First Direct, close account or let it heal?

Positively

I have had a headache with First Direct and now have a few months worth of reported missed payments (returned direct debits, although I have always paid the corresponding companies on time which my credit file reflects), and confusion over a discrepancy between overdraft limit and available balance. Anyway, we live and learn, I have accepted my mistakes, First Direct won't admit to theirs, ho hum.

So my otherwise immaculate credit file has a bunch of orange 1s and 2s and is only rated as fair and I now can't get a 0% BT.

My question is, should I
A) continue to use the First Direct account now my situation has improved and show it as now being well managed, will the Orange bits fall off after 6 years (I have another settled account which shows history from 2007?)
Close the account to show as settled with 5 months of missed payments prior to closure?

TIA, I appreciate any input anyone can offer!

stclair

The orange markers become less important as time goes by.

solentsusie

I would personally leave it open so that it starts to show improvement before I made any decision about closing the account, whether you still choose to use this as your main account is up to you if you are unhappy with them. That way at least it looks like you resolved the problem and moved forward rather than leaving on a sour note.

Yes, the late payments will fall off after six years and the more time goes by the less they will matter.

Good luck.

Positively

That's really useful, thank you both it's not my main account, just direct debit/household bills account. Word of warning, if you have a First Direct overdraft, your available balance may be more than your overdraft limit resulting in default/delinquent balances being notified on your credit file, I'm sure I can't be the only one to get caught out

g6jns_2

Positively wrote: »

I have had a headache with First Direct and now have a few months worth of reported missed payments (returned direct debits, although I have always paid the corresponding companies on time which my credit file reflects), and confusion over a discrepancy between overdraft limit and available balance. Anyway, we live and learn, I have accepted my mistakes, First Direct won't admit to theirs, ho hum.

So my otherwise immaculate credit file has a bunch of orange 1s and 2s and is only rated as fair and I now can't get a 0% BT.

My question is, should I
A) continue to use the First Direct account now my situation has improved and show it as now being well managed, will the Orange bits fall off after 6 years (I have another settled account which shows history from 2007?)
Close the account to show as settled with 5 months of missed payments prior to closure?

TIA, I appreciate any input anyone can offer!

I have to say I am surprised to hear this. I have been a FD customer since few weeks after they opened. For some while I had two other bank accounts but closed them and it is now only one. In nearly twenty years I have never had a problem. They consistently get good ratings from independent people like Which.

stclair

g6jns wrote: »

I have to say I am surprised to hear this. I have been a FD customer since few weeks after they opened. For some while I had two other bank accounts but closed them and it is now only one. In nearly twenty years I have never had a problem. They consistently get good ratings from independent people like Which.

first direct have recorded bounced/returned direct debits.

This thread provides more information:

https://forums.moneysavingexpert.com/discussion/5163915

Positively

The direct debits were my mistakes, the discrepancy between overdraft limit and available balance is theirs, I have never known another bank to give you an available balance and then report the use of that as a default/delinquent balance. Called them to discuss last week and the woman said I am not the only one to have complained about this issue. Doesn't matter now, nothing I can do so just have to live with it and wait for time to heal.

FWIW, I am happy to be sticking with them, I love that a Human answers the phone when you call and you don't have all the automated stuff, I love the regular text updates, the interest free overdraft. Everyone I have spoken to has been great, it's not the individuals fault, so yes, I think their customer service is amazing!! And once this issue has time to heal I think it will all be fine.

stclair

Positively wrote: »

The direct debits were my mistakes, the discrepancy between overdraft limit and available balance is theirs, I have never known another bank to give you an available balance and then report the use of that as a default/delinquent balance. Called them to discuss last week and the woman said I am not the only one to have complained about this issue. Doesn't matter now, nothing I can do so just have to live with it and wait for time to heal.

FWIW, I am happy to be sticking with them, I love that a Human answers the phone when you call and you don't have all the automated stuff, I love the regular text updates, the interest free overdraft. Everyone I have spoken to has been great, it's not the individuals fault, so yes, I think their customer service is amazing!! And once this issue has time to heal I think it will all be fine.

It does appear in this manner on Equifax? Is that the credit reference agency your making reference to?

Positively

stclair wrote: »

It does appear in this manner on Equifax?

I'm not sure what you mean? The available balance on my overdraft is £257, last month I went to £256 and this was reported on Equifax as a default/delinquent balance and says I am in arrears. Apparently my overdraft limit is still £250. I asked them to reduce the available balance to £250 but this can't be done. So if I check my balance at a cash machine I have to make sure to take £7 off the reported available balance to get a true available balance.

Confused, I am!!