Getting late payment marker removed

catlady12

Hi

My partner has a credit card with MBNA. In June, statement was issued on 22nd, payment due 16th July. We were away over this period. He thought he had a DD set up so didn't realise he had to manually do a payment and had limited access to emails and e banking due to being away. He in fact had had a DD set up but it was accidentally cancelled in December.

Next statement arrives in July and he realises he has missed a payment and it says default notice on it.

This is his first late payment ever and it was paid by 8th August when we realised. However, MBNA have already gone ahead and at end of July just 7 days after due date issued a late payment marker to the CRAs.

We have tried to reason with them and get this removed as it seems very unfair that they penalise a customer of over 16 years for a tiny blip with no opportunity to sort this out first.

We have complained and got nowhere. I know from friends who bank with other credit card companies that they will normally remove such markers (ie only a few days late) as a gesture of goodwill but MBNA seem to be knish for their sharp practices.

We are thinking of taking this to FOS. I am wondering if we can get them on the grounds that they are meant to issue a notice 28 days before reporting defaults. Although it was just a few days late they issued a default notice just a few days after that but gave no opportunity to pay within 28 days before reporting it.

We have a disabled child and needed to do house adaptations next year and I am very worried about this as although both are credit scores are still at the 980 to 999 range I am worried as to how lenders will view a missed payment albeit an isolated one on an an other wise blemish free record .

What are our chances of success at FOS on the grounds I describe above.

YorkshireBoy

I believe the 28 days refers to a default notice in it's true sense, ie 6 months of missed payments and no hope of them getting their money back. Your partner simply defaulted on one payment.

I can't see them changing the factual record of your account management as this would contravene the principles of reciprocity that all lenders sign up to with the CRAs and other lenders.

One late payment shouldn't affect the funding of the house mods next year...especially if you explain the circumstances in an appeal if declined.

980-999 mean nothing, so don't place any importance on those meaningless numbers.

A referral to the FOS would be fruitless. MBNA sent you a bill...you didn't pay it...so they told the CRAs that you hadn't paid it. That's how it works I'm afraid.

Just out of interest, who cancelled the DD and how?

And finally, if you're going away for an extended period it's best to have online access set up and monitor it. What if there had been £5K of fraudulent transactions on there?...were there sufficient funds available to meet the DD (either in full or minimum if that's the DD you had set up)?

catlady12

Well I know other card companies will remove such markers but MBNA are just sticklers. From what I know FOS will also look at what is reasonable.

It was cancelled via our bank we can't recall doing it, it said cancelled by system (there is a fancy word for the system banks use to communicate DD changes to each other which I can't recall) in the letter they wrote us. MBNA claim it was done by ourselves via our bank.

catlady12

I am sure rest of our history is good. 4 years on electoral role, settled accounts on file, no other misses on file at all, only using about 10 percent of our credit, paying off in full most months etc. two mortgage accounts all up to date etc . About 3 or 4 accounts of credit each. Equifax also rates us in excellent category

YorkshireBoy

catlady12 wrote: »

Well I know other card companies will remove such markers

They shouldn't do, for the reason I gave earlier.

From what I know FOS will also look at what is reasonable.

Refer it then.

It was cancelled via our bank we can't recall doing it, it said cancelled by system (there is a fancy word for the system banks use to communicate DD changes to each other which I can't recall) in the letter they wrote us. MBNA claim it was done by ourselves via our bank.

The system is ADDACS...

http://www.smartdebit.co.uk/addacs-reason-codes/

Reason code 0 looks like the one used when the DD becomes 'dormant' after 13 months or whatever. Is that the case here?

Reason code 1 is the one used to say it's been cancelled, or requested to be cancelled via phone for example, by yourself.

catlady12

I remember now it was AUDDIS that they referred to. No reason code given but I believe it wasn't 13 months dormant. MBNA claim we cancelled it which we may have done but I can not remember .

StuC75

It seems reasonable that payment was made late (i.e. not even between the original due date & statement date which can be 'forgiven'), and that when the updated with the CRA's then the payment was overdue.. there is a subtle difference between 'being in default' and 'default notice'..

YorkshireBoy

catlady12 wrote: »

I remember now it was AUDDIS that they referred to.

AUDDIS is the electronic system used to set up DDIs these days.

The report that the bank sent MBNA was an ADDACS report as I said above. Either MBNA have misinformed you or you have misunderstood.

StuC75

Did the statement say that payment would be taken by DD or not.. if the statement claimed dd would be taken then or requested then you may have a case with your own bank ..

catlady12 wrote: »

I remember now it was AUDDIS that they referred to. No reason code given but I believe it wasn't 13 months dormant. MBNA claim we cancelled it which we may have done but I can not remember .

catlady12

The notice we had says default notice on it. As I say we were away and have a severely disabled child hence why we have DDs set up.

I thought under DD guarantee banks had to notify of changes to your payments so does a cancellation not count as that? If we did cancel it was accidental and it is easily done.

catlady12

The bank letter from our bank said cancelled by AUDDIS and they were adamant on the phone that it was an automated cancellation not done by us but MBNA says our back was wrong.

The statement did not say it would be taken by DD.

As I say i know for definite that both barclaycard and M and S will remove payment markers as a goodwill gesture to good customers