Failed standing order credit rating

Chris5110

Hi everyone,

The standing order for the rent failed, as two house mates failed to transfer the funds. I'd left sufficient funds in my account if one forgot ( first time they have forgotten). I couldn't check my bank online as I was abroad without Internet access. Landlord insisted rent came from one account before we could sign the contract. As I was the first they used my account, although I was less than happy but I needed to sign on spot.I've told landlord moving forward it will come from multiple accounts due to this incidence and they were ok luckily

Explained to landlord regardong the missed rent due to the others not paying and they were fine and won't report me or give a bad reference. However I'm concerned this might affect my perfect credit rating. The bank (Santander) waived the fee as I've never had missed payment I my life ( nearly 30yo) so have very solid credit rating.

However will this bounced standing order have any impact on my credit rating? Is this recorded on the credit rating or other bank systems, as I didn't go overdrawn. From what I have read it shouldn't but there apremtly is some banki system some banks use to record this.

Cheers chris

Chris5110

Updated title as was wrong its a standing order issue sorry everyone

FireWyrm

Not that I'm aware of. Rent payments are not reported to credit reference agencies and sometimes, DD's bounce for various reasons. You just get fined and that's the end of it. I'm sure it's nothing to worry about and obviously the bank doesnt believe so either since they have waived the fine.

Standing Orders are controlled by you and are different from DDs

dalesrider

Make the flat mates pay a month up front. So you always have one months rent worth to play with.

innovate

FireWyrm wrote: »

Rent payments are not reported to credit reference agencies

I thought they can now be reported, as of January 2013? Depends on the landlord though IIRC.

EDIT: remembered right:

Rent payments to go on credit files from spring 2013
In March 2012 it was announced rent payments could appear on your Experian credit file by the end of that year. This has been delayed into 2013. This means whether you're on time or late paying rent, it could start to affect your ability to get credit.
The potentially positive impact is that consistently punctual rent payments will appear, boosting your credit history

For more: http://www.moneysavingexpert.com/loans/credit-rating-credit-score

innovate

Chris5110 wrote: »

The standing order for the rent failed.......... ........ as I didn't go overdrawn.

Why did the standing order fail if you didn't go overdrawn? Usually banks just land you with an unarranged overdraft, don't they?

pmduk

The SO wasn't paid at all. The reference to being overdrawn was the OP's question about whether the failed payment would be recorded at a CRA.

innovate

I know the SO wasn't paid.

That's what I don't understand.

Because the OP said he did not go overdrawn - - so obviously there was money in the account then.

It might not have been sufficient money for the SO, but why did the bank not pay the SO and make the account overdrawn?

Wywth

There were insufficient funds in the OP's account to pay the SO.

Therefore the bank would look to either provide an unauthorised overdraft facility (and pay the SO) or decline to pay the SO.

On this occassion, the bank decided to not pay the SO as there were insufficient cleared funds available ... even if the account was otherwise in the black

I don't believe the bank report such defaults to any credit reference agency. (not 100% sure on that - the OP could ask the bank to verify) However, they will apply a charge for such a default.
It may be that the letting agent would report a late/missing payment for rent to one of the credit reference agencies. (OP could verify that by contacting the letting agent)

bengal-stripe

innovate wrote: »

Because the OP said he did not go overdrawn - - so obviously there was money in the account then.

It might not have been sufficient money for the SO, but why did the bank not pay the SO and make the account overdrawn?

Obviously the bank did not want the OP overdrawn to that extend; so they refused to pay the SO. If the OP had five quid in the account, after the rejected SO, s/he still has five quid.

So, the account was never overdrawn.

stclair

bengal-stripe wrote: »

Obviously the bank did not want the OP overdrawn to that extend; so they refused to pay the SO. If the OP had five quid in the account, after the rejected SO, s/he still has five quid.

So, the account was never overdrawn.

The only bank I know of that report this type of activity is the HSBC group.