Calling all first direct customers!

jon_boy75

izools wrote: »

They can.

They know two things when they get the raw data:

1. What status codes mean when referring to a Bank Account
2. The fact that the type of account the "1" is recorded against, is a Bank Account

The distinction between a credit account in arrears, and a bank account run improperly, is that the creditor sees whether it's a bank account or another type of account, that the data refers to.

Lenders are just as concerned about your ability to pay your credit card on time as they are concerned about your ability to ensure you've got enough in the bank to cover instructions set up to debit said account.

Of course it will have a similarly negative effect as a credit card in arrears, because it's an equal level of poor account conduct.

I understand your viewpoint and argument but the fact remains you won't be able to convince the financial institutions concerned that they are wrong - as they aren't.

You'll just have to take it on the chin, move on, and be more careful & vigilant with your current account in future :beer:

Me? Take it on the chin? Not likely!

If there's one thing I know, it's that challenging the banks and their lackeys is a wholly worthwhile endeavour.

Sorry, but I think this behaviour is unfair and heavy handed, so I will challenge it. It doesn't happen to 95% of current account customers (who have these items returned, rarely or not), so I'm not accepting it happening to me. If the banks are hardline and punitive towards me for a minor oversight, I will take the same stance with them.

I will keep y'all posted.

ps: i am always very vigilant and have since moved banks

A_Flock_Of_Sheep

At least I know not to go with HSBC or First Direct.

But the moral is: Don't bounce any items. It is your responsibility to see there is enough to cover your payments. You have the internet now to check, cash points, telephone.

izools

ScarlettsMum wrote: »

Just on a side point the hsbc group are really bad at sticking to experian rules.

"Experian have rules outlined explaining what status codes mean on current accounts when the appear on your credit file:

Any financial institution who uses experian to report and / or search is aware of these rules, so they know that a "1" against a current account doesn't mean "One Payment Late", but that it means that one of the three criteria mentioned in the Experian rulebook have been met by the account holder."

They marked 4 different defaults on my current account when I had never had met any of the three criteria. When I asked them why they said it was because the account was inactive. I pointed out that experian have a different way of recording this and that they had therefore made a false report of a default. To there credit they did remove the defaults (and not record the dormancy) when I brought this up but it was still very frustrating!

ScarlettsMum

Incorrect.

They recorded a Green "D".

This is not a default. It is a dormant marker, and does not count against you. It is not derogatory information.

A default is recorded as a Red "8".

Experian_company_representative

Re current accounts on credit reports, what is shared is info about any overdraft facility (ie credit) you have and how you manage it. As a result, info on basic bank accounts will not be shared as these don't include an overdraft facility.

James Jones

jon_boy75

Experian_company_representative wrote: »

Re current accounts on credit reports, what is shared is info about any overdraft facility (ie credit) you have and how you manage it. As a result, info on basic bank accounts will not be shared as these don't include an overdraft facility.

James Jones

what are the specifics on direct debits, standing orders, cheques etc?

meer53

Would you be having money problems jon_boy75 ? Is that why you're asking these questions ?
What any lender will do is check to see how you operate your accounts, if you're having direct debits returned, then paid the same day, it would indicate poor management of your account as you will be aware that these payments are leaving your account in advance so should make sure that these are not returned in the first place. It's quite possible, and i've seen it done (i work for fd) where, when customers realise that they have had a direct debit returned, they pay in cash from a credit card to cover it. Not a good idea really, bad account management and a recipe for financial disaster.

izools

Experian_company_representative wrote: »

Re current accounts on credit reports, what is shared is info about any overdraft facility (ie credit) you have and how you manage it. As a result, info on basic bank accounts will not be shared as these don't include an overdraft facility.

James Jones

That is not correct. I have seen first hand that the Co-Operative Cashminder, Barclays Bank Cash Card Account, and Lloyds TSB Cash Account all appear on your credit file and these banks report the running of these accounts accordingly.

They simply report the overdraft limit as ZERO.

You really should check your facts before posting.

I'm sure anyone reading this who has one of the basic accounts I mention above will confirm this. I've had all three and can confirm it myself.

jen245

Yep I had a Lloyds TSB basic (cash) account, which shows on both my experian and equifax reports

jon_boy75

meer53 wrote: »

Would you be having money problems jon_boy75 ? Is that why you're asking these questions ?
What any lender will do is check to see how you operate your accounts, if you're having direct debits returned, then paid the same day, it would indicate poor management of your account as you will be aware that these payments are leaving your account in advance so should make sure that these are not returned in the first place. It's quite possible, and i've seen it done (i work for fd) where, when customers realise that they have had a direct debit returned, they pay in cash from a credit card to cover it. Not a good idea really, bad account management and a recipe for financial disaster.

No, I'm not having money problems.

Having operated all of my credit accounts perfectly for a few years now, I was just annoyed to find first direct had reported late payments because direct debits were returned 3 times over the year. On one occassion this was my fault for not paying attention, and in both other instances it was a banking error. However, first direct's position is that if it isn't directly their fault, they won't change a thing or change the late payment status.
I was trying to establish where this rule came from, reporting returned DDs. And I'm fully aware of Experian's guidance on this, however, Experian is just another private company and not an officially sanctioned regulator.
first direct cite the Steering Committee on Recicpricocity (SCOR) and the guidance they give on data sharing, but they obviously assumed I wouldnt actaully read the document, which makes no mention of sharing data on returned direct debits.
So, in summary, i'm making a complaint because first direct have trashed my credit file due to a few direct debits which were succesfully paid a few days later. HSBC/first direct appear to be the only banks to take this heavy handed approach to reporting to the CRAs.

jon_boy75

ignore this post