Default - fees/interest refunded but on credit file

Fi100

Hi all

I'd really appreciate some advice on this. I transferred a small sum to a 0% credit card, but made an error in setting up a standing order correctly (omitted the ref number), which meant that the payment left my account but was immediately returned on the same day. I only discovered this when I returned from holiday and realised that I had defaulted with fees and interest charged and the loss of my 0% deal.

Devastated, I the CC company to explain. This was my stupid mistake. They were very understanding and agreed to refund the default sum, interest charged and return me to 0%.

My problem is that this default is now on my credit file and I am in the process of getting a mortgage. I have asked the CC company to please consider reemoving this from my file but they have stated they can only do this if it is a banking error (confirmed in writing from my bank).

This is my stupid fault not the bank's. And i have now made good all payments and set up a DD to esnure it does not happen again.

My credit history is good. I have learned my lesson with standing orders. Is there any way I can persaude them to remove this? This is so important to me that I am an emotional wreck over it.

Thanks for reading

The_Boss

If you've tried and they've said no, then no.

But you say you have a good credit history. When you talk about a default/default fee I assume you are actually only talking about one late payment than an actual default? If so, this will have a small impact if it is the only one on your file but nothing serious to worry about.

The action you've taken has been very responsible, I'm sure an underwriter would not be hugely concerned over an isolated incident if there's nothing else on file.

Fi100

Yes that's right. It was just one late payment due to the incorrect setting up of the SO for the first payment in July, and this is now rectified.

They suggested I write a comment beside the default entry on my credit file to explain, but I thought that since mortgage providers are much more strict in their lending that this bad mark on my file would mean an automatic rejection, regardless of anything I write?

ChopperST

Fi100 wrote: »

Yes that's right. It was just one late payment due to the incorrect setting up of the SO for the first payment in July, and this is now rectified.

They suggested I write a comment beside the default entry on my credit file to explain, but I thought that since mortgage providers are much more strict in their lending that this bad mark on my file would mean an automatic rejection, regardless of anything I write?

You are confusing a late payment with a default.

You haven't defaulted you've made 1 late payment.

Fi100

Ah am confused then. They charged a "late default sum". I am obviously a numpty and dont even understand the terminology.

Should I be worried about this late payment remaining on my credit file? Ps appreciate your patience and advice

The_Boss

As before, nothing to especially worry about if it's the only one.

Putting a notice of correction on there can delay future credit applications. I wouldn't bother.

Fi100

That's good to know.

Thanks Boss - you're a credit to MSE