Cleaning up my credit file diary.

hieveryone

This is just a wee diary to put some notes down in case any one is in a similar position to me.

First step of clearing up credit file was asking Barclaycard to remove a late payment marker from last July. A direct debit had failed and payment was made 1 day late, yet I had a marker on my file.

- Sent a message on the secure system, someone called me back and offered to remove it within 2 days - result!


New task: Lloyds
Long story short:
- Used debit card abroad, forgot there was no overdraft on account.
- Account racked up charges, which racked up more charges.
- I was out of the country at the time for a while.
- When I returned the very helpful lady at Lloyds offered to set me up on a Payment Plan that would stop all the charges and let me get out of the vicious circle.
- As the charges had been so high, it took me a while to pay back.
- As a result there is an AP marker from Oct 08 - Jan 10.

Action:
- Sent Lloyds a message on their complaints email 01/08/14
- Received phone call today asking to confirm address and some other details. 02/08/14
- Girl is calling me back to discuss further on Monday.


Hoping for either of these outcomes:
- The account is retrospectively defaulted as if I had missed 6 payments - i.e December 2008, meaning it will fall off December 2014.
- They agree to wipe the whole account from the CRA's.

^^ The second option might actually be viable as I have been reading info regarding defaults and AP's due to the banks own charges being unfair. I was also never told of the impact that this would have on my file, in fact the lady seemed to make it like a big favour to me.

Will update this thread as and when I get more info/results!

anna42hmr

Good luck, but I doubt you will be successful with the lloyds one.

The first one being removed is completely understandable and reasonable where a direct debit the bank has a duty to claim has failed to be claimed, so that would be why the first one has removed

However as for the lloyds one, they are completely right to have the markers on the account and they have a duty to reflect how the account has been handled.

You admit that

1.you used a debit card and took you over the limit.
2.that you had no overdraft in the account.
3.it took you a while to repay the debt (2008-2010)

Why should they remove what has happened and ignore the account conduct history, this mis represents what has happened.

P.s the Supreme Court ruled in the banks favour ref the charges being unfair or not.

hieveryone

anna42hmr wrote: »

Good luck, but I doubt you will be successful with the lloyds one.

The first one being removed is completely understandable and reasonable where a direct debit the bank has a duty to claim has failed to be claimed, so that would be why the first one has removed

However as for the lloyds one, they are completely right to have the markers on the account and they have a duty to reflect how the account has been handled.

You admit that

1.you used a debit card and took you over the limit.
2.that you had no overdraft in the account.
3.it took you a while to repay the debt (2008-2010)

Why should they remove what has happened and ignore the account conduct history, this mis represents what has happened.

Thanks, you can but try!

There are guidelines on the use of an AP and how long the marker should be used for - it states that an AP should be a short term arrangement i.e 6 months and that the use of an AP should not put the customer in a worse position than a default. They let me rack up much longer than that, therefore putting me in a much worse position than if they had just defaulted me.

There are also other guidelines (which I need to investigate further) re: the legalities of a default/AP due to the banks own charges and whether this is lawful or not.

It may be a long shot, but it is worth a try and if you don't ask you don't get as they say

Thrugelmir

Even a defaulted account can be marked as being paid installments.

hieveryone

Thrugelmir wrote: »

Even a defaulted account can be marked as being paid installments.

Thanks,
Am I right in thinking that it falls off 6 years from the date of the default and not necessarily when it was settled? Or have I got that the wrong way around?

I am hoping that by being extremely nice and pleading on the phone that they will remove as a goodwill gesture. Especially given the fact it was not explained to me in the slightest. We shall see

hieveryone

OK had phone call this morning and as expected not much 'can' be done.

Summary
- I did have a £50 overdraft, but went over this.
- Charges were applied on top of charges, continuing the cycle.
- Lloyds suggested a payment plan of £10 a month (:eek:) which I accepted (:eek:)

- Lady today stated the spiel that having an AP is much better than having a default. :rotfl:


Not sure whether to let this go now or not.

Ultimately I will be looking at applying for mortgages probably April/May next year,at which point the AP will be out of date by 5 years - will this make a whole lot of difference?

jamesd

It will make some difference. How much will depend on how much the arrangement was for. The very fussiest lenders will say no but you should still have plenty of choice unless the amount is much larger than appears likely from the description. As usual the deposit amount will also make a difference, low deposit makes lenders more sensitive than high deposit.

hieveryone

Thanks Jamesd.

I honestly can't remember how much it was for. On the terms it says '0 @ £70 monthly', but on the phone she confirmed it was £10 a month (which does ring a bell). Therefore the arrangement amount must only have been £150ish?

No mention of the amount on the details though.

jamesd

Tat sort of amount and that time ago is right at the lower end of what will bother lenders. It'll still be enough to block the fussiest ones, though.

hieveryone

Thanks,

I have a broker who managed to get me an AIP previously so not totally worried - it's more the principle of the thing now!!