Barclays added default to my credit file in error

kempstar

Hello

Around 6 weeks ago, I called Barclays as I wanted to change the account my direct debit came out of. I called them, they sent me a DD mandate form. I completed this and sent it back to them.

A couple of days later, I checked my TSB account, and the direct debit to Woolwich was in my list of direct debits.

Today I received a letter from Barclays saying my account is in arrears. I double-checked my TSB account, and the direct debit to Woolwich is still there, but it has not been taken by Barclays.

Barclays are claiming that they have never received anything, I explained that this is impossible because the direct debit has been set up in my account. I escalated this to a formal complaint, and they said a manager will call me by Tuesday.

I checked my credit file and it has already been registered as a default. I am really worried about this as the work I do means I apply for mortgages quite regularly, so this will cause a huge issue for me.

How do I go about sorting this out as quickly as possible? Barclays refused to accept a screenshot of my online banking which clearly shows that the DD was set up, and it was just Barclays who did not take it.

I will worry about compensation afterwards, but for now I just need my credit file cleansed.

SLZ

kempstar wrote: »

I am really worried about this as the work I do means I apply for mortgages quite regularly, so this will cause a huge issue for me.

Wait, you apply for mortgages in your own name on a regular basis? How does that in itself not affect you?

fermi

Make it a formal complaint, emphasise the detriment a false default will have on you, and tell them that you will be taking the matter to the FOS and claiming redress unless they remove it PDQ.

kempstar

SLZ wrote: »

Wait, you apply for mortgages in your own name on a regular basis? How does that in itself not affect you?

I work in property, so I am often applying for mortgages.

kempstar

fermi wrote: »

Make it a formal complaint, emphasise the detriment a false default will have on you, and tell them that you will be taking the matter to the FOS and claiming redress unless they remove it PDQ.

Thanks. I am going to ring TSB first to get some proof from them that the DD was set up. I have a screenshot from my online banking, perhaps I can send that in with the complaint.

I need to get this letter written and sent today I think.

fermi

Sometimes the FOS will write on your behalf, even at this early stage where you can't actually submit it as a formal one to them yet.

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

If you’d like us to contact them for you, just get in touch.

Lenders might jump to it a bit quicker when in receipt of a letter/call from them.

GingerBob_3

Yet another example of errors and mistakes (irrespective of fault) having a detrimental effect on one's ability to obtain credit. That is not what CRA reporting should be about. Until this lamentable situation is sorted out by legislation and proper regulation, this will continue to happen.

Thrugelmir

kempstar wrote: »

Today I received a letter from Barclays saying my account is in arrears. I double-checked my TSB account, and the direct debit to Woolwich is still there, but it has not been taken by Barclays.

Did you not make your normal monthly payment by another means?

kempstar

I spoke to TSB yesterday, and they confirmed that Barclays sent them the direct debit details electronically back at the start of March. It was registered, but not activated. TSB stated that lots of information was missing from the direct debit.

I have also submitted a complaint online with Barclays. This is hugely frustrating for me. We were just about to go through the process of remortgaging our residential property, and also looking at making offers on another investment property. Both of these will need to go on hold for now.

I also have this horrible feeling that this will take months to sort out, with both banks trying to blame each other and not bothering to speak with each other.

Thrugelmir - When I spoke to Barclays, I paid the mortgage payment that had been missed by debit card. I also paid next months in advance as no doubt this mess wont be sorted by then!

kempstar

Barclays called me today to say they had "investigated" my complaint. The person I spoke to just kept repeating that they had not received a direct debit mandate from me. When I asked her how it was possible for TSB to set up a direct debit to Woolwich without Woolwich asking them to, she said she didnt know.

I asked her if she had look at the screenshot from my online banking (they had eventually agreed to let me email this in) clearly showing the direct debit set up. She said she had but she couldnt explain it. She also said I would need to contact TSB and get written proof that it was Barclays error and not theirs. I said that they havent investigated the complaint properly if they havent bothered to contact TSB. She just kept repeating it was not their policy to do so, and it was up to me to do that.

I absolutely KNEW this would happen. What are my options now? When I spoke to TSB on the phone, they said they wouldnt provide a letter confirming the information they gave me on the phone as it was not their policy. I really dont want to be chasing them now, why should I? Why should I have to do all the leg work when it is Barclays error?

Would it be best to just go straight to the FOS? Although I am worried they might not even bother to contact TSB either.

fermi

Tell them that you require a final response letter from them as you

- Will be taking the matter to the FOS since TSB has clearly failed to investigate your complaint properly.

- Wish to make an additional formal complaint to their management regarding the failure of the lower level complaint handlers to investigate and respond properly to your complaint.