Is this legal and what can I do? - Locked into CC by banks errors

Comedy

OK, just the important points..

I have my Credit Card, Current Account and Loan with the same bank. I have a small mortgage on a large property and I pay all my bills on time, always.

Due to an admin error at the bank (which they've fully acknowledged) they cancelled the Direct Debits for both my Credit Card and Loan. This was in August last year.

I've been back and forth having badgering calls from collections, calls from customer services apologising, calls to set up Direct Debits again, calls to say they were cancelled, etc, etc.

We're now at the point where the bills are going out again. I got a formal apology for my hassles, assured everything was put right and offered a couple of hundred quid.

To be honest, for the amount of work and stress I've had to deal with on these issues a couple of hundred quid doesn't cut it for me. I've explained that if they want me to feel valued they will need to make an offer of something that makes me feel valued.

After having a few more doubts I decided to check my credit file to see what they have actually done. My credit score has dropped from high 800's now to low 400's due to them reporting me as being late with all my bills. This is all while I'm receiving letters from them saying that they are sorry and won't be doing this.

Finally, and this one is great, because I have 'bad credit' now they've raised the interest rate on my credit card!


So, my questions are:

For close to 5 months of constant collection letters, phone calls, correspondence, etc. What should I be asking for.

For the harm done to my credit, which is stopping me from getting credit elsewhere (and also a mortgage), what should I ask for.


From the amount of time I've put in I am expecting them to give me at least 500 for the first. For the second I do not know. I would have thought it a crime to lock a customer in in this way and I will report it but they've causing me real problems now with moving home.

Consumerist

I think, perhaps, you should lodge a formal written complaint.

Explain to the offending bank what the consequences of their error has been and insist they put it right. In the meantime, you are entitled to put a comment on your credit files explaining what has happened.

You should ask the bank to contact the affected payees to repair your credit record.

If you are not satisfied with the bank's response or they don't respond within eight weeks then you can refer the complaint to the Financial Ombudsman Service. The FOS can award compensation.

Fruit_and_Nut_Case

OP: You don't give the name of the bank. It's not Santander by any chance?

izools

Fruit_and_Nut_Case wrote: »

OP: You don't give the name of the bank. It's not Santander by any chance?

You know, as I was reading Consumerist's reply I was about to ask the exact same question.

Looks like you beat me to it! :rotfl: :beer:

Hax

Comedy wrote: »

For close to 5 months of constant collection letters, phone calls, correspondence, etc. What should I be asking for.

Why did this go on for five months? Surely the first collection letter/phone call would have been enough to prompt you to bring your accounts back up to date and reinstate the direct debits - thereby avoiding further collection letters/etc and avoiding most of the detrimental markers to your credit report?

With regards the increased interest rate on your credit card, you can refuse the rate rise within 30 days (or is it 60 now?) as which point, the account is closed to new borrowing and you continue to pay back the debt at the previous interest rate.