Botched balance transfer leading to defaults

milanos

Hi everyone, I've recently sorted out a bit of a mess with a balance transfer which was meant to have happened in January with Nationwide taking on the balance of my MBNA card.

To cut a long story short, it didn't happen properly and oblivious to it all, I missed 5 CC payments before it was sorted. No doubt this will have put a massive black mark on my credit file so what are my options for looking at getting it removed/sorted?

I'm not intending to apply for credit of any sort for the next 6 months, but in February I will be re-negotiationg my mortgage and don't want to encounter any issues.

The defaults will have been recorded by MBNA but it was mostly the fault of Nationwide. Any help/suggestions on how to hopefully sort this would be much appreciated.

StuC75

Unfortunately Nationwide would have advised to continue making the contractual payments to the other card until the transfer went through.

Not quite sure how this happened oblivious to all.. It was only Oblivious to you not checking your MBNA Account.

Nationwide will have no power against MBNA to change what is factually correct..

milanos

StuC75 wrote: »

Unfortunately Nationwide would have advised to continue making the contractual payments to the other card until the transfer went through.

Not quite sure how this happened oblivious to all.. It was only Oblivious to you not checking your MBNA Account.

Nationwide will have no power against MBNA to change what is factually correct..

Yes, they did advise that, however I guess I was just under the belief that when they started charging me for the balance then it had been cleared. I do accept responsibility for this.

I moved house 18 months ago we had pretty bad issues with the new house which took up a huge amount of my time from Jan-May this year so i never once checked my MBNA account online in the 5/6 months this was all going on.

To cap it off, I had updated my details with MBNA, however unbeknown to me they had two different address records for me and were sending default letters to my old address.

I realise this sounds a bit far fetched but it's all true and been a bit of a shocker. Was just wondering if there was anything I could try and get done. I think I may have to make a complaint to MBNA based on the address records but if that doesn't work then I guess that's it.

If I can't get it sorted, how big an impact is it likely to have on an otherwise good credit score? (9 years no missed mortgage payments, longer for mobile phone contracts, no other CC defaults and maybe once into unathorised OD on current account per year)

NPHammer

OP - often times I think some of the posters on these forums can be quite harsh towards people who have made poor or unwise choices - I do not wish to sound harsh, but seriously how do you manage to "overlook" 5 missed payments?

5 months is a long time! Why didn't you take the care to make sure the balance transfer had occurred?

In these days of internet banking it's not hard work.

You, I am afraid, are culpable, no one else. The defaults are there to stay as a result of you not taking the care you should have. Taking care of your credit file is your own responsibility. I would be very surprised if you get any goodwill gesture from either of the companies due to how long you have left the matter.

A default will rule you out of almost all of the better mainstream credit offers for 6 years from the date of default.

Thrugelmir

milanos wrote: »

If I can't get it sorted, how big an impact is it likely to have on an otherwise good credit score?

In terms of remortgaging to another lender extremely damaging. Your level of unsecured debt owed and credit available will be factored in as well.

Credit card companies have been trialling reporting of balance transfers to CRA's. As this is another indicator of a borrowers potential financial distress, i.e. inability to withstand an unexpected financial event. As this increases the risk profile significantly.

If you remain with your existing lender then you will not be credit checked for a new product. Though Santander quote retention products and interest rates on a case by case basis.

Using overdraft facilities (and most definately unauthorised overdraft facilities ) will score against you.

milanos

NPHammer wrote: »

OP - often times I think some of the posters on these forums can be quite harsh towards people who have made poor or unwise choices - I do not wish to sound harsh, but seriously how do you manage to "overlook" 5 missed payments?

5 months is a long time! Why didn't you take the care to make sure the balance transfer had occurred?

In these days of internet banking it's not hard work.

You, I am afraid, are culpable, no one else. The defaults are there to stay as a result of you not taking the care you should have. Taking care of your credit file is your own responsibility. I would be very surprised if you get any goodwill gesture from either of the companies due to how long you have left the matter.

A default will rule you out of almost all of the better mainstream credit offers for 6 years from the date of default.

Having to move out the house for the best part of two months shortly after the transfer should have occurred is the reason it slipped my mind. Trying to live out of suitcases at friends/family with 2 kids under 4 took up most of my time to be honest. Anyway, thanks for your concern but I'm getting somewhere with MBNA and the address query.

milanos

Thrugelmir wrote: »

In terms of remortgaging to another lender extremely damaging. Your level of unsecured debt owed and credit available will be factored in as well.

Credit card companies have been trialling reporting of balance transfers to CRA's. As this is another indicator of a borrowers potential financial distress, i.e. inability to withstand an unexpected financial event. As this increases the risk profile significantly.

If you remain with your existing lender then you will not be credit checked for a new product. Though Santander quote retention products and interest rates on a case by case basis.

Using overdraft facilities (and most definately unauthorised overdraft facilities ) will score against you.

Thanks, very informative. Maybe get lucky then as I'd manage to get a better deal than I'm currently on with same provider as I'm now less than 70% LTV