Bank error causes negative credit rating

Regniere

My son asked his bank (Halifax - Truro) to cancel a direct debit but in error they cancelled all other direct debits.
He queried this at the time but was assured by the bank that all would be ok.
It was not until two comanies contacted him thaqt he learned that an error had been made. Unfortunatley he did not check with his mobile phone operator, this led to Orange issuing a negative credit rating.
The bank subsequently investigated and accepted responsibility but cannot/will not do anything to help with the negative credit rating.
Orange are equally slow at responding despite having a copy of the letter confirming the bank error.
This situation has rolled on for 6 months and neither the bank or Orange appear to interested in helping other than making promises to rectify the error, and in the banks case, offer some token financial compensation rather than resolve the ongoing problem.

My son cannot change bank as he cannot open an account with a negative credit rating nor can he apply for any other credit arrangements and has also been turned down for a mortgage application. Halifax have been unwilling to help by allowing him to open a credit card account - referring to the negative credit rating they were instrumental in creating.
In effect he is being held hostage by his bank and denied the opportunity to manage his finances.
Is there anything he can do, or the bank/Orange should do to assist him.

izools

one single missed payments six months down the line wouldn't make much difference to the outcome of a credit application.

I would suggest he is being declined for credit due to having a credit file that is too thin on the ground, and / or having too many recent searches on his file.

Nevertheless, you should send a formal written complaint to orange along with a copy of the letter from halifax admitting culpability.

Explain precisely what entry you want removed from the credit file, and provide them 28 days to do it.

If they haven't, refer the matter to the Ombudsman Service for Communications and the ICO.

Regniere

Thanks for the advice, will try those two options

The_Boss

What so you mean his 'negative credit rating' or Orange 'issuing a negative credit rating'? I dont get what this means as Orange do not decide how other lenders assess any future applications. Are Halifax talking about somethng specific to them? Has he tried other lenders?