Default on credit report from 2009 - unfair? help!

hollyg86

Hi all,

I'm after a little advice. My partner were I are planning on buying a house next year and I have recently checked my credit report and score to see how things are looking....not good!

In 2009 I was issued with a default on a bank account for an overdraft that went overlimit and then charges were applied.
However in 2008, I moved address and therefore didn't receive any correspondance telling me that all this was happening over a 6 month period.

I had another current account, a savings account and a credit card with this bank, and when I rang to inform them of my change of address, the address change was applied to all other accounts, except for the one in question which resulted in a default.

I have rung the bank today, and they are unable to tell me why after I changed my address with them, correspondance of the default was sent to the old address. It was settled immediately on finding all this out.

The bank say they are unable to remove the default but I feel it is a little unfair as it has reflected so badly on my credit score (384!) and at the time, I thought I had done my part to ensuring all was ok address-wise. Very worried now about the possibility of not being able to get a mortgage, I know it will be removed after 6 years but we had everything in place to buy next year.

The rest of my credit report is gleaming and up to date, I am on the electoral roll, in stable residency and earn a decent income.

Is there anything I can do to improve my credit score relating to this situation?

All help appreciated :j

tinkerbell28

Did you not check on this account at all over the 6 months? When you knew you had an overdraft on the account? Did you not have any money going in? Or did you just leave it and leave it, so charges eventually put you over the limit?

With other accounts with the bank, I don't see how you missed it tbh, so I think you'll just have to wait a little longer.

stclair

Normally for credit cards you have to notify them sepratley of a change of address.

hollyg86

I had no idea to think that there was a problem and it wasn't my main account, it wasn't used very often at all.

tinkerbell28

stclair wrote: »

Normally for credit cards you have to notify them sepratley.

Yes but she already had another current account, savings account and card which changed over fine.

Bank accounts are all linked, so the other account should've automatically gone over.

I have to say op I think you'll have to suck it up. As it is a true reflection of poor management. Not thinking to check on an account you knew had an overdraft with no means to clear it going in. It seems you forgot all about it. So the default is accurate.

Hwhite_2

Hi Hollyg86,

A very similar thing happened to my boyfriend - the bank he was with confirmed that his address had changed, he then changed banks but hadn't closed the old one. He thought everything was fine but forgot to change his account details on his paypal account so a payment went out of his old bank - what he didn't know due to the bank not changing his address and him not receiving any letters, was that they had removed his overdraft facility. Therfore, he went overdrawn as his balance was £0.00.

A stupid move on my bf's side - BUT - if the bank had of changed his details correctly, he would have known as he would have received the letter regarding his overdraft and obviously his bank statement.

Now, we went for a mortgage - he was asked about this bank account - with an arrears of overdraft charges!!! Anyway, to cut a long story straight. We have had to raise this dispute with the Financial Ombudsman. We have managed to prove that the bank have said they changed his address details on a certain date, and managed to track down those letters from his old address to be able to prove that they actually didn't change the address.
My BF was told to put just a £10 a month payment in place to pay the bank charges, which he should then get back. Unfortunately, the bank have so many months to send in their side of the story, etc. It has been with the financial ombudsman now for 4 months. the bank have just had their time to submit their 'info', up to last week, they still hadn't bothered fighting their corner.

This really affected his credit scoring therfore our mortgage application (this has been added onto his complaint with the F.O), we have been told to try again as soon as we have managed to get it cleared, which we have been told is very likely.

I hope this is of some help. You need to gather as much info as possible, we even resorted to going to the bank and complaining to them - asking them to print screen our account history (the date of the address changes).

stclair

tinkerbell28 wrote: »

Yes but she already had another current account, savings account and card which changed over fine.

Bank accounts are all linked, so the other account should've automatically gone over.

I have to say op I think you'll have to suck it up. As it is a true reflection of poor management. Not thinking to check on an account you knew had an overdraft with no means to clear it going in. It seems you forgot all about it. So the default is accurate.

The OP said: I had another current account, a savings account and a credit card with this bank, and when I rang to inform them of my change of address, the address change was applied to all other accounts, except for the one in question which resulted in a default.

Could the OP clarify which account out the three was defaulted?

tinkerbell28

stclair wrote: »

The OP said: I had another current account, a savings account and a credit card with this bank, and when I rang to inform them of my change of address, the address change was applied to all other accounts, except for the one in question which resulted in a default.

Could the OP clarify which account out the three was defaulted?

I think it's obvious, the clue is in the word ANOTHER current account with the bank.

That is saying unless the wording is appalling. It wasn't one of these three accounts. It was the non used one op later describes.

stclair

tinkerbell28 wrote: »

I think it's obvious, the clue is in the word ANOTHER current account with the bank.

That is saying unless the wording is appalling. It wasn't one of these three accounts. It was the non used one op later describes.

I may be reading it different to you. Either way did they not find it odd they had not received a statement in X amount of time.

However if the OP could clarify that would be good

hollyg86

Thank you for your opinions. It was a current account that defaulted. Hwhite its very interesting to read your story, Id be interested to learn of the outcome once it gets there. Sounds like a lot of hassle and faff for you and your chap but hopefully you will have a positive result.
I might think about ringing the ombudsman if only for an opinion of whether or not its worth taking further. Do feel like Im clutching at straws though!!

stclair

hollyg86 wrote: »

Thank you for your opinions. It was a current account that defaulted. Hwhite its very interesting to read your story, Id be interested to learn of the outcome once it gets there. Sounds like a lot of hassle and faff for you and your chap but hopefully you will have a positive result.
I might think about ringing the ombudsman if only for an opinion of whether or not its worth taking further. Do feel like Im clutching at straws though!!

Thank you for the clarification however im at a loss to why after X amount of time you did not realise you never had a statement and the account was missing from your online banking if they was with the same bank.