Arrangement to pay stopping mortgage application help!

Hazard08

Hello, I'm new to the forum as I have recently hot a stand still with my mortgage application.

Sorry if this is in the wrong section!

Basically last year we took a reserve facility off a bank account from barclays. The charges were horrendous, they would switch it for an overdraft and I was on maternity leave at the time so things were tight as ever. We then switched most of our direct debits over to another account. Well the old account was then hit by a direct debit that we had switched (should have gone out of our new account) which we had just enough money to cover the most recent reserve charges. It then failed to pay the small direct debits we had left on the account causing even more charges. Eventually the account was almost £200 in an unauthorised overdraft caused by a build up of bank charges. This happened in November. We rang up and told them,after receiving a letter to bring the account up to 0, that because of the circumstances we would get the account in the plus on dec 21st as this was when I got a hefty bonus/holiday pay. They said that was absolutely fine. We also paid £50 at that time so it was overdrawn by 144. We done as we said and paid the amount off and the account has been in the plus ever since. I looked at the credit report on experian and saw a status 1 relating to the amount and thought fine that's to be expected. However we recently applied for a mortgage who declined on the grounds of an arrangement to pay being on the credit report. We never entered into a legal agreement to our knowledge but no doubt our phone call to them caused this. The only problem really is that after checking our credit report again I saw the arrangement to pay stating the dates 1/1/2013 until 1/4/2013?? These dates have no relation to anything? What should we do? Please help? We urgently need to know what we can do so we can buy our lovely first home. This is then only thing in the way thanks

Hazard08

Wouldn't change for an overdraft*

Hazard08

Although the arrangement is in writing above the section of green status codes apart from the one 1 orange . Really confusing!

Hominu

So what period did you allow the charges to build up.

When did you finally get the account back in the black.

If these dates are last year I'd be contesting it with the bank (assuming the ATP is for the bank) as they must only report facts.

Of course, even if the ATP was adjusted to last year, you might still not get the mortgage as the bank may think its too soon to apply for more credit when it seemed you were struggling with a smaller sum last year.

Hazard08

From October then got notified in November. Paid in December. The status code is for November. The date of arrangement to pay is 1/1/13 to 1/4/13 however the status codes are all green for these months

Hazard08

Also can they just stick an arrangement to pay on your account without telling you first? The fact that this was all caused by bank charges is horrible. We would have handled this differently if we'd have known. Such a shame we were so naive.

Gromitt

The you need to contact the bank and ask them to correct their submission to your credit report as you believe it contains incorrect information. You may have to do this in writing.

If they refuse then contact the CRA who may contact them on your behalf to discuss it.

Have you checked all CRAs or just the one they said they had used?

Hazard08

Should I phone up their complaints department? We do have an appointment at the branch to discuss this in person. What do you think would be the best way? Thanks

Hazard08

Just experian as that's the one our hopeful mortgage lender looks at.

Gromitt

If you have an appointment then I would definitely discuss it there before submitting a complaint or contacting the CRA.

Thrugelmir

So you are attempting to hide from a potential mortgage lender. That you were struggling to repay a £200 overdraft facility. That's precisely the reason that markers are put on accounts.

Why didn't you use your savings to clear the debt? Then this problem would never had of arisen.