Advice Needed - Closed Loan kept open for 7 years!

pinkchesh

Hi,

I'm after some advice please.

I took a personal loan with Nationwide back in the summer of 2007. I only had the loan for about 2 months before I paid it off in full and closed the loan account, or so I thought.

It wasn't until the summer of 2009, myself and an ex partner where applying for a mortgage and I got turned down I realised that not all was right. I checked my credit files with Experian and Equifax and they both showed that although I had paid off my Nationwide loan in full and for some reason Nationwide still had my loan account as showing open.

Many phone calls and visits to the local branch and finally they admitted they where at fault and advised me it was a oversight error on their part and it would all be taken care of and amended. they gave me a letter saying what had happened to give to my mortgage lender and that helped and I got the mortgage and I thought that was the end of it.

Well, that was until the end of last year. I got a letter from Nationwide saying I was eligible for a PPI refund. So I filled out the paper work and then got a letter saying I could not have the refund as, yes you guessed it, the loan account was still open. Again may phone calls and I got my refund and they assured me the loan had finally been closed and my credit files amended. So finally this is the end of it you think? Not at all.

I've still been struggling to get any sort of credit and even get a full non credit restricted bank account, heaven forbid me and my current partner should even try for a mortgage. It was brought to my attention recently by my bank that there is still something on my credit files stopping me having the good credit that I should have and guess what that is, yes Nationwide and the loan account that apparently has now been messing up my credit file and rating for 7 years!

I have complained to Nationwide and keep getting promised call backs that never happen. My question is, what else can I do and what should Nationwide be doing for me, am I entitled to ask them for compensation for the adverse effect they've had on my life for 7 years?

Thank-you

[Deleted User]

What exactly does it say on your credit files? Simply having a loan on there would not prevent you from getting a normal curent account.

Is it showing as defaulted? What value is the loan showing as?

pinkchesh

It was showing that I had only made 3 payments on the loan. Even the though I paid the redemption figure that Nationwide gave me to close it and pay it off in full.

[Deleted User]

So it is showing as defaulted? Or open with no balance?

pinkchesh

I think defaulted as it's got green for the months paid and red for all the rest.

Tixy

You say you have made many phonecalls to nationwide. Have you ever actually written a letter of complaint to them?

If not I would do that next and state that if the issue is not resolved and all traces of the account are not removed from your credit files that you will be making a complaint to the FOS.

pinkchesh

I have written to them in the past and again on those occasions I've been told everything is being dealt with.

Today I have received a letter from Nationwide aopologising for not getting this actually done properly on the many occasions in the past and for having a default showing on my credit file for 7 years and for the inconvenience I have gone through in trying to rectify it and offering me £150 in compensation. I feel hugely offended by this offer. After all they admitted they had the default on my account for 7 years and have pretty much ruined my credit history. Should this now be a case for me to take to The Financial Ombusman?

DevCoder

£150-£250 is about the going rate for that kind of mistake.

You can take it to FOS if you wish but I can't see the offering increasing too much.

You should have checked that they had sorted your credit markers out in 2009.

happy_bunny_2

The FOS will take months.

If they remove it, I would just let it go.