Default on bank account advise

Biker916

I had a bank account with a £1,500 overdraft on it and a savings account with Cahoot, which is purely an online bank. I didn't really use it much so I moved everything over to another current account. I cleared the balance and asked the account to be closed down, I did this all online. I was already in the process of changing my email accounts from hotmail to gmail and this account was on hotmail. At the same time I stopped using this email account.

What I didn't realise was I had a continuous authority on the debit card for a £9.99 napster subscription that I also didn't use anymore and never got round to closing it. Because I didn't see the transaction on my current account statement I forgot all about it. It took a couple years to take the account over my agreed overdraft and then the bank waited 6 more months before changing my account to being defaulted.

It was shortly after that I checked my credit file and noticed the default. I paid off the balance, but I still have a default notice on the account. They also sent me a new bank card.

Can I have an active account that is also defaulted. I'm thinking of using the card so Cahoot update my account with a normal active status overriding the default status. Will this work? Or have they sent out the card by mistake. My online account is now locked, so I can't do anything on there.

Any advise on what I should do?

InsideInsurance

I find it amazing how many people close credit cards/ loans/ bank accounts and immediately switch to using another email address and never check the old one again.

What do you actually want to achieve? You say you've cleared the balance. Are you wanting them to close the account again or are you intending to start using it again?

Biker916

I would like to remove the default notice without having to wait seven years. I have no interest in using the account again, unless I need to, to force the status to change.

happy_bunny_2

You could try writing to them explaining why it happened and ask to remove the default. slim chance though. Using the account is very unlikely to change the default status

Biker916

Thanks for the advise.

Now the balance is cleared, if the default notice remains, what will future creditors see? Will they only look at defaults in the last 12 months or longer, does it vary by company. Also do they look at the default date or the default satisfied date?

inmypocketnottheirs

Sorry but a Default is a red rag to the finance industry. Until this drops off your file you will be treated like a financial leper, unless you can prove the Default was not properly served, very hard to do.

opinions4u

inmypocketnottheirs wrote: »

Sorry but a Default is a red rag to the finance industry. Until this drops off your file you will be treated like a financial leper, unless you can prove the Default was not properly served, very hard to do.

The older it gets, the less significant the impact will be.

Biker916

If this is the only blemish on my credit file for 6 years and the default date is 18 months old with the satisfied date only a month old. How long should I leave it before;

a) re-mortgaging,
b) getting a personal loan
c) leasing a car

These are the only things I can see myself needing credit for in the next couple of years.

Thanks again for all your advise.

chanz4

a) broker
b) not going to happen
c) slim chance