Help please removing 'unfair' defaults?

Ktaylor86

Dear All,

I am a new poster to the forum, but would really like some help with removing unfair defaults from a Halifax Overdraft.

In January 2013, I contacted Halifax regarding entering an interest charging period on an old student overdraft (my husband's but I deal with all the finances). I explained that at the time we were unable to make the payments for the full amount of the interest which would have been £30+ a month. And asked them as my husband had been with them for many years whether they could do anything to help. They agreed to not make any charges on the account for interest or charges as long as we paid at least £5 a month off. At this stage the balance was about £30 over the overdraft.

At no stage did Halifax say that they would put defaults on the account or that this agreement would result in any defaulted payments.

We have fortunately just come into some money and been able to clear all our debts including this overdraft a few weeks ago. The reminder of the money we wished to use as a deposit on a house. However upon looking at the credit report from Experian it seems that Halifax have put a default on the account for March & April even though two payments were made in April in order to get the balance below the overdraft limit.

I spoke to Halifax today and raised it as a complaint as it is affected our ability to get a mortgage . They explained it was because he was over the overdraft even though payments were made during these months of £5 and £10 respectively. Halifax have escalated the complaint as I said we were not informed this would occur otherwise we would have paid £30 there and then to get in within the limit to avoid defaults.

So my question is has anyone dealt with a similar situation? and what was the outcome? Also is there any legislation regarding not being informed the defaults will occur, I read something about CCA but didn't understand it.

Many Thanks for any help and advice

K

Tixy

The consumer credit act does not apply to overdrafts.

What default date was added to his file?

The bank do not necessarily have to send out a default notice to file a notice with the credit reference agencies.

However it is worth making a complaint as you have done and saying that you were not informed a default would be filed and that the impact of paying reduced amounts was not fully explained to you, the bank may consider removing the default from your account in those circumstances, perhaps marking it as a '1' and '2' marker respectively for those 2months,

tinkerbell28

I very much doubt you will get the underpayment markers removed. As it is a factual running of your account.

Only cleared because you have now come into money. It is a recent record of your financial management.

Thrugelmir

Ktaylor86 wrote: »

Also is there any legislation regarding not being informed the defaults will occur,

Rather late to say that you would have paid the debt off if you had known.

The whole purpose of credit files is to provide financial institutions with the information to make a proper risk assessment of you as a borrower. Focus now on maintaining a squeaky clean credit record and saving for a deposit. If a mortgage is your aim.

Ktaylor86

Tixy wrote: »

The consumer credit act does not apply to overdrafts.

The bank may consider removing the default from your account in those circumstances, perhaps marking it as a '1' and '2' marker respectively for those 2months,

Thank you re the above.. it already shows as a 1 and 2 maker on the file but is adversely affecting the rating. The makers are shown for April and March this year. So they put it on in March, although I spoke to them about it in January and it became within the limit again in first half of April (8th April).

Thanks for your help and advice everyone... just seems such a shame when we are fortunate enough to be in a position now to buy... but this one thing is holding us back

I do appreciate all your help though... if there is anything I haven't considered please let me know....

Thanks Again

Tixy

Ah - if its only late payment markers rather than a default on your file then you will almost certainly be stuck with them.

Late payment markers won't have such a bad effect for as long as a default. You will likely be able to find a mortgage company still willing to lend to you.

Ktaylor86

Update!!!

Halifax dealt with my complaint within two days and have agreed to remove the two late payment markers from the file as the payment plan was set up incorrectly and should have included increased the limit temporarily to include the interest charge! :beer:

:rotfl::rotfl::rotfl:

The file will be updated within 4-6 weeks then... mortgage time :cool:

Couldn't be happier! They even are crediting us with £50 for the inconvenience! :j

I was super polite in dealing with all of it and I think that helped

_Andy_

Ktaylor86 wrote: »

Update!!!

Halifax dealt with my complaint within two days and have agreed to remove the two late payment markers from the file as the payment plan was set up incorrectly and should have included increased the limit temporarily to include the interest charge! :beer:

:rotfl::rotfl::rotfl:

The file will be updated within 4-6 weeks then... mortgage time :cool:

Couldn't be happier! They even are crediting us with £50 for the inconvenience! :j

I was super polite in dealing with all of it and I think that helped

Nice work! And yep being polite def pays dividends

Good for you