Banks error caused multiple missed payments / default account

vinny3000

Hey guys.

I've accessed my credit report for the first this this week and to my shock its riddled with late payments + a defaulted account (now settled) all from a single month back in 2010.

Back in 2010 i moved banks and all the direct debits should have been transferred over. Due to an error the losing bank didn't set this up causing 9 direct debits to fail, sending my losing account overdrawn (failed DD charges and £5 per day for it exceeding my overdraft limit)

I refused to pay these charges as i wasn't at fault and after passing the complaint around for 4 month between both my new/old bank, my old back accepted they would remove all charges and credit me goodwill.

At this point i thought all was resolved however -

1. My credit report was never updated to remove the defaulted account that's now settled

2. 4 late payments show on my report from the month i transferred accounts

I know due to the time lapse i am probably pushing it to request that this is wiped off my credit file but although my credit is perfect before/after it does have a big effect any mortgage enquirers i make.

For the late payments who would you suggest i contact to try and get these removed - the previous bank or the company i made the miss payment to?

Or is this unfortunately a case of taking this one on the chin?

thx

matttye

The ultimate responsibility in making sure things are paid falls squarely on your shoulders. What you should have done is made sure the direct debits were set up with your new accounts and, if they weren't, you should have made alternative methods of payment. I had to do this when my credit card provider failed to set up a direct debit.

That said, you may be able to convince these lenders to remove the adverse markers as a goodwill gesture. Do you have anything in writing from your old bank accepting that they failed to transfer the direct debits?

The default should probably be removed, as the ICO's guidance on defaults says they should be filed where accounts are in 3-6 months arrears. One month is arguably a little too hasty. Unless it was a payday loan?

I don't think it's a definite that you can get these removed but you have a shot. Good luck!

vinny3000

hi matty

Appreciate your advice on this

This was my feeling and i accept i just took the new banks promise of - don't worry we'll take care of your DD too literally. At the time i was a little laid back with my banking trans, not checking my balances/withdrawals because i knew there was money in to cover it.

I know any new transfer between accounts are more protected by the current account switch guarantee but this happened before this was introduced

And the default is the current account from the bank i moved from that went overdrawn. On the letter correspondence received from the complaint it doesn't admit fault just that as a resolve they would remove all the charges - the complaint was mainly dealt with via phone.

Think the first call is to get the default removed as its whats impacting me the most - after the 4 not so serious late payments which will be a bonus.

thanks again

Thrugelmir

You have to accept a degree of responsibility. The bank accepted there's by refunding the charges. I'm surprised in 9 months that you didn't at least check the account balance or wonder where the money was being taken from to pay the bill that the direct debit was covering.

vinny3000

All my DD go out on the first on the month and all 9 failed on the same day as there was no funds in my previous account.

As soon as i was notified there was a problem (when my mobile was restricted) i called and paid off all 9.

5 of them i managed to catch and pay before before getting marked as a late payment, but 4 of them companies marked it on my credit fine.

happy_bunny_2

Complain to the bank, in writing including what was agreed to resolve the complaint the first time. Tell them to fix your credit file to remove the default.

Take to FOS if they refuse. You shouldn't have to keep the default as they admitted to screwing up.

You could write to the other creditors with the late markers, explain and ask nicely for them to remove the late markers.

simeyb

I know this happended before the 7 day switch thing was introduced, but its a lesson to all about that - if the transfer goes wrong, the new bank will pick up any charges, but no-one has mentioned the impact on someones credit file - even late payments are a pain - when I eventually move, I'll do it myself!

Miss_Marple_2

I also had the same kind of thing.

I had 2 current accounts with NatWest and when I was having an account review type meeting, I agreed with the advisor that probably best to get all DDs and SOs in one place. So she immediately swapped them from one account to another.

I thought nothing more of it until I checked my bank a couple of weeks later and realised that my credit card direct debit had not gone out. I checked further and found my water direct debit didn't go out either.

Of course, when I really thought about it - it was obvious that these were classed as new direct debits and therefore would not be set up in time for any dates due in the week or so after the change.

Fortunately I had made an earlier manual payment on the credit card so no late payment marker, but it did make me realise that I should have kept a closer eye on things and been aware that the DDs would not be collected, although I do think that the bank advisor should have mentioned the possibility and maybe advised that I should be making manual payments for any imminemtly due amounts.