Debt partially settled 5 years ago but showing as default on file.

dark-knight_4

I had a direct debit for £30 go from my nationwide account in June 2010. I had phoned to cancel it before it went off and also cancelled it with the company requesting it. A while later instead of cancelling it, nationwide allowed it to go through. Charges racked up on the account and before the account was closed they stood at £251.

I refused to pay this and contested them. After an investigation they agree they were at fault and removed all charges and in return I paid the initial £30 to them. I asked them before I paid to have this reflected on my credit file and have the default removed.

I checked my file last night, 5 years later, and the default is still there. They have been adding a default mark each month with an outstanding balance of £221.

I called them today and queried this and they said the info on my credit file should say partially settled with no outstanding balance. I told them this is not the case. I also mentioned that they said they would remove any record of the default, which of course they denied having any record of agreeing to.

It has been passed to the complaints department to investigate which should take 5 working days.

What can I do?

If they agree that it should say partially settled and they change it, what about all the default marks for all the months over they last 5 years? Can I get them to remove them?

They told me 5 years ago that they would remove the default at that time. They deny this. What can I do to get them to honour this?

Thank you.

smdabs

Whilst Nationwide would have actioned your request to cancel, they do make it clear to cancel with the company also. Even once a Direct debit is cancelled, the third party can still attempt to take it from your bank account - something that Nationwide have no control over.

It would seem that they refunded the 'snowball charges' on the basis that responsible lenders agree that a charge should not cause another charge or 'snowball' a group of charges. (and the FCA agree with this approach)

This, however, is not Nationwide admitting that the initial error is their fault. They have removed the snowball charges and may well have removed those defaults from your credit file but the initial missed payment/charge (as you state was agreed) is to be paid by yourself and the initial default would still be on your credit file (for 6 years).

A bank cannot amend your credit file unless it is specifically a bank error.

dark-knight_4

But as I said in the last post, the default is still being applied each month for £221.

It's not showing as being settled.

And as I say in the last post, I cancelled the DD with both the company and nationwide.

What I didn't say was that nationwide agreed they were at fault because the DD was showing on my account as a string of zeros (00000000) which they said indicated a computer glitch. Hence the wiping of charges and the removal (supposedly) of default.

dark-knight_4

Got some good news.

Checked my Equifax file and it's showing as account closed but with an outstanding balance of £221. Call credit was showing as account still open.

Called the recovery department back to pass this info on to them. The man I spoke to this time did a much more thorough search and could see where they agree to update my file 5 years ago and could see that it didn't happen correctly.

He said Experian is showing the same as Callcredit, account still open with outstanding balance with defaults each month.

He apologised for this said he would make notes about what he's seen so the complaints department could fix it. He also said they will compensate me for having my file incorrectly showing defaults and outstanding balances for 5 years but that the compensation would not be financial. What else could the compensation be?

He said he cannot do anything himself now as the woman I spoke to earlier handed the case over to the complaints department and it was no longer under the recovery departments control. He apologised for her not doing a deep enough investigate and passing it over too quickly.

Good result so far.

Is there the possibility of financial compensation if they have been reporting incorrect defaults and outstanding balances on my account for 5 years?

smdabs

'I refused to pay this and contested them. After an investigation they agree they were at fault and removed all charges and in return I paid the initial £30 to them. I asked them before I paid to have this reflected on my credit file and have the default removed.'

- While they have admitted fault for letting the charges snowball....the fact you still had to pay the initial £30.00 therefore suggests that nationwide is not saying that the initial error was their fault otherwise they would have refunded everything.

The fact they have wiped the charges and yet it is still showing a monthly default seems slightly strange as that would suggests you are currently still missing the payments and the DD has not been cancelled...how can a default be reported if there are no charges/direct debits in place? One default is one default and would show on your credit history of the time it happened, not that it is a recurring charge.

I would talk to your CRA about that.

And i understand that you cancelled the Direct Debit with both parties however what i am trying to say is that regardless if you cancel it with the bank, if the other company failed to cancel it properly themselves - then it would still be debited - the bank have no control over that.

However, if you cancelled it with the company and not the bank - the payment would not be taken.


Having worked in their charge complaints department, the string of zeros (which would also usually show up on your internet banking) suggests the direct debit is cancelled, not a computer glitch - however, who knows... things may have changed since i was there.

dark-knight_4

Those guys in Nationwide work fast!!!

Got a call from the complaints department just now and she did not confirm that they agreed to remove the default in 2010 or that it was their fault.

But... She said that the default was not issued correctly, they did not give me enough time to respond to the default notice before applying it so she has to remove it. Will be done in 48hrs but give it 6 weeks.

She offered me £150 + £25 for having an incorrect default against my name for 5 years. Told her it wasn't good enough amount for being wrongly defaulted for 5 years so the amount is being contested. Will get a decision in 7 days.

How much is enough for being incorrectly defaulted for 5 years? How should I apply for more compensation?

I have never had a loan or credit card in my life. For the last 5 years I could never get credit. I don't even have a current account as I never qualified for one. Only have a basic cash card. All because of this default I never knew existed.

dark-knight_4

As of today the default has been removed from my Equifax credit file. I assume also the Callcredit and Experian as I asked her to make sure they were also notified. Can not believe how quick they sorted this when they knew they were in the wrong.

I have refused their £175 compensation for this incorrect default.

What do youse think is an amount of compensation reflective of the trouble of having a false default on your files for 5 years?

dark-knight_4

Nationwide have offered me a final amount of £225 compensation. Is this a fair amount?

The say in the letter that's it's because the default was placed by mistake with callcredit. No mention that it had also been placed with Equifax and Experian and also showed an outstanding balance of £221 for 5 years.

Should I accept it?

Thanks.

nidO

dark-knight wrote: »

What do youse think is an amount of compensation reflective of the trouble of having a false default on your files for 5 years?

The amount that is fair is the amount of money you've lost / had to pay extra as a result of this default being on your record for the past 5 years, such as provably higher interest payments on loans as a result of your credit history appearing worse than it is when taking out the loan

If this amount is zero, then the amount of compo that is "fair" is also zero, and their £175 is a great deal.
If this amount is more than zero, work it out.

smdabs

Agree with the above - if this hasnt negatively impacted you apart from the inconvenience of having to make a complaint - i would take their offer and run.

If it has affected your borrowing over the last 5 years with higher interest rates etc, provide proof and ask for that amount.

dmliverpool

Accept it and move on. I doubt there is a big payout due etc. Although anyone would plug for more.