Halifax problem - help please.

Rubydog_2

Hello everyone,

This is my first post here - I'm sorry it's so long.

My husband and I have jointly applied for a loan this evening which was declined. I check my experian credit report regularly and my score is excellent, we have a Ok joint income and have been homeowners for 11 years, so I was surprised by the decision.

We then checked my husband's credit report (haven't for years), which states his score is poor. It turns out he has an account with Halifax that he hasn't used for years (5 years+), which is £1.52 overdrawn. The experian report shows that he's missed 13 payments and the account is now defaulted.

We rang Halifax and the advisor said that debit interest has caused the account to become £1.52 overdrawn. He said that he cannot search further back than a year. We have a joint account (again which hasn't been used for years) which is £10 in credit so transferred £1.52 to bring the account into credit.

I file all of our statements etc and I'm certain we haven't received anything from Halifax for years in relation to this account, if we had we would have ensured the debit balance was cleared.

The advisor said that is there is no error on Halifax's part, the marker on experian will remain and that because the account is inactive only yearly statements are sent. The account previously had a overdraft limit of £2750 (which we never used), but this has been removed. We have also never received a letter to this effect.

Obviously this small amount of money has greatly affected our credit score and our abiility to obtain credit (which we wanted to do for some home improvements - much needed), and I wondered if anyone could advise me on how to proceed.

I'm certain we have never been advised that the overdraft was removed, nor that the account was overdrawn, and I wonder how I can appeal this with regards to our credit score? Do you think we should complain to Halifax in writing or contacting Experian, or if not, how long will this remain on our credit report? We're so gutted.

Can anyone help please?

Thanks so much in advance. RubyDog

BugsyBrowne

Make sure you keep your score at excellent at all times.

innovate

Try their complaints people - - but keep it to some sort of "pleading" rather than complaining. The complaints folks will have a lot more room for accommodating you than normal CS.

Hope you can succeed, though it looks a bit nasty.

Rubydog_2

Thanks so much for the reply Innovate. So, do you think it's likely to remain on our credit report? If so, do you know how long it will show up? Is it 6 years?

Thanks again.

McKneff

It is, is it possible for you to get this loan in your name only.

Good luck by the way.

Rubydog_2

McKneff wrote: »

It is, is it possible for you to get this loan in your name only.

Good luck by the way.

I'm not sure if I could take out the loan in my sole name - I work part time, so if the loan company (whoever that may be!) take into account our mortgage payment, I probably don't have enough free income.....?

Ah, we're gutted - and all for £1.52!

innovate

Rubydog wrote: »

Is it 6 years?

Afraid, yes, it's 6 years from the latest entry - - unless you can somehow get the Halifax complaints folks to remove the markers because it's such a small amount. Ask them what you'd have to do for them to show some compassion (though obviously don't accept any unreasonable requests!).

If the normal complaints team can't do anything, you still have the option to plead with the Executive complaints team - - but hopefully the former will find some resolution for you. Come back here if they don't.

McKneff wrote: »

It is, is it possible for you to get this loan in your name only.

If you are not financially associated with your husband on your credit files (which you may or may not be yet - - - but probably are, because of the joint loan application and mortgage), you might be able to get a loan in just your own name, as McKneff suggests.

innovate

Would your mortgage company give you a further advance, perhaps?

Or pop into a bank/building society with your passports and recent bills (for ID verification) and apply in person? You can then explain the £1.52 and might find you get accepted.

Or you could file a "Notice of Correction" on your hubby's credit record, to explain the problem. However, the minute you do that, nothing is likely to go through any automatic processing for the next 6 years, there will always be the need for manual intervention. So this would only be the very very last resort, and it will not guarantee any success.

Have you checked what zopa.com would give you? Careful though, each application for a loan will show on your CRA records, and lots of searches work against you!

As you say, all that hassle for £1.52! Hope the Halifax folks will see sense and have some compassion.

Rubydog_2

Thanks so much Innovate, we really appreciate it.

Do you have any words of wisdom on how to word letter to Halifax? I do remember we paid money into that account before we changed to Natwest but it couldn't have been enough to clear the future debit interest...

Hopefully someone lovely with compassion will deal with it!

Thanks again,

innovate

Instinctively, I'd call them, rather than write to them. But be wary, the official number is an expensive 0845 -- try saynoto0870.com for something less expensive.

Or book an appointment in your local Branch - - face 2 face might be your best chance to start with.

Easier to plead with someone when you talk to them than if they read your letter, in most cases

Rubydog_2

Innovate - would someone at branch level have the authority to do this?

Thanks so much for the advice.