Need advice: Underpaid minimum payment by £3.87

tocs23

Hi,

This is my first post on the forum and any advice would be greatly appreciated. I have several credit accounts, one of which is a Halifax credit card that I've had for years. I have always made substantially more than the minimum payment, well in advance of the monthly payment due date - and have also kept a clean payment history across all other credit accounts. Last month I reduced my regular payment to my credit card as I had other outgoings and, due to a silly oversight, underpaid vs the minimum payment by £3.87. I realised my mistake upon opening my most recent statement, received today, and immediately contacted Halifax. Upon seeing that my payment history is otherwise impeccable, the lady I spoke to advised that she would reverse the £12 charge (listed as 'late payment charge') but that it will still show on my credit report. I have made a payment of £10 to clear the £3.87 arrears on the account and on her advice have already submitted a notice of correction to Experian and Equifax, though my credit report has not yet been updated with details of this particular payment. I'm worried sick as I have a mortgage agreement in principle (also from Halifax) and now don't know whether they will still allow me to borrow. So annoyed with myself for making such a stupid oversight! I have always taken pride in keeping my finances in good order.

brendon

What have you written on your notice of correction?

The_Boss

Experian and Equifax would not remove it as it is a valid entry by Halifax.

What about setting up minimum payment direct debits?

tocs23

Hi Brendon, I have written:

Dear Sir/Madam,
On 13th May 2013, I made a payment of £180 to my account. Although this was 4 days before the due date, due to an oversight, the payment did not meet the minimum required by £3.87. Upon immediate realisation, I have paid an additional £10 towards the account. In light of the fact that my payment history is otherwise impeccable, and that this has been an unusual oversight, Halifax have waived any charges which would otherwise have been applied. I would be grateful if this could be taken into consideration.

tocs23

The_Boss wrote: »

Experian and Equifax would not remove it as it is a valid entry by Halifax.

What about setting up minimum payment direct debits?

Thanks - I normally make more than the minimum repayment, this was a 'one-off' unusual month as I had other payments to make around the same time (deposits for our wedding). I will be going back to making more than the minimum payment from this month onwards again... am usually very good at managing my accounts which has made this all the more frustrating!

[Deleted User]

Yep, that's about as much as you can do. You can't get it removed, because it's factually correct. However, one single missed payment will fall into insignificance over time, just keep making the right payments and keep everything in check from here on in

tocs23

billbennett wrote: »

Yep, that's about as much as you can do. You can't get it removed, because it's factually correct. However, one single missed payment will fall into insignificance over time, just keep making the right payments and keep everything in check from here on in

Thanks Bill, I'm just really concerned about what impact this might have on the mortgage offer I have in principle. My mortgage adviser is due to complete the application over the next few weeks.

R_P_W

Set up a direct debit to pay minimum each mont - then this won't happen

[Deleted User]

Don't work yourself up over it too much. It's a credit record, not a first edition of the bible. One late payment marker in isolation shouldn't have any real impact, !!!! happens after all!

The fact that your mortgage application is with Halifax should be a good thing as you have already explained to them the error. Personally I wouldn't have recommended a notice of correction for something as minor as this. Unfortunately having this on your file means that it is very unlikely that you will get instant decisions for any credit products for a while as your applications will likely be automatically referred so a human underwriter can read the correction.

tocs23

Thank you Lazyloki, hopefully they will recognise this as the genuine (and out of the ordinary) oversight that it was. I have admittedly been working myself up over it all night! Will speak to my mortgage advisor first thing tomorrow morning and take it from there. Thanks again.

Hominu

Indeed, the NOC may affect your ability to get credit for the next year or so (even upto 6 years in some cases), whilst a single missed payment would probably affect it by about 3 months if that.

This is due to the fact that a company can't read your notice of correction, so some automated credit systems will prefer to decline or refer rather than process as normal.

For a mortgage, it'll probably have minimal effect.