Overdraft Problem

Paddy_Boy

Hi there, my other half encountered a problem last week, when she got paid she transfered money from her current account to the bills account as normal, however she has just changed banks and forgot she had set up a standing order to do the same transfer 2 days later. This took her over her overdraft limit by £40, the transfer was paid and when she noticed this the next day she transfered funds to put her account in credit as she has never used any over draft facity before!

Regardless of any charges, what implications for her credit score etc will this have?

Many Thanks

YorkshireBoy

Paddy_Boy wrote: »

what implications for her credit score etc will this have?

It depends on the bank's policy, and use/interpretation of the CRA number codes* available to them, but they could place a '1' on her credit file.

http://www.experian.co.uk/downloads/consumer/YCREJul08.pdf (page 15)

If you'd like to know for sure, just wait a couple of months and order your credit reports.


* You'll see (from the table above) that none of those examples fit her transgression perfectly.

Paddy_Boy

Thanks for that, I suppose then we are just gonna have to wait a few months like you say and apply for credit reports.

How likely are they to place a 1 on her file considering her account is only ever in credit and that this has never hapened before in her credit history? Only reason any of the overdraft was used was by error, but I suppose they wont think like that?

What would the implications of a 1 be?

YorkshireBoy

Paddy_Boy wrote: »

How likely are they to place a 1 on her file considering her account is only ever in credit and that this has never hapened before in her credit history?

I have no idea. In 30+ years of banking I've never gone unauthorised overdrawn...thankfully!

However, in order to get an answer, based on anecdotal evidence and FACT, then you'd be best to say which bank it was.

Only reason any of the overdraft was used was by error, but I suppose they wont think like that?

Computers don't "think".

What would the implications of a 1 be?

Hopefully it'll just be a blip on an otherwise good history...and will mean nothing after a while (if indeed it does now?).

Experian_company_representative

You could also ask the current account provider what their specific policy is on this. They should be able to tell you whether they will register adverse information on this occasion.

James Jones