MBNA didnt set up direct debit now i've got poor credit report

viks10

Hello
I am hoping someone can help.
Back in Feb /March, I had missed a payment on my credit card and they phoned me, I paid it and asked for a direct debit to be set up, did it over phone and thought it was all ok, last month got a phone call from them to say I was 3 months late and that the direct debit had not been set up due to a error? They dont know why. Anyway set up another and paid the 3 months but it has come up on m credit report and my mortgage has been refused last week. I spoke to them today to try and get them to remove the marks from my credit score and they said that as I have been getting statements, I should have known and noticed the problem. i will hold my hand up and say I never looked at them but presumed everything was ok as I gave them my bank details. They have told me I can escalate the complaint in writing which I am about to do. We are in Scotland and have concluded missives on the purchase so are legalling bound to buy the house and will be sued if we cant come up with the money. My financial adviser has told me that we may struggle without this being removed so I am in a desperate state to get this sorted. Does anyone have any advice as to what to threaten them with - counter sue etc or have any other advice for me. I feel I am banging my head against a brick wall and not sure what to do.

Thanks
Viks

InsideInsurance

You will basically come up against the question of how much goodwill you have had from them in the past and how good a customer you have been with them (though that counts for less and less these days).

Ultimately it is your responsibility to ensure your card is paid, they will have sent you statements advising your it hasnt been paid, your bank statements would have shown money hasnt been taken out and I would be surprised if they hadn't also sent additional letters saying you hadn't made sufficient payments.

You can go down the official complaints route but your not going to have a strong case and I doubt it will be in the sorts of timescales you require as Final Responses can take up to 8 weeks and then the FOS can add anything up to a year after that.

nomoneytoday

Did you not notice the extra money still in your bank account for 3 months?

Tixy

If this had happened just one month, you would probably have a good chance of explaining you had missed that your statement did not include the 'your minimum payment will be taken by DD on X date' and getting them to remove the markers.

But to not check and read your statements for 3months, or to realise no DD was being paid out out of your bank account is going be harder to convince them it was an error. Threatening to 'counter-sue' or anything will get you nowhere. Writing, apologising, admitting your error, appealing for goodwill and explaining the effect on your mortgage just might get the markers removed. But perhaps not quickly enough for your situation.

It sounds like you already had a least 1 missed payment before you set up the DD, how are you sure that these 3 further missed payments alone are the cause of your mortgage being rejected, or that it would otherwise have been accepted. Perhaps you could try a different mortgage company or an independant broker who might be able to suggest slightly more lenient mortgage companies or subprime lenders you could consider.

exel1966

viks10 wrote: »

Does anyone have any advice as to what to threaten them with - counter sue etc or have any other advice for me. I feel I am banging my head against a brick wall and not sure what to do.

Threatening them with anything, let alone counter sue (LOL) is the sure fire way for them to freeze your account and insist on full repayment. Your request over the phone for a DD will have been recorded. Ask them to trace it, but that doesn't excuse you.

You made an assumption that the DD had been set up and were negligent in that you didn't check to see it was, didn't check your card statements for 3 months and didn't check with your bank.

bengalknights

I would also recommend appealing to MBNAs goodwill instead of going guns blazing, the error lies with yourself not checking your account or the statements.

MBNA are generally a nice company to deal with, the last thing you want is them closing your account and requesting full balance.

viks10

I am sorry, I have taken so long to say, 'thanks' for the advice, with moving house and my lack of paperwork and disorganisation -see above! - I lost my password and track of time and who to thank.

For your info, we managed to get another mortgage and our refusal on the first was definately down to the 3 missed payments, so it shows you how important it is to keep on top of things, I am trying to learn, the hard way!

Am now in process of trying to sort out finances so wish me luck, I need it!

Viks

BadgerFace_2

Glad it's sorted, but your solicitor should never have let you conclude missives without a firm mortgage offer. Recipe for disaster.