Please help regarding a dispute with a bank (BH Finance)

BobC87

Evening all,

I have a question regarding a big mistake that BH finance has made, they have admitted this mistake and are offering me compensation, however the compo in offer is way below what I want.

For the last few years my credit rating has been slowly in decline, for no apparent reason. I never really looked into as I put it down to "the recession". I managed to get a car loan in 2010 for 14,000 at 14.5%, (which was really high considering when I was 3 years younger, I got a loan at 7.5%), but was the best I could get at the time. I always paid my bills and met my payments on time, yet I couldnt as much get a credit card now, also my current credit lenders were constantly reducing my limit, again I put it down to the current times.

So around 4-6 months ago I started house hunting, visiting numerous mortgage lenders and also, solicitors and viewing homes. I had 1 dream home that was perfect for the family, yet despite having the deposit in place, no bank would give me a mortgage. My advisor couldnt understand and neither could I. After this I had about 3-4 credit searches on my account and no mortage, the home was bought after we couldnt get a mortgage. This made me get a full credit check and to my amazement I found a DEFAULTED ACCOUNT FOR £3000 next to my name giving me a score of 370, no wonder no one would touch me.

I phoned up BH finance and expressed my concern, and turns out they had put a family members account (with the same name) against my name by mistake, and it has been like that for a few years. The BH guy said it would be ammended imediately, and I said I wanted compensation, he agreed that this would be totally fine.

The most he could offer me was £100, otherwise it would be refered to the complaints dept. After listing all the problems this has caused for me we both agreed that around £1500 would be acceptabel considering;

-Having received a loan from BH finance in 2007 for around 7%, i am now paying a 14% loan. There is surely lost interst to be claimed here? considering i can prove that my credit rating is otherwise faultless so I would have had access to similar rates had they not made this mistake.

-I have lost out on my dream home, due to their error.

-Have been declined 3 mortages, which can be proven.

-I now have numerous credit searches against my name

-Been unable to transfer my current credit cards to an interest free card, again more interest that I wouldnt have had.

-Stress caused to my family due to 4 of us being in a 2 bedroom house due to us not being able to get a mortgage.




So the complaints dept phoned me up and said the most we can offer is £150. If you want to prove that you have 'lost out' then send us evidence and we will get back to you. Now I cant prove I have lost out on numerous credit cards & loans. However I can prove that I have been declined mortgages and should have had access to much better interest rates.

So I am going to gather as much evidence as possible, but I am considering visiting a financial solicitor to see if they will write the letter to see where that gets me, as far as Im concerned, £150 for this mistake which has diverted the course of my life is insulting.

Advice would be much appreciated

Thanks.

[Deleted User]

BobC87 wrote: »

So I am going to gather as much evidence as possible, but I am considering visiting a financial solicitor to see if they will write the letter to see where that gets me, as far as Im concerned, £150 for this mistake which has diverted the course of my life is insulting.

Employing a solicitor might well prove very costly, unless you can sign up to a "no win/no fee".
I'd send your evidence to the Bank and see what they say. If you still don't come to an agreement, you can go to the Financial Ombudsman.

magpiecottage

Unfortunately, there are complainants who try it on. I currently have a case where somebody who is trying to claim £5,000 for time in coming up with some back of a fag packet "calculations".

So I think, in the absence of evidence of a greater loss, £150 for distress and inconvenience is reasonable.

If you are able to produce evidence then it seems likely that the offer would be substantially increased.

Just be aware that if the bank has indicated you have six months to go to the Financial Ombudsman Service that is likely to keep running whilst you continue to attempt your negotiation.

If it expires then you will find you lose the opportunity for it to intervene.

That said, Magpie Cottage only has two bedrooms, four people, two businesses and a cat!