Halifax - Recoveries Indicator

Curr946

Hey Folks,

Not sure if this is the right section.

Ok, I called Halifax after receiving a balance transfer offer on my credit card in October 2011. They refused to accept the BT stating there was a customer indicator relating to recoveries. I asked for more information but they could not provide any.

After a lot for hoohaa I visited my branch who stated none of my accounts (credit card, two current accounts, rack of saving accounts for me and the kids, a loan and home insurance) were in recoveries. They did note that the indicator was their and raised a complaint for me. This complaint was "resolved" according to them stating it was an error due them changing their systems and that it was fixed.

December comes and the online banking is down, I call to make a transfer from my current account to my newly opened virgin card (the one I opened after Halifax refused to accept a BT) and was asked to call recoveries, I did and was told i had no account in recoveries. Annoyed I make a second complaint. Again issue is blamed on their system change and that i had nothing to worry about. (i should point out that all my accounts are still used without issue, including the credit card they refused to accept a BT onto.)

January I am again in branch and decided to question if the indicator is still showing, to which the teller said yes I was looking to see what account it related to. So right away im annoyed. All these people are seeing a prompt but no one can tell me why.

Anyway another complaint raised (3rd time lucky) and Im called (at work by the way) to tell me that i defaulted on a joint current account in 2001.... (joint account with spiteful ex) the guy said but I see you cleared this amount in full in 2002. At which point I ask why this has any baring on my existing accounts, as it hasn't in the past. He said "because we have changed our systems". He said that this marker should not have any baring on any new accounts I open in the future... but as i explained to him.. it already has. To which he replies stating he is sorry but nothing further can be done.

I should point out that in 2002 Halifax agreed not to register the default on my credit file (or remove it) as it was done by the joint account holder during a break up and clearly an act immaturity/deception by said ex.

Here is the key paragraphs from the letter i was sent by Halifax.

"Having investigated this issue i could see that a collections indicator had been placed on your websaver account (number). I believe this was put in place because of an account you held jointly with Miss XXX defaulted in 2001. I note this account was repaid in full early 2002 and your credit file was updated accordingly.

I have removed the indicator from your websaver account and set a reminder for one months time to ensure that this done not reappear on your account as has happened previously. I believe this indicator was added as one of your accounts passed through our collections and recoveries department.

When we access your records i can see a prompt sates "Lending Discretion - Recoveries". I have been assured by our personal lending team that despite being unable to remove this prompt, it will have no affect on any applications for credit.... etc"

so now im lost, he tells me on the phone and in the letter the prompt cant be removed, but that he removed the indicator from the websaver... eh is it just me or am im being messed around.

So something that defaulted 11 years ago, and was cleared in less than 12 months as only recently come back to haunt me...

Do i have any rights here or should i just start to move all my accounts to another bank?

agrinnall

I guess you have two courses of action other than simply moving elsewhere. You could send in a Subject Access Request which would allow you to see everything that they hold on you and might give you more information on what has gone one. Or you could make a formal complaint to Halifax, and if you don't get a satisfactory conclusion after 8 weeks you can complain to the Financial Ombudsman Service.

Flyboy152

I thought credit files only went back six years?

DVardysShadow

Flyboy152 wrote: »

I thought credit files only went back six years?

Ah! The information which is shared by the general credit referencing agencies is limited to 6 years. But a company may rely on its own internally kept information for as long as it likes.

Curr946: I suggest you consider moving banks. You could tell Halifax that the problem with their data is causing you a problem and unless they deal with it, you will move your accounts to leave the data behind. And if you get any more grief, just move banks.

Curr946

Thanks for the replies guys. I have been given the banks final reply so could write to the ombudsman but just wanted to know if you guys thought i had a case. I mean just because they changed their systems should not mean that something they didn't seem to care about in previous years should all of a sudden become such an issue... and to prompt everyone who access my account is just sheer persecution if you ask ask me. It didn't bother them when i opened a loan, or a second current account etc... so why now? and after this long. I mean if i had only just defaulted etc one would expect to be treated differently. I mean i have got married and had three kids this then...

sigh...

DVardysShadow

Curr946 wrote: »

Thanks for the replies guys. I have been given the banks final reply so could write to the ombudsman but just wanted to know if you guys thought i had a case. I mean just because they changed their systems should not mean that something they didn't seem to care about in previous years should all of a sudden become such an issue... and to prompt everyone who access my account is just sheer persecution if you ask ask me. It didn't bother them when i opened a loan, or a second current account etc... so why now? and after this long. I mean if i had only just defaulted etc one would expect to be treated differently. I mean i have got married and had three kids this then...

sigh...

I missed the significance of what I highlighted. In fact I skipped past it on reading your opening post. As this is a prompt which comes up in the face of everyone who deals with your account, I think this may be worth exploring with the Information Commissioner's Office, because arguably your data is being unfairly processed. Start by taking a look at the Data Protection Principles from the Data Protection Act.

And if you do go forward with this matter, I think you need to express yourself very clearly, that the issue is that a prompt comes up in the face of everyone who accesses your data. Not the fact that the data is held. As I see it, Halifax are entitled to hold the data for themselves, even though after 6 years they must not keep the data with a Credit Referencing Agency

Thinking some more, a prompt for when recoveries are currently involved is probably fair. But I think that the ICO would agree that the prompt is unfair for recovery action initiated more than 6 years ago and might even agree that a prompt is unfair immediately a recovery case is fully settled

Curr946

DVardysShadow wrote: »

I missed the significance of what I highlighted. In fact I skipped past it on reading your opening post. As this is a prompt which comes up in the face of everyone who deals with your account, I think this may be worth exploring with the Information Commissioner's Office, because arguably your data is being unfairly processed. Start by taking a look at the Data Protection Principles from the Data Protection Act.

And if you do go forward with this matter, I think you need to express yourself very clearly, that the issue is that a prompt comes up in the face of everyone who accesses your data. Not the fact that the data is held. As I see it, Halifax are entitled to hold the data for themselves, even though after 6 years they must not keep the data with a Credit Referencing Agency

Thinking some more, a prompt for when recoveries are currently involved is probably fair. But I think that the ICO would agree that the prompt is unfair for recovery action initiated more than 6 years ago and might even agree that a prompt is unfair immediately a recovery case is fully settled

Thanks for that, definitely have a look into that.

Flyboy152

DVardysShadow wrote: »

Ah! The information which is shared by the general credit referencing agencies is limited to 6 years. But a company may rely on its own internally kept information for as long as it likes.

Curr946: I suggest you consider moving banks. You could tell Halifax that the problem with their data is causing you a problem and unless they deal with it, you will move your accounts to leave the data behind. And if you get any more grief, just move banks.

Only if it is relevant, accurate and up to date.

Curr946

Well spoke with FOS today and they are going to take on my case. They are posting out forms for to sign...