'with collections' indicator been placed on account. No one at bank knows why.

giixwiix

Hi,

I'm new here so please be gentle!

I recently have been looking into ways of becoming debt free. I have an overdraft hangover from my student days and a small credit card debt which I can't seem to get out of. As a result I have been looking into any discrepancies that could hinder my credit score as I feel I will have to borrow to consolidate my debt and then make disciplined monthly payments to get rid of it.

However, when I spoke to my bank, it was mistakenly revealed to me that I was labelled as "with collections". What I mean by mistakenly is that apparently I wasn't supposed to know, which is what someone in financial management with the bank told me. I protested against this indicator on my account as I am not in arrears and haven't gone over my overdraft limit for about 8 years (since I was a student). No one in the bank, even in the collections department can understand the indicator. Collections even insisted I was not 'with them' and passed me on to financial management.

I went in branch today and the man in there was very helpful, calling everyone and trying to work it out in the hope of removing the indicator as it prevents me from getting any credit in the future with the bank (even though the indicator states I am low risk, which I saw from a sneek peek at the screen).

The person on the other end of the phone indicated that it may be because there is 'legal action' on my account in 2007, which is basically when I successfully claimed my charges back. The man in the bank agreed with this. However no one is sure and no one knows how to get it off. I was told to bring in my experian credit score print out and maybe that would help.

Does anyone have any other tips? Or have you heard of this happening before ?

innovate

Getting your Experian credit report sounds a good idea. The Experian credit score is not worth anything because no bank will use it.

When you know what is on your credit report, your best course of action might well be to open a bank account elsewhere. Hopefully it doesn't look too bad but if it does, you have a problem at your hands.

Perhaps hop over to the Debtfree wannabee board, people over there know better what sort of things can be done to get out of debt.

giixwiix

Thanks,

I got my report last week and everything is good. There are no defaults or anything. The only thing that was missing was my electoral role which experian hadn't updated. Hopefully by tomorrow it will be so and I can take it in.

It's all a bit of a pain and a little kafkaesque, as no one at the bank knows whats going on or how to sort it. But let's see after i take my report in. It's just crazy i had this big black mark against my name that I was never supposed to know about. especially at a place I have banked with for 12 years. Well if worst comes to worst, I can pay off my agreed overdraft and move somewhere else that I have more of a future with.

giixwiix

PS. On my report my bank has listed all my dealings with them as being cool with no problems. or should I say 'satisfactory' in a friendly green colour. with no problems or defaults.

jonesMUFCforever

In collections is an internal indicatore meaning the specialised department is responsible for the managing of your account. This is not reported externally to the CRA's.

The only sure way to get rid of it is to pay back the debt.

giixwiix

when you say specialised department do you mean the collections department? If so, i am not in arrears and the collections department at the bank have rightly said they are not dealing with my account and have no idea why this indicator is there...

what I am trying to say there is no debt to pay back (apart from the sum of my agreed overdraft I always use which i want to pay back to be debt free)

innovate

That's good news about your credit file, it leaves you free to go to another bank.

I don't believe for a second that your bank don't know why that indicator is on your file. If they had no reason to have it on, they'd by now have removed it. They are giving you the runaround. Which bank are we talking about, btw? Barclays?

Vote with your feet, there are plenty of other banks/BSs where you can get a new account. Keep your old account open, though - - it's always good to be able to say you had a current account for xx years.

giixwiix

It's the Halifax. It was a bit weird that the reason the man gave was that it could be because I successfully claimed charges back in 2007. But yes, if it can't be removed I'll switch.

stclair

If you have no previous or current debt with the bank, have you considered possibly sending them a SAR?

giixwiix

stclair wrote: »

If you have no previous or current debt with the bank, have you considered possibly sending them a SAR?

I am currently within my agreed overdraft limit so I do owe them something. What is a SAR?

stclair

giixwiix wrote: »

I am currently within my agreed overdraft limit so I do owe them something. What is a SAR?

Sorry a "Subject Access Request" if you pay £10.00 the bank will provide all information they have about you.

Maybe their is an old note on your account which explains why the marker was put on in the first place.

It might be a long shot but hey....