Bad Credit Rating, False Report from Bank

kc7020

Hello folks. I've recently noticed that I have a bad credit rating, and the reason why is as follows:

I left the UK 2 years ago and migrated to Australia. Prior to going away I took out a 1000 pound overdraft and used that to live for 3 weeks before flying out.

During July of 2013 I called up the bank whom I had the overdraft with and asked if there was any outstanding debt I owed them. I had money sitting a-side to cover it if it was there. Nothing. I spoke to 2 separate people from the bank while calling from Australia and both said that based on the details I gave, including previous addresses etc I owed the bank nothing. In fact there was no record what so ever of my debt.

One of the folk I spoke to recommended I set-up an account with the likes of credit expert to monitor my credit rating, and so I did.

A few weeks ago a record showed up attached to the bank in question, saying the account was 'settled'.

Now I've checked it and it's been passed on to a debt collection agency and my rating has plummeted.

Any advice pertaining to my attempts to contact the bank and settle the account, and now it showing up in the hands of a debt collector. Have I grounds to waive any excess that may be added on, admin fees , interest etc?

I've not yet contact any of them over in the UK regarding this until I get advice.

My thanks

Thrugelmir

kc7020 wrote: »

Any advice pertaining to my attempts to contact the bank and settle the account, and now it showing up in the hands of a debt collector. Have I grounds to waive any excess that may be added on, admin fees , interest etc?

Why? Your behaviour leaves little room for complaint against others.

I left the UK 2 years ago and migrated to Australia. Prior to going away I took out a 1000 pound overdraft and used that to live for 3 weeks before flying out.

You would have been logged on the Gone Away Information Network (GAIN). The bank would have sold on the debt. Now you've resurfaced. The new owner of the debt may well seek recovery.

Now you've resurfaced. The owner of the debt will no

thebritishbloke

You'll have no grounds to get anything waived.

Did you tell them you were going to Australia? If you didn't, I can understand why they defaulted you when they couldn't get hold of you to pay off your overdraft.

Take it as a lesson, pay off the debt collectors and wait for it to drop off.

I didn't think Australian/UK credit reports were cross-referenced...

National_Debtline

thebritishbloke wrote: »

I didn't think Australian/UK credit reports were cross-referenced...

That is my understanding too. Credit reports are specific to the country they are issued in.

OP - is the credit report you have referred to your UK version as opposed to your Australian one?

Regards

Dennis
@natdebtline

kc7020

Thrugelmir wrote: »

Why? Your behaviour leaves little room for complaint against others.



You would have been logged on the Gone Away Information Network (GAIN). The bank would have sold on the debt. Now you've resurfaced. The new owner of the debt may well seek recovery.

Now you've resurfaced. The owner of the debt will no

Thank you for your responses.

I haven't just resurfaced. I contacted the bank back in May 2013, 8 months after I'd left the UK. I also opened up an account with creditexpert in the same month. Now, 1 year and 4 months after I'd contacted the bank looking to pay off the debt, my report has finally shown that I do indeed owe money.

I left the UK and headed to Australia to travel. Lived and explored remote parts of Australia. I did indeed lose track of the debt. Once back in civilisation I contacted the bank to discuss the debt.

My question was on the basis that I made the attempt to contact the bank and was told on 2 separate occasions by 2 separate people from the bank that the account/card did not exist and that they had no record of it what-so-ever. How could I pay off debt which by all accounts did not exist. I didn't try and run and hide. I took ownership, made the contact and attempts to pay it off, but could not do so because I was told it did not exist on their database.

In retrospect I should have notified them of my travels, this seems to be my only downfall here.

The credit report is based on my UK bank accounts, and addresses. Not my Australian details. I have had no official correspondence with the UK to which I can link the sudden appearance of the debt.

forgotmyname

But when you contacted the bank they had no debt in your name because they sold it on after having no contact from you.

You took from out of the account on the overdraft then took 8 months to contact them? It was probably sold on in that time.

I would have expected longer but maybe they were told you moved abroad and wanted shut of it ASAP.

kc7020

Thank you for your response forgotmyname.

Under the circumstances it's not unreasonable, in my opinion, that it took an extended period of time to contact the bank. A side from that would the bank still not have held a record in spite of it being sold on? I did ask them at the time if it had been passed on to a debt collection agency. Also, why did it then take a year and 4 months (more than likely longer) for it to then surfaced under the ownership of a debt collection agency?

bengal-stripe

kc7020 wrote: »

Under the circumstances it's not unreasonable, in my opinion, that it took an extended period of time to contact the bank.

In your opinion it might not be unreasonable, in most other people's opinion it is. (Nowhere in Australia is so remote that there are no telephones or postboxes available, maybe several miles apart.)

Particular as you have pulled the same stunt with an overdraft and a Credit Card:

http://forums.moneysavingexpert.com/showpost.php?p=61597285&postcount=1

Tixy

Any advice pertaining to my attempts to contact the bank and settle the account, and now it showing up in the hands of a debt collector.

Likely the debt collector will now write to you. Best to keep all contact in writing rather than phone them.

If you are in a position to pay off in one go then you may well find that they would be open to accepting a reduced amount in full & final settlement of the account.

There is advice and a template letter to make such an offer here - https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Default.aspx

Also, why did it then take a year and 4 months (more than likely longer) for it to then surfaced under the ownership of a debt collection agency?

Debts taking some time to appear on your file is not uncommon for someone who has been out of the country or off radar. Likely the debt collection agency has just located your current address and so have added the entry.

A few weeks ago a record showed up attached to the bank in question, saying the account was 'settled'.

This is also quite common when a debt is passed to a debt collection agency.
Does the bank entry still remain on your file? now the DCA have added their entry it should either be removed or should be marked as having been assigned to a debt collector.

Thrugelmir

kc7020 wrote: »

Under the circumstances it's not unreasonable, in my opinion, that it took an extended period of time to contact the bank.

Doesn't matter what you think. As it's not the way the world works. You abused the account facility and clearly demonstrated to the bank that you weren't someone to be trusted. So there's no right of appeal. You just have to accept the consequences of your actions.