Default On Credit Card (Their Fault (or my banks fault)in my opinion)

dkb

Hi.
Not sure this is in the right section so if not I apologise.

I hope someone can help me here please.

The situation is this. I had a direct debit setup to pay off my credit card in full every month. This month I checked as usual to make sure it had gone out. My account had a record of the incoming payment and reduction in balance so I was happy it had gone through. I checked my online account a few days later on something unrelated and the payment hadn’t gone out, my balance had gone back up and I had received a default fee of 12.00.

The default fee isn’t the issue here, the issue is I now have a default 1 missed payment on my credit file.

What appears to have happened is my credit card company requested the full balance as usual but my bank rejected it. Now I didn’t delete the DD at either end and I cannot get an answer from either Santander or First Direct. Santander have refunded the 12.00 but said they cannot do anything about the default on my credit file.

So, what is my course of action to remove a default that has occurred through no fault of my own (in my very humble opinion of course)? I did everything I could (other than pay it manually)to make sure the payment had gone out as usual.
Thanks for any advice
Regards
DKB

bengal-stripe

It is not a default, but a 'late payment' at the most. It might not even get reported to the credit agencies (particular if it was paid before next month's statement got compiled.)

More important for you, why did the bank return the DD unpaid?

dalesrider

So did you have enough funds in the first direct account to cover the amount being requested?

dkb

Ive checked my Equifax and its marked in Yellow with a 1 for 1 late payment in May 2013. Unsure how this affects me going forward.

The amount requested was for £1,039, there was over £2,000 in the account.

I am still awaiting a response as to why the DD was returned unpaid.

YorkshireBoy

Prior to this £1,039 DD pull attempt, when was the last time the DD was called?

And was the £2K you had in there 'cleared funds' ie they were there the day before the DD date?...and not funds paid in by cheque and waiting to clear?

dkb

YorkshireBoy wrote: »

Prior to this £1,039 DD pull attempt, when was the last time the DD was called??

Last months payment went through ok.

YorkshireBoy wrote: »

And was the £2K you had in there 'cleared funds' ie they were there the day before the DD date?...and not funds paid in by cheque and waiting to clear?

Yes. Cleared funds.

YorkshireBoy

dkb wrote: »

So, what is my course of action

Register a formal complaint (in writing) with both banks.

One of them will have to admit liability (hopefully without referral to the FOS and a lengthy wait). Hopefully the fault will lie with Santander, as they're the only ones who can remove the missed payment marker, but if the fault lies with FD then you'll have to agree an appropriate compensation payment/goodwill gesture with them for the damage suffered (including your costs...time at £10/hr and postage etc).

But...I wouldn't worry too much about one late/missed payment on your file. If you're declined credit as a result of it, then appeal citing the reasons behind it, including copies of the correspondence from your formal complaints.

dkb

YorkshireBoy wrote: »

Register a formal complaint (in writing) with both banks.

One of them will have to admit liability (hopefully without referral to the FOS and a lengthy wait). Hopefully the fault will lie with Santander, as they're the only ones who can remove the missed payment marker, but if the fault lies with FD then you'll have to agree an appropriate compensation payment/goodwill gesture with them for the damage suffered (including your costs...time at £10/hr and postage etc).

But...I wouldn't worry too much about one late/missed payment on your file. If you're declined credit as a result of it, then appeal citing the reasons behind it, including copies of the correspondence from your formal complaints.

Thanks

The good thing is I dont need to apply for credit until late next year when I remortgage. Its just annoying that I now have to jump through hoops to get it sorted.

the_insider

Had you carried out any debit card payments in the days prior to the payment being called? If they had been earmarked but not taken from the account then there would not have been sufficient funds for the payment to be taken.

dkb

the_insider wrote: »

Had you carried out any debit card payments in the days prior to the payment being called? If they had been earmarked but not taken from the account then there would not have been sufficient funds for the payment to be taken.

There were some but only out £50 worth. Id still be well in the clear plus I also have an overdraft.

First Direct are supposedly top at customer service but they're really dragging their heels on this one.