Virgin active dispute

JamesSmith2000

Hi all, I had a dispute with Virgin active a couple of years ago. I did sign a years contract, but then my card stopped working, I had all sorts of trouble they admitted it was their fault and in the end I had an appology from them why my card wasnt working even though I was paying it.

They said sorry but it wasnt enough for me. I stopped paying, which is reasonable because I was not getting the service I was paying for.

Anyway that was about 2 years ago. Now I only just noticed when applying for credit I was actually turned down. I thought it was a mistake. Upon further investigation my credit file now shows a default on my gym membership from 2 years ago.

I am tearing my hair out trying to sort this out, been on the phone for ages, nobody has any record of my card not working and all the apologies I got. I never kept any letters or anything it was two years ago.

Is there anything I can do? I would appreciate some good advice what to do about it please?

19lottie82

Sorry but from the sounds of it, this default is factual and correct. You can't just "stop paying" something that you have signed a legal contract agreeing to because you're not happy, this wasn't " reasonable".

Buzby

You cannot unilaterally decide to stop paying simply because 'your card stops working' - you get a replacement, and a free month so you are not disadvantaged.

It appears you didn't seek their assistance is resolving the matter - you just stopped paying then ignored their calls for payment. This was then reflected on your credit file.

Any ability to resolve the issue is now long gone - they took the action they said they would (2 years ago). Only now, when there's something you need you find you've been defaulted. What do you expect they'll do? Even if you pay what you owe, it will not remove the default - just change it from owed to settled.

This situation will happen again if you similarly walk away from any contract - you'll need to be aware of this in your future dealings as it's too late for this one.

JamesSmith2000

OK Im slowly realising there is nothing I can do about that one single little default. But the rest of my credit file is excellent. I know in 4 years it will be gone.

But the problem is the first I heard about this default recorded on my file was recently I was applying for a Santander loan I just assumed there would be no problem, then was shocked when it came back refused.

I still have a large overdraft facility (£2500) and a few cards each with £3000 or £3500 approved.

But I planned on getting this low IR loan and have planned the repayments and everything.

So is there any other options for me, I want to borrow £8000 for about 2 years at the lowest possible IR.

I was thinking about these online websites with private individuals but the IRs are going to be higher, and now I know about this default its going to make it more difficult.

I would really appreciate if someone could offer me some good options I didnt know about or some good advise?

Have I really got to wait another 4 years before I can get any decent credit again?

JamesSmith2000

I didnt speak to anyone at Santander, just the computer says no situation when I applied online.

I have been with them for years and all my wages and bills have been paying with them for year now.

I want to know how much they will lend me at that low rate, the computer says no for £8K maybe I could try £7K?

Or should I wait till tomorrow and speak to someone?

thebritishbloke

JamesSmith2000 wrote: »

I didnt speak to anyone at Santander, just the computer says no situation when I applied online.

I have been with them for years and all my wages and bills have been paying with them for year now.

I want to know how much they will lend me at that low rate, the computer says no for £8K maybe I could try £7K?

Or should I wait till tomorrow and speak to someone?

If you apply again, they'll do another search, and you'll just make your chances of getting a loan less and less likely.

Go in to your branch, explain your situation and ask them to perform a manual application. Under the Data Protection Act you can request to have a person review your credit application rather than a computer. If you explain the situation, they may be more lenient to give you a loan, especially if your internal score with them is good.

JamesSmith2000

thebritishbloke wrote: »

If you apply again, they'll do another search, and you'll just make your chances of getting a loan less and less likely.

Go in to your branch, explain your situation and ask them to perform a manual application. Under the Data Protection Act you can request to have a person review your credit application rather than a computer. If you explain the situation, they may be more lenient to give you a loan, especially if your internal score with them is good.

Very good info thankyou so much. I will do this today.

JamesSmith2000

I have just come back from Santander. They will lend me a smaller amount but not at that low rate I was after.

I explained the situation about the only single default showing on my credit file, just the same as I explained in my first post. It was their fault and they agreed verbally for me to stop paying it as I paid for another gym because of their mistake.

The loans officer said I should be able to clear the default from my credit file if that is the case.

My next step is to go back to virgin active with one of those prove it letters, and explain the situation again.

Is it possible to remove a default from a credit file if they agree to it?

thebritishbloke

JamesSmith2000 wrote: »

I have just come back from Santander. They will lend me a smaller amount but not at that low rate I was after.

I explained the situation about the only single default showing on my credit file, just the same as I explained in my first post. It was their fault and they agreed verbally for me to stop paying it as I paid for another gym because of their mistake.

The loans officer said I should be able to clear the default from my credit file if that is the case.

My next step is to go back to virgin active with one of those prove it letters, and explain the situation again.

Is it possible to remove a default from a credit file if they agree to it?

Probably not, since it's true. You did default on the account, you said yourself that you just decided to stop paying. Just because a company admits they messed up, doesn't mean that you can walk away from a contract.

I don't think you're going to get the loan you want, you're going to have to either accept the higher rate, or wait until the default falls off of your report.

JamesSmith2000

thebritishbloke wrote: »

Probably not, since it's true. You did default on the account, you said yourself that you just decided to stop paying. Just because a company admits they messed up, doesn't mean that you can walk away from a contract.

I don't think you're going to get the loan you want, you're going to have to either accept the higher rate, or wait until the default falls off of your report.

But one default with a note on it explaining everything shouldnt make much difference should it?

Everythuing else is great on my file.

I will try to borrow as much as I can from Santander now, and pay it off quickly, then hope I can get a larger loan at a lower IR next year.

Tixy

Is it possible to remove a default from a credit file if they agree to it?

It is technically possible for virgin active to remove the default if they wanted to (that is if they agreed that you didn't default or had been given incorrect information).

But one default with a note on it explaining everything shouldnt make much difference should it?

With a default on file, even a settled one and with an explanation via a NOC you are still unlikely to be accepted for loans at the advertised representative rates or at particularly good rates.

If the rate you have been offered by your bank is cheaper than some of your cards then it may well make sense to take it and repay some of your most expensive debt on cards or overdraft (sensible providing you don't reuse the cards to run up more debt).