Where do I stand with these entries on my credit report?

dazWb

Hi all

Back in 2010 I had some problems where my expenditure exceeded my income for various reasons.

As a result I was exceeding my OD limit on a monthly basis for 4 months. The bank allowed most payments to go through regardless, however there were a couple of bounced Direct Debits.

These months are shown on my credit reports as a "late payment" under my current account, status code 1.

I'm now in a far better position, not in my OD any more. I will be applying for a mortgage next year and need my credit file in the best state possible.

Is the bank correct to apply these markers to my account? Reading their T&Cs, it seems to me that all I did was request an informal overdraft, which was subsequently rejected. My salary would have brought the balance well within my limit within a couple of weeks of exceeding the limit. I paid the charges and carried on.

In fact I have thoroughly read the T&Cs and cannot see that I've broken any terms by requesting informal overdrafts??

Where do I stand, can I request these markers are removed?


Many thanks in advance

fermi

Status code 1 can normally indicate ANY of the following.

• Agreed repayments are one to two months behind.
• Your overdraft balance has been greater than your overdraft limit for one to two months.
• Cheques, direct debits and standing orders may have been bounced to keep the account in order.

I would say the last applies in your case at the very least, so the "1" is probably justified on those criteria.

rising_from_the_ashes

Did you actually request an extension to the OD or did you just let the d/debits bounce / go over your limit without contacting the bank or did you ask for an increased OD, they said no & you still just let it go over it's limit?

AFAIK, if you exceeded your agreed OD limit, then they are entitled to record a late payment marker (as you have broken the agreed terms)

dazWb

Thanks for the super quick replies!

fermi, that last point would apply in my situation.

But, have I really broken any agreed terms?!

The agreed terms are, that I can request an informal overdraft by making a payment which would cause me to exceed my overdraft limit if authorised by the bank. There is a charge for this service.

The DDs bounce, I am charged for them to "consider this", I go on. All in the T&Cs as far as I can see.

Also, if I recall, there were two bounced DDs in two separate months. So why 4 markers on my account?

Two further questions:

- I am doubting that I can request these are removed. Are these considered "minor blips" or are they going to be quite serious in the type of mortgage I can be considered for?

- I opened the bank account in 2002. I can see that records go right back to 2002 on my files. So will these "late payments" in 2010 be with me for the rest of my life? Unless I close the account and wait 6 years?


I'm working on repaying my remaining debts this year and sorting my finances ready for a house and family. I'd hate for these 4 months to affect those plans

Cheers again

rising_from_the_ashes

dazWb wrote: »

But, have I really broken any agreed terms?!

The agreed terms are, that I can request an informal overdraft by making a payment which would cause me to exceed my overdraft limit if authorised by the bank. There is a charge for this service.

The DDs bounce, I am charged for them to "consider this", I go on. All in the T&Cs as far as I can see.

Sorry but you've lost me

An OD is at an agreed limit .... if you go over this limit without authorisation, you have broken the terms of the arrangement.

If a D/debit bounces as you've not enough money in your account .... you've broken the terms of the agreement.

You are not charged for the bank to consider whether they pay the D/debit or not - you are charged for them paying it - but you have still broken the agreement by a) not having enough money to pay it and b) going over your agreed OD limit.

Sorry if I've mis-understood you?

dazWb

Sorry, reading my post I can see why it is confusing!

I did indeed think at first that I had broken the agreement. But after reading the t&c's, I'm not sure.

They state that I have an AGREED overdraft. But, I can also make use of an INFORMAL overdraft. This is where I authorise payments which would cause me to exceed my agreed overdraft. The bank charge me for these each time, £25 iirc, and it is also in the t&c's that I must repay these in 30 days. I have always repaid well within this time limit.

They also charge where DDs are bounced (I still have the letters from the bank which state they have bounced a DD and here is a charge for considering this). So in this case they have opted NOT to grant me an informal overdraft, but my requesting one is not against the terms as far as I can see.

I can't see where I've broken the terms. I've simply made use of a facility which they offer their customers (the informal overdraft facility) and they've made a nice profit from me for my use of this facility as well.

I wish to make clear that I have up until now always assumed that I had broken the terms, and I should take the marks on my credit file as I wasn't managing my money properly. But now I'm having second thoughts.

rising_from_the_ashes

Ohhhh think that's a bit beyond me without having the actual T&Cs to read through in depth.

I don't understand how you can "authorise payments which would cause me to exceed my agreed overdraft" but how "they have opted NOT to grant me an informal overdraft" as that would appear to be a total contradiction..... sorry I can't be of more help.