Can I get a £4 default removed?

Clairb1973

We have recently applied for a mortgage and got declined, after checking Experian it turns out I have a default on my file.

I ordered some items from Very they wasn't any good so I returned them, I assumed that all the account had been cleared, 2 months later I got a letter saying I had a balance on the account and to pay asap, the balance was a £3.95 delivery charge that wasn't refunded, I paid it straight away.

This is now affecting everything we apply for, I asked Very if they would remove it but they point blankly refused!

It seems ridiculous that £3.95 can stop us getting a mortgage, is there anyway I get get it removed?

DevCoder

not if its an accurate picture of your credit record Im afraid.

Although I don't think a £4 default would be the deciding factor in a mortgage declination.

Clairb1973

We asked the mortgage company why it had been declined and they told us it was due to a default on my credit file, this is the only one.

fermi

Complain to Very saying that it was unreasonable for them to apply a default for such a small amount, and more importantly that they should have given you warning and a chance to pay this to avoid the default, instead of just applying it regardless.

A default under ICO guidilines and DPA should be only be placed by a company to show that the relationship between them and the customer has "broken down", and this cannot fairly said to be the case where they made no effort to inform you that anything remained owed, or any warning.

Tell them that unless they remove the default, you will be taking the complaint to the Financial Ombudsman and reporting their conduct to the Information Commissioner.

Warn them that this is causing you be turned down for mortgages/credit, and that you may be asking the FOS to take account of this when they consider any redress.

Probably worth contacting the FOS now, as they will often write a letter on your behalf at this stage. Even at this early stage where they can't take the complaint on formally yet.

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

Ben8282

I agree with all that has been said in the above reply.
Reading your post and assuming that 'the company' who wrote to you was Very, all you should have is 2 late payment markers for a very small amount of money, not a default.
It seems very odd to me that the account should have been defaulted under such circumstances without them ever even sending you a statement showing an outstanding balance for you to pay.
Presumably the default is now marked as settled.
Perhaps you could add a notice of correction to your credit report stating something like 'Amount due to cover postage and packing disputed due to postage and packing costs query. Paid in full when query resolved.'
Although I am on your side in this, I would like to add that this situation could have been easily avoided if you had paid a little more attention to your Very account. Were you not aware that this delivery charge was non-refundable if you returned the goods?

GingerBob_3

Ben8282 wrote: »

I agree with all that has been said in the above reply.
Reading your post and assuming that 'the company' who wrote to you was Very, all you should have is 2 late payment markers for a very small amount of money, not a default.
It seems very odd to me that the account should have been defaulted under such circumstances without them ever even sending you a statement showing an outstanding balance for you to pay.
Presumably the default is now marked as settled.
Perhaps you could add a notice of correction to your credit report stating something like 'Amount due to cover postage and packing disputed due to postage and packing costs query. Paid in full when query resolved.'
Although I am on your side in this, I would like to add that this situation could have been easily avoided if you had paid a little more attention to your Very account. Were you not aware that this delivery charge was non-refundable if you returned the goods?

I have lost count of the number of cases reported here of people having this particular problem with Very, and similar ones. There is obviously some underlying issue with the way Very conduct their business. They are best avoided.


And this is yet another example of how rogue companies like Very have the ability to trash someone's credit worthiness as a result of trivial issues. This harks back - again - to the dysfunctional credit reporting industry.

GingerBob_3

krisdorey wrote: »

not if its an accurate picture of your credit record Im afraid.

Although I don't think a £4 default would be the deciding factor in a mortgage declination.

The only thing this is an accurate reflection of is the underhand business practices of Very. It does not in any way provide a picture of someone's "credit record". In fact, it distorts it. Time and again people with exemplary credit worthiness are being shafted big time by this sort of issue. It's about time some legislation was brought in to prevent it.

mp3duck

Very offer "interest free for x months" but when you buy something, the delivery cost is not included in the interest free period, and they don't make this particularly clear (or didn't last time I ordered from them).

I had a statement not arrive one month, which meant this went unpaid, and resulted in a late payment marker on my file. I got the "charge" refunded, but not the marker removed.

IIRC, they didn't used to offer a direct debit payment method, (for minimum due amount), which meant they could collect their "late payment" fees from people "forgetting" to pay.

[Deleted User]

Have you checked all three versions of your credit files to check there's not another default being reported elsewhere? It seems odd that one £4 default would halt a mortgage application.

Rrushi_Shqiptar

I have seen so many complaints regarding Very, see their adverts on TV. Obviously the returns policy is dubious and to be honest best ignored, time to warn people about these people I feel.

Thrugelmir

Clairb1973 wrote: »

We asked the mortgage company why it had been declined and they told us it was due to a default on my credit file, this is the only one.

Lenders never disclose the real reason. For the simple reason it's more than likely a combination of factors and it's the (programmed) computer that says no.