy little of £60 per month)

Is there anyway of having this default removed from my file? I would like to complain about the situation but fear that this will fall on deaf ears - The fact that this is now affecting my mortgage application after 5 years is making me both sad and angry!!

thatsean

So you took out the loan and then missed 3 payments - for Natwest to default it? If you missed the payments then the record is factual.

Fiddlestick

navidson wrote: »

This happened in 2004

When in 2004?

It should drop off after 6 years.

AnonymousForObviousReason

With regards to your double fee charges, as long as you don't go down the route of saying they were unfair charges but rather a mistake on their behalf you should be able to get half the money back. If you phoned up you may be able to get them to remove the default for the extra payments (do they even come close to the same value?).

Unfortunately 6 years is the rule so that's why it's hitting your mortgage application, you had the problems and are paying for it now - like a drink driver paying massive insurance 10 years after the offence is done. If you do some research there are ways to try and get defaults removed, but these generally took several months so as mentioned above you may as well wait out the 6 months. You are unlikely to be accepted by the bank you applied for and were rejected (it'll be on their internal files) but won't hurt, so wait to ensure default has gone before you apply to the next bank.

KingElvis

No chance, nearly as a rule, if they were put on for an actual default, they stay for six years....sorry but that's the way it is and helps banks assess who they should be lending too.

It may seem tough but we all have to live to the same rules.