Missed payments, complaint and credit file

Strummer22

Hi,

In early September the direct debit to pay off my Post Office credit card was returned. I've never had a problem with a DD before and so I didn't go over my accounts with a fine tooth comb making sure all DDs went out properly. So I didn't know until I got my September statement, which showed the returned payment and a late payment fee, and arrived at the same time as a DD guarantee.

I called PO to find out what was happening, and was told this was just a DD issue. Getting an explanation was like getting blood from a stone, but eventually I was told the DD was probably returned because my current account provider may have been doing some maintenance when the payment was requested and the request didn't get through.

They said the DD guarantee had been sent to me because they had set up the DD again, that the late payment fee would be removed and the DD would take care of the full amount the following month. I decided to wait for that and gain interest on the balance in my current account in the meantime.

Well, in October I only looked a couple of days after the DD date and realised that it hadn't gone out again. The DD that had been set up again the previous month was NOT in time to take the payment. Luckily the agent in my first call had noted that they advised me the DD would work, so PO admitted it was their mistake, removed the second late payment fee, and assured me that in November the DD would definitely work (which it did). However, two days later I got a letter telling me that because I was in arrears my credit limit would be reduced and my card unusable until payment received. I launched a formal complaint which is now about a week away from the 8 week limit they say they expect to resolve all complaints in.

When I complained, I only requested that they put my credit limit back as it was. But of course, now my credit file shows 2 months of missed payments. Is it at all possible they'll be on the ball enough to remove the missed payment notes from my file, or should I call them to update my complaint to make that request? Please note that although PO have admitted their mistake to me, I don't have proof of it (they do, in their call notes, but those might mysteriously go missing :huh:)

solentsusie

It is your responsibility to ensure that at least the minimum payment is made on your credit card each month.

From reading the post above, which is rather complicated to follow, I am not sure you have even done this for both months?

" They said the DD guarantee had been sent to me because they had set up the DD again, that the late payment fee would be removed and the DD would take care of the full amount the following month. I decided to wait for that and gain interest on the balance in my current account in the meantime. "

Just because there is an error with your direct debit payment, does not negate you from ensuring your minimum payments are made. There are other ways to pay than just direct debit as I am sure you must be aware. As you state above you did not make the minimum payment but held the money in your bank account. You would therefore fall into arrears.

If it is accurate that you have missed two payments they are under no obligation to remove this from your credit file. The direct debit may have failed, but you may have also failed to make your contracted minimum payments.

Strummer22

The first month was missed because the DD failed and it was too late by the time I was alerted. If what you say is correct, any credit file note for that event should be rescinded because I did not have the opportunity to pay on time.

I was assured that my direct debit would pay the account off before the next statement date, and I asked the question in a very clear way (can I leave the direct debit to take care of this? Answer: yes), and not told on the phone that this was unacceptable and they needed payment straight away, if this then resulted in a second arrears note that is attributable to me, I think they failed in their duty of care to inform me of that.

I phoned several times, including after my credit limit was reduced, and at no point was I told it was because I should have made a minimum payment rather than let the direct debit make the payment.

Thrugelmir

Stu_N_ wrote: »

The first month was missed because the DD failed and it was too late by the time I was alerted.

If there was insufficient funds in your bank account to meet a Direct Debit. Then there's only one person responsible. Learn from the experience and move on.

Strummer22

Read my original message. The DD did not fail because of insufficient funds, indeed my current account has an overdraft facility that I rarely use but would have covered me in the event that I had insufficient funds.

GingerBob_3

Thrugelmir wrote: »

If there was insufficient funds in your bank account to meet a Direct Debit. Then there's only one person responsible. Learn from the experience and move on.

According to the OP, this was not the reason for the DD failure.

Strummer22

I am rather encouraged to find this:

http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=17086

"POL (Post Office Ltd) says that it submitted the mandate more than a year earlier. However, because the direct debit had been dormant for 13 months, Mr L’s bank blocked the payments for April 2012 and subsequent months. POL also says that it has refunded the fees and charges applied to Mr L’s account, and has amended his credit file to remove the late payment marks it had recorded."

I have a near identical complaint, albeit with the credit limit issue too. POL are still processing my complaint, but have already refunded my late fees. I would be very satisfied if I received the response Mr. L did and would certainly not feel the need to escalate the complaint to the ombudsman.

Nasqueron

The 8 week limit by the way, while possibly a PO internal policy, is more likely to be the limit they have to respond to the complaint or resolve it before you can choose to escalate to the FOS (which will mean a long queue) - check their wording as it might just be referring to your right of escalation

Strummer22

Nasqueron wrote: »

The 8 week limit by the way, while possibly a PO internal policy, is more likely to be the limit they have to respond to the complaint or resolve it before you can choose to escalate to the FOS (which will mean a long queue) - check their wording as it might just be referring to your right of escalation

Yes it's both actually - their 8 week policy is due to the financial industry's 8 week limit for dealing with complaints.

I phoned them today and actually got a every helpful customer service rep who said that yes, it needed to be dealt with this week and she'll assign it to herself to get it sorted. She said they will reinstate my credit limit and remove the late payment marks from my credit file, to put me back as I would have been had the direct debit worked in the first place.

I just hope the letter the send says exactly that :rotfl:

Strummer22

Stu_N_ wrote: »

I just hope the letter the send says exactly that :rotfl:

Alrighty. My complaint with the Post Office/Bank of Ireland is officially resolved. To give closure to this thread, they responded saying:

- My Direct Debit had lapsed as it hadn't been taken for 13 months.
- They admitted that I shouldn't be expected to keep track of such things and said they should have told me that it lapsed. As such they said I was not at fault for the missed payments.
- They noted they'd already removed the late payment fees.
- They have restored my credit limit
- They have removed all adverse information from my credit reports
- They offered me £50 in compensation for my trouble, which I've accepted.

Once this was escalated to a complaint, although they took all of their 8 week timeframe, I've been very satisfied with their customer care.

GingerBob_3

By shear tenacity and much wasting of your time you managed to get yourself off the CRA blacklists. I would say £50 doesn't go anywhere near the compensation that should be forthcoming in such cases; they got away lightly. I strongly suspect that for every case like yours there'll be maybe 10 where the victim knows nothing about what's happened until they apply for a mortgage or other form of credit, only to find that they have been blacklisted.