Payment one day late

Call_Centre_Monkey

I'm really surprised other companies don't report it automatically. Doesn't seem very responsible lending to me, but of course that's just my opinion.

kenshaz

Call_Centre_Monkey wrote:

I'm really surprised other companies don't report it automatically. Doesn't seem very responsible lending to me, but of course that's just my opinion.

Who would they actually be helping?Why would it not be responsible? Data on individuals is for the benefit of the lender,risk analysis,this site is about the consumer.

Paul_Herring

Call_Centre_Monkey wrote:

I'm really surprised other companies don't report it automatically. Doesn't seem very responsible lending to me, but of course that's just my opinion.

"Responsible lending" these days seems to lean towards hiking interest rates by 50% or more, or reducing credit limits to £1 (yes, one pound) - see threads passim.

Making a late payment (as opposed to blatently missing it) should not really be reported.

kenshaz

Paul_Herring wrote:

"Responsible lending" these days seems to lean towards hiking interest rates by 50% or more, or reducing credit limits to £1 (yes, one pound) - see threads passim.

Making a late payment (as opposed to blatently missing it) should not really be reported.

Report minor late payments ,then react by offering higher rates to borrowers based upon that data,seems commercial to me.

Paul_Herring

kenshaz wrote:

Report minor late payments ,then react by offering higher rates to borrowers based upon that data,seems commercial to me.

Ah - no, that's not quite what I was getting at.

1) I had a late (well strictly speaking it was a non-) payment - I didn't get a bill (or it was mislaid) - I paid over the phone when I noticed a fee on online banking. This never ended up on my CRA report.

2) People with none or few(old) late payments are getting hiked interest rates and reduced limits. For no reason other than "After a review of your account we've decided to hike interest/reduce credit limit."

Barclarcard have slashed my credit limit to £1 !!!!

suefink wrote:

After reading some posts today I decided to check my credit limits on my cards as a lot of people have had their limits reduced suddenly.
To my surprise Barclaycard have done just that to me reducing my limit from £8500 to £1 !!! I am in shock, I cannot believe they have left me with nothing on my emergency card, I havent used it for a few months but have been a customer for over 12 years, why do this without even telling me!!

Barclaycard reduced my limit from £280 to £260!!!!

lynxptc wrote:

I had my Barclaycard limit reduced from £280 to £260! I have had the card for six months exactly and I always pay the bills in full and on time. They put in the letter they sent to me that they have lowered my credit limit "due to our responsible lending policy"!!!

How can their "responsible lending policy" reduce my credit limit if I pay my bill in full? And what difference will a reduction of £20 in available credit make?!!

My increase on my egg card is to go up by six per cent.

me4bargains wrote:

I've just got an email saying they are increasing my rate from 15.9 to 21.9 that's scandalous.
Problem is I have a fraigle credit file.

me4bargains wrote:

I'm literally in tears.
I have been on the phone to them and they could give me no justification for the increase. All he kept taking aboiut was they now do risk assesment.
I have two cards and two loans with them and thay have come to the conclusion to raise my interest by 6 per cent because I made one payment late FIVE years ago.

Call_Centre_Monkey

kenshaz wrote:

Who would they actually be helping?Why would it not be responsible? Data on individuals is for the benefit of the lender,risk analysis,this site is about the consumer.

It's being responsible as far as the customer getting further credit. If a customer is making late payments to an account, it usually indicates they can't manage their credit correctly. If the bank doesn't report it, then the customer could get more credit with another company too, and the same thing happens etc. Before long, the customer gets in trouble with debt.

If the bank do report it, it is showing an accurate reflection on how the customer manages their credit. It may prevent them from getting further credit. Which sometimes is a good thing if it saves them getting hit with less charges and avoids their debt spiralling out of control.

Another good point about banks reporting late payments is that it is a deterent. If there wasn't such a stigma about late fees affecting your credit file I'm pretty sure the amount of people incurring them would rise.

**purplemoon**

But surely there is a vast difference between someone making their "full balance" payment one day late and someone who completely fails to make a minimum payment one month??

The latter situation might indicate possible financial problems, which of course should be reported to CRA's to warn future potential creditors that someone is having difficulty meeting payments, but I fail to see how/why someone with an exemplary payment record who doesn't have any financial difficulty should be penalised the same way for being just one day late in paying

Call_Centre_Monkey

The bottom line is that card companies don't really care about how much you pay, as long as it's over the minimum payment. If a payment is received one day late, no matter if it's the minimum payment or £10,000 over it, the fact is the minimum amount hasn't been paid by the due date. The credit file is there to show payments coming in late to accounts.

Now just say a full payment is one day late, and the payment record is great apart from that. That won't have that big an impact on a persons credit file. If a person is paying more than the minimum but late on a more regular bases, then that would show signs of finanical difficulty (or rather managing ones money), so therefore it would have an effect on future credit.

kenshaz

Call_Centre_Monkey wrote:

The bottom line is that card companies don't really care about how much you pay, as long as it's over the minimum payment. If a payment is received one day late, no matter if it's the minimum payment or £10,000 over it, the fact is the minimum amount hasn't been paid by the due date. The credit file is there to show payments coming in late to accounts.

Now just say a full payment is one day late, and the payment record is great apart from that. That won't have that big an impact on a persons credit file. If a person is paying more than the minimum but late on a more regular bases, then that would show signs of finanical difficulty (or rather managing ones money), so therefore it would have an effect on future credit.

We are talking about an over zealous attitude to reporting minor late payment,accidental or forgetful ,which bear no relation to the borrowers ability to pay ,and yet are recorded,because they can.

Call_Centre_Monkey

kenshaz wrote:

We are talking about an over zealous attitude to reporting minor late payment,accidental or forgetful ,which bear no relation to the borrowers ability to pay ,and yet are recorded,because they can.

Yeah I can understand that, but what I'm getting that is that if it truly is a one off then it won't have much effect anyway. So even if it is just a minor late payment, accidental or forgetful, it's unlikely to have a big impact in the medium to long term.

The trouble is, where do you draw the line? How many late payments does it take to show someone's in financial trouble?