Wavey

Wavey07

Hiya
I'm a newbie to this forum but it seems I may have a a few things in common with more folks than I thought so this now my Number 1 forum !!!

Anyway can anyone tell me If its now the policy of all UK banks to notify Credit reference agencies of failed direct debits as a late or missed payment, even though the organisation to which the payment refers to is up to date & more than happy that payment has been made as soon as the mistake is spotted usually a day or so after you realised your mistake, but more often than not prior to the nice letter telling you how much you now owe the bank for them NOT helping you ??
Very disgruntled !!!

DevCoder

I cannot say that all uk banks do but the majority will. Certainly HSBC, Natwest, Lloyds etc.

As there is not a "failed DD" marker then it normally gets flagged as a missed payment.

Tixy

Usually yes, bounced DDs or exceeding your overdraft limit is marked as a '1' marker on your credit file (or '2' marker if it happens 2months in a row etc).

Some banks don't always for a first, one off 'offence'.

matttye

It's not the bank that reports the conduct of accounts; it's the creditors.

In other words, it's "the organisation to which the payment refers to is up to date & more than happy that payment has been made" that is the one that reports such late payments!

Tixy

matttye wrote: »

It's not the bank that reports the conduct of accounts; it's the creditors.

The bank reports the activity on the bank account. If a direct debit or other payment is bounced then the bank will report that on the bank account activity on the credit report.

matttye

Tixy wrote: »

The bank reports the activity on the bank account. If a direct debit or other payment is bounced then the bank will report that on the bank account activity on the credit report.

Ah didnt realise that.

Does 'other payment' include a bounced debit card transaction? I've had at least one of those with lloyds, yet I have a full green history since I opened the account.

Never had a direct debit bounce.

Thanks

Tixy

matttye wrote: »

Ah didnt realise that.

Does 'other payment' include a bounced debit card transaction? I've had at least one of those with lloyds, yet I have a full green history since I opened the account.

Never had a direct debit bounce.

Thanks

I suspect it could be reported - bounced cheques certainly can be.

This link - the 3rd table shows how credit report markers are used (or can be used) for current accounts.
http://experian.metafaq.com/help/Statutory/Credit_report/status_codes

Wavey07

Thanks Tixy
Your right there is no marker for failed DD ! So the next step for me is to challenge this as its now having an adverse affect on my latest mortgage application ! So the way I see it & the way it appears on my credit file is bank say payment is late or missed but lender say no problem everything up to date no need to litigate. Not sure but I think there may be a song in there somewhere ! But don't worry be happy !! Many thanks will update ya soon !!

Experian_company_representative

Banks can mark a current account entry on your credit report as a 'status 1' under the following circumstances:

- Agreed repayments are up to two months behind
- Your overdraft balance has been greater than your overdraft limit for one to two months
- Cheques, direct debits and standing orders may have been bounced to keep the account in order

So a bounced direct debit can certainly result in adverse information showing on your credit report for your current account, irrespective of what is recorded by the lender affected by the late payment.

James

Tixy

Wavey07 wrote: »

Thanks Tixy
Your right there is no marker for failed DD ! So the next step for me is to challenge this as its now having an adverse affect on my latest mortgage application !

What is it you intend to challenge?
If you have had direct debits bounced then it is correct and acceptable for your bank account to reflect this is the monthly status markers.
If you mean you have had DDs bounced by they haven't put a negative marker on your credit file then that is a bonus and not something you would want to challenge.

Wavey07

Perhaps challenge was not the correct choice of word, what I'm meaning is, what's needed here me thinks is a marker specifically designed for each individual failure, eg. Failed DD or SO that way when lenders are looking at your file its easier to distinguish between a late payment or outstanding payment as opposed to a DD or SO etc failure, like in one of my cases where I realised my mistake & was able to make payment to the organisation to which the failed payment related to but unable to get to a branch of my bank on the same day to adjust funds accordingly. Oh no my head hurts now !!