Default on Credit File

andydunf

Hello all,


I have a default on my credit file from NatWest. It is for around £700 which originates from an account I have not used for years. It was a standard Select account with no overdraft facilities. It would appear it had went under £0.00 and managed to rack up over £700.00 in bank charges.


I know it is probably written in the t&c that they can put so many charges on an account. I thought surely there has to be a limit on the amount of charges they can put on an account? £700.00 is outrageous!


Is there anything I can do to resolve this without actually having to hand over £700.00 to a bank for charges to an account I don't use?

Obviously having this default on my account is stopping me from receiving any credit whatsoever.


Thanks

Tixy

You could try offering them a reduced figure in full & final settlement of the debt.
It wouldn't get the default removed, but would mean it would show that it was no longer outstanding - info/template here - https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Default.aspx

Or you could write to them and ask them for a full breakdown and explanation of the balance and any charges.

CreditCrunchie

According to new bank rulings BCOBS banks cannot treat your unfairly. I believe a debt that is composed entirely of charges is classed as unfair treatment. In a case like this I would certainly not make any offer to pay.

I had a similar situation with Nationwide, although for a lot less money. I wrote out a long letter explaining my circumstances (account was unused, had no overdraft facilities etc, this was impacting on my ability to get a mortgage, causing financial hardship etc), and mentioned all the relavent BCOBS information I could find. Before I sent it though I gave them a quick call and spoke to a suprisingly helpful and sympathetic advisor who agreed to wave all the charges and also wipe a = late payment marker they had put on my credit file. They did this as a "Good will gesture".

Read up on BCOBS then do likewise. You may not be so lucky on the phone but it's worth a shot. Either way, make sure you get something in writing from them confirming what has been agreed.

andydunf

Thanks for the replies.


I'll be sure to read up on BCOBS.


It's been defaulting since December 2012 according to Noddle to the tune of £623.00.


I take it this will have a massive impact on me being able to obtain any kind of credit?


Guess I will read up on BCOBS and start drafting a letter before phoning.

stclair

You would have received umpteen letters/statements regarding the account why? Did you leave it to spiral out of control out of interest.

Thrugelmir

andydunf wrote: »

I know it is probably written in the t&c that they can put so many charges on an account. I thought surely there has to be a limit on the amount of charges they can put on an account? £700.00 is outrageous!

It's your lack of activity to address the issue that's causing the problem. Meanwhile your credit file is getting trashed.

Stop complaining and do something.