Credit file advice - completely at a loss

robcyb

Hi all :wave:,

My first post here - so please be kind .

I recently consulted my credit report with ClearScore (hats off to MSE e-mail for that!) and found a discrepancy in reporting on my credit card being £950 over the limit in May of this year :eek:.

In May of this year I had to take a bank loan and the agreement with the bank was to downgrade my credit limit on my credit card (mutual agreement) and pay off the balance in full. As such, the clerk paid off the credit card and instantly reduced the credit limit. Herein lied the issue. The clerk should have waited a full 3 working days for the balance to clear (Nil balance) before reducing the limit.

Having contacted the bank in question - they advised that there was an "administrative error" on their part and as such they should not have reduced the credit limit instantly. The investigation with the bank has been open for 21 days today and so far they have admitted fault and have contacted credit reference agencies to issue a notice of correction.

Since then I have now received a letter from my other credit card provider informing me that they are increasing the APR on that card by a whopping 5%. It does not appear to be a mere coincidence that this black mark against my file has spurred this.

What are my rights as a customer? Is there anything I can/should be doing? I feel somewhat at a loss as the bank has admitted fault, and I am worried about the impact this can have on my future financial/credit worthiness.

The bank has advised there is no ETA and this investigation is complicated and could take 'some time'. I will definitely by checking my credit file more frequently going forward!

Thanks in advance for all your help!

fermi

Complain to the bank saying that they have 8 weeks to deal with it from your initial complaint, and make proposals as to how they are to compensate you for the consequences on your other borrowing of their mistake. Make it clear that if not resolved to your satisfaction in that time limit, then you will be taking it to the FOS.

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

robcyb

Hi Fermi - thanks for this advice. Letter in the post today (1st class recorded) detailing the above.

Aquamania

robcyb wrote: »

Hi all :wave:,

My first post here - so please be kind .

I recently consulted my credit report with ClearScore (hats off to MSE e-mail for that!) and found a discrepancy in reporting on my credit card being £950 over the limit in May of this year :eek:.

In May of this year I had to take a bank loan and the agreement with the bank was to downgrade my credit limit on my credit card (mutual agreement) and pay off the balance in full. As such, the clerk paid off the credit card and instantly reduced the credit limit. Herein lied the issue. The clerk should have waited a full 3 working days for the balance to clear (Nil balance) before reducing the limit.

Having contacted the bank in question - they advised that there was an "administrative error" on their part and as such they should not have reduced the credit limit instantly. The investigation with the bank has been open for 21 days today and so far they have admitted fault and have contacted credit reference agencies to issue a notice of correction.

Since then I have now received a letter from my other credit card provider informing me that they are increasing the APR on that card by a whopping 5%. It does not appear to be a mere coincidence that this black mark against my file has spurred this.

What are my rights as a customer? Is there anything I can/should be doing? I feel somewhat at a loss as the bank has admitted fault, and I am worried about the impact this can have on my future financial/credit worthiness.

The bank has advised there is no ETA and this investigation is complicated and could take 'some time'. I will definitely by checking my credit file more frequently going forward!

Thanks in advance for all your help!

This MSE article may be useful to you as an apparent victim of rate jacking
http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increases

A couple of particular points that should be of interest:

1. If you ask, you should receive an explanation of exactly why you've been rate-jacked.
(and indications are that if they simply say it's because of your credit score, you shouldn't take it without a fight)
2. You have 60 days in which to reject the rate rise (but you can't then make any more borrowing on the card). You should continue to repay at least in line with your historical pattern.