Compensation offer from Credit Card company

topgeezafred

I closed a Lloyds TSB Credit Card in November of 2011 after settling the balance in full on 9th November.

I applied for another credit card earlier this month and was very suprised that my application was rejected. I phoned the new card company and asked why and was told that they should not provide specific details but (off the record) advised that it was due to a large balance on an existing credit card.

When I closed the Lloyds TSB card, it was clearing a balance of nearly £10,000. I had no other credit cards at that time so this 'large balance' could only be attributed to Lloyds TSB.

I got a credit report from Experian and sure enough, it showed that Lloyds TSB Credit cards were still reporting that i had an unsettled balance of nearly £10,000 even though I had paid this nearly three months previously! Lloyds had in fact not sent Experian (or the other credit agencies) an updated report on my account for 3 months (the last one they sent was 14th November).

I am aware that this new credit application rejection is going to be on my credit file for 6 years and this is certainly going to have an impact on my score (although Llloyds are trying to play this down as unsignigicant!).

Lloyds have offered me £150 compensation, which I feel is exceptionally low when considering the impact on me and my credit file as a result of their multiple mistakes over three consecutive months.

Has anyone else suffered this type of issue and received compensation for it?

Anyone have any comments or opinion on this?

Thanks
TGF

InsertWittyName

I would suggest that £150 is more than enough compensation.

The search will show on your record, but not the rejection. The searches aren't relevant after a while anyway - no where near 6 years!

It's only when you have a high amount of searches in a short amount of time that it will begin to affect further applications.

Take the money and run before they change their mind!

[Deleted User]

Seems a high offer. They're right about it being insignificant - it won't even show up as a rejection, just a search.

Good result.

scottishblondie

searches drop off after 12 months, so it wont have any lasting impact. One search won't make any difference anyway. I think £150 is more than fair!

opinions4u

Seems about right to me.

Paul_Herring

topgeezafred wrote: »

I am aware that this new credit application rejection is going to be on my credit file for 6 years and this is certainly going to have an impact on my score (although Llloyds are trying to play this down as unsignigicant!).

It's more like it'll be significant for 6 months (and a single search isn't that significant in itself,) and as SB indicated they drop off completely after 12 months.

topgeezafred

Thanks for all of your replies, I've just negotiated compensation up from £150 to £250 and agreed to settle on that figure

Rupert_Bear

InsertWittyName wrote: »

I would suggest that £150 is more than enough compensation.

The search will show on your record, but not the rejection. The searches aren't relevant after a while anyway - no where near 6 years!

It's only when you have a high amount of searches in a short amount of time that it will begin to affect further applications.

Take the money and run before they change their mind!

Good offer and suggest you take it. Remember we the tax payer are paying it!

Ben8282

Why don't you just send the new credit card company a copy of your latest statement showing a nil balance?

Paul_Herring

Ben8282 wrote: »

Why don't you just send the new credit card company a copy of your latest statement showing a nil balance?

1) The last statement was November '11, and since the account was 'closed' the statement probably hasn't been kept.
2) Not all card providers give paper statements
3) The new company won't accept such a statement in preference to what's on file at Experian/Equifax.

topgeezafred

Paul_Herring wrote: »

1) The last statement was November '11, and since the account was 'closed' the statement probably hasn't been kept.
2) Not all card providers give paper statements
3) The new company won't accept such a statement in preference to what's on file at Experian/Equifax.

Correct...I was using online statements only and I agree with you re your point 3.
As I posted above, I've actually negotiated an increased comp payment of £250, so I'm pretty happy about that in all honesty :-)