Credit file default

mummymayjay

We have just been turned down for a mortgage with our existing mortgage company (for additional lending). The reason is a default on our credit file from Lloyds on our joint current account.

We decided to move our joint current account to FD from Lloyds in January 2012. We moved all of our SO and DD succesfully and stopped using the Lloyds account at the end of February 2012. We could not close the Lloyds account immedietly as it had a £400 overdraft which we could not pay off until June.

On 15 Mar a card payment was authorised for my sons swimming lessons, this made us overdrawn and incurred in the month after the payment (May) charges of £65 and then the following month (June) charges of £80. As with the overdraft we could not pay the charges at the time, Lloyds agreed to an arrangment to increase the overdraft in May to cover the charges. We paid the charges and overdraft off in full in June.

We have now applied for a re-mortgage with our existing lender Woolwich and have been turned down due to adverse credit on our file. We have our credit file and Lloyds have put a default on our current account for the payment which made us overdrawn. The previous months have no issues just the month of June with a default.

I have spoken to Lloyds twice and on the first instance was told the default was because we agreed to pay the overdraft off on the 21st June and I didn't transfer the monies until the 22nd June. I called again yesterday and was advised that it was because of the payment making us overdrawn. The card had been previously used to make the same payment (the term before for swimming lessons) then the merchant bank authorised the payment as it is classed as a standing payment. Lloyds have advised that they can send a form to the credit file company but it will be rejected as it is not a bank error.

I have requested a final repsonse letter from Lloyds so I can take this to the ombusdman.

Can anyone give any advice please.

erimus1

A lender should only put a default notice on your credit file when you are between three and six months late in paying. You have done the wrong thing by asking for the final response letter, you should have been asking for them to remove the default and not pre-empting their response.

A good thing is to tell tell them that you will be making a claim for your losses you have incurred due to their incorrect information.

I do find it very strange that they have placed a default notice so early though - are you sure you have your timeline correct?