£16 credit card 'debt' results in declined mortgage

baglinn

Around 12 months ago I repaid my MBNA credit card just before moving home. Although I owed them nothing I advised them I was moving but they continued sending statements to my previous address. The first statement (to my previous address after I moved) included some spurious £16 commission charge despite me never having been in arrears and having cleared my balance the month before. Because they were still using my old address I had no idea and they continued sending monthly statements to that address increasing the amount owed each month and it has now reached around £110. The occupants at my previous address assure me they kept returning these statements to the sender indicating I was no longer there yet MBNA continued to send them to the same address regardless. I had no reason to question the lack of correspondence to my new address since I had cleared my balance. I have only found out now because I was declined for a mortgage and so requested a Credit Report from Experian.

I dispute the whole amount they claim I owe but it pales into insignificance next to my declined mortgage application and I'd sooner pay MBNA in order to get them off my back but the default is already on my file so doubt HSBC (and others) will now entertain my mortgage application anyway. I have never had any other credit problems but now I will be compelled to admit on all future applications that I have been declined.

It all seems so unfair that they can do this despite me clearing my debt and advising them I had moved - surely I have some redress for their negligence in failing to act upon my change of address advice?

exel1966

Commission ? Residual/Trailing interest again. If it is then it's negligence on both sides. Seems to be a theme today, wonder why ?

TadleyBaggie

I think you have been caught by "trailing" interest. When a credit card is paid off in full, there is usually a small interest charge the following month which represents the interest accrued between when the statement was issued and when the payment was made. If this is then paid the following month then the account will be clear and no further payments would be needed.

I assume you didn't set up postal redirection from the old address to the new one?

InsideInsurance

1) DD set up to pay minimum payment for credit cards is an absolute must

2) Moving house it is always sensible to redirect your mail for at least a few months, if nothing else you dont want the new occupants of your old home getting letters that could be very easily used for fraudulant purposes

3) Raise a complaint with them that they have failed to follow your change of address instructions and that you will take the matter to both the FOS and ICO if they do not resolve the complaint appropriately

MABLE

1) DD set up to pay minimum payment for credit cards is an absolute must

Always have a dd in place on my cards for min amount because it gives me flexability. Also cannot understand why anyone who has internet access would want the statements sent in the post.

You have to move with the times and at my advanced age I just like doing my financial affairs on the internet.

chattychappy

InsideInsurance wrote: »

1) DD set up to pay minimum payment for credit cards is an absolute must

MABLE wrote: »

1) DD set up to pay minimum payment for credit cards is an absolute must

No, it certainly isn't "an absolute must".

Continuing to receive and check statements until the balance is zero is the real must.

Then any expected charges can be disputed or paid if correct.

Tiexen

MABLE wrote: »

1) . Also cannot understand why anyone who has internet access would want the statements sent in the post.

Some card companies still won't do paperless.

cos_2

Surely giving the company your new address, and date of moving, should be completely sufficient. If that doesn't work I can't imagine why anyone would think doing the same thing with the Post Office should!

I don't suppose you have any proof that you sent a change of address notification? I can't really imagine what that proof would be, to be honest.

Did you notify any other organisations at the same time? If yes, you could try using that as circumstantial evidence, e.g. show them a utility bill at your new address at a time close to your move.

jonesMUFCforever

OP did you not re-direct your mail?

OP did you not change your address with MBNA?