Misleading terms on a Payment arrangement

Jon_Miles_2

I had a Cahoot current account which offered a free £250 overdraft, I had always kept within this Overdraft limit, in October 2011 Cahoot changed their T&C's removing the free overdraft. They did not communicate this to me prior to making this change and I was only made aware when their collections department made contact via telephone.

At the time I wasn't in a position to repay in full and the collections people suggested I enter into a payment arrangement clearing the balance at £60 per month over 4 months, I was assured by the collections team that this would not impact my credit record - I maintained the agreement and the debt was repaid and account closed in May 2012.

Recently I was refused credit and discovered that Cahoot had registered monthly defaults against me during the term of the arrangement period, the credit file entry clearly show my repayments (and outstanding debt reducing) but Cahoot incrementally added 4 consecutive monthly missed payments into the file during the term resulting in a default.

I wrote Cahoot and their response was 'Reporting on bank accounts are in relation to the terms of the account not the level of adherence to the terms of any arrangement reached for restoring an account to its required position'

Surely this can't be right, where is the incentive for people to enter into a repayment arrangement if they get hit with a default anyway….? I'm interest in your thoughts and any advice.

Thanks
Jon

happy_bunny_2

Send it to the FOS if that is their final response.

Did they tell you via an online message? That's how I get told about stuff on my Cahoot current account.

Do you gave any proof or was it sorted on the phone?