Unfair credit hit with no right to appeal - can I do anything, or should I have known

hesketh7085

Hi all,

I'm in my late 20s and in the process of buying my first house with my wife. We are very moneywise and have saved our deposit, live within our means etc.

I've had a credit card with Halifax for 6 years which I only use for petrol in order to help build my credit file, which I checked for the first time a few weeks ago and it was in tip-top shape.

However, I've become a cropper last week with some overdue payments which I do not believe are my fault and the bank has told me that my credit file will be affected, and as there has been no "banking error" an application to put a note on my credit file explaining the circumstances would be rejected. I feel incredibly hard-done to and want to know if there is anything I can do, or is this just one of those things that I should have known? The circumstances...

In March 2016 my mobile phone died and I went to buy a new one out-right. I didn't have the money to hand, but would have it in 2 months’ time when my credit card would debit that month's purchases.

I made 2 payments on the credit card of around £500 each but both times I had instant buyer's remorse after researching where I'd bought the phone from and requested a refund. I got this, but it took a few weeks to come through. In the time that I was waiting for the refund however, my statement came through.

The statement contained all the payments made on that account for March, including the 2 refunded purchases. My statements are usually £95 a month for petrol, but this was about £1200 when factoring in the two mobile phone purchases, which, again, had been refunded.

As my credit card debits my account automatically, and I've never been in this kind of situation, I assumed that despite the erroneous statement, the correct amount would have been debited last week. I checked last night and it turns out that it tried to debit the whole, pre-refunded amount. As a result, I incurred interest, a late payment charge, and a bounced debit charge. Similarly, my statement for next month has been issued and contains interest charges and a debit amount to start making repayments.

So, I rang Halifax first thing this morning to explain what had happened. The woman said she had refunded the interest, late payment and returned debit charges as a "good will gesture" because she could see nothing like this had happened in the last 6 months (or in the history of the account, to be blunt). I was advised to make an early payment to clear the balance of my account and she waived the interest "owed" on this too. I'm happy that the amount I was asked to pay equals the purchased I've made last month and this month so far. In effect, I've cleared my balance early and will now next be debited in 2 months’ time for the purchases I make from this day onwards.

However, we're applying for a mortgage and our credit scores are immaculate. I asked if this would affect it and she said my file will show a "late payment" and "returned payment" note which would affect it, but to what extent she did not know. This could not be reversed as there "had been no banking error", similarly when I asked if I could submit a request to add a note on my file she said her manager had said that would be rejected on the basis that "there had been no banking error".

Surely it is a banking error to debit the amount on an outdated statement, when the reality is that I owe nothing near that much AND the account clearly shows I was refunded prior to that debit being requested?

The sore point here is I had way more than enough to pay the erroneous debits in other accounts, but I thought common sense would have prevailed and I needn't have worried. Now I'm worried that my brilliant credit score is going to take a nose-dive at a crucial point in my life, and remain as such through furniture purchases for the next 6 years.

Can I right this "wrong", or should I have somehow known this?

Thanks.

[Deleted User]

All seems correct to me.

The statement would have advised the amount to be collected based on the balance at the time, which wouldn't take into account any refunds which may or may not come through on a future date. I think you're saying that the refunds hadn't yet appeared on your statement?

Neither would it factor in any other transactions after the statement is produced.

On the plus side, one late payment shouldn't be the end of the world, although your timing could perhaps have been better.

fermi

Seems like you may not have much luck, but if you wish to complain then make a formal complain to the bank about the error. Tell them that you will be taking the matter to the FOS if they reject your complaint to remove adverse markers.

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

You can certainly ask the CRAs to add a notice of correction that is factually accurate. You do that via the CRAs, not via the bank.

NOCs though, are of little use to be honest.

molerat

Different credit cards vary how they handle this situation. What does your statement say will be done re refunds ? In your situation I would have ensured there were funds available to cover the eventuality of them taking the full amount.

hesketh7085

Thanks for the very hasty replies everyone.

I've just been running through my statements with my mother and I think the overarching theme is that the bank are in the right, one isolated black mark shouldn't hit me that bad, there is no recourse I can seek as I "should have known" that what was printed on the statement is what would have been taken, and I'm just going to have to consider this as a very long learning experience.

This will sting me every time I check my credit score for the next 6 years, but at least I know I'll never let it happen again now that I understand how it works.

Brooker_Dave

Nation of slaves being held back by blacklists and greedy banks...

fusionx212

hesketh7085 wrote: »

Thanks for the very hasty replies everyone.

I've just been running through my statements with my mother and I think the overarching theme is that the bank are in the right, one isolated black mark shouldn't hit me that bad, there is no recourse I can seek as I "should have known" that what was printed on the statement is what would have been taken, and I'm just going to have to consider this as a very long learning experience.

This will sting me every time I check my credit score for the next 6 years, but at least I know I'll never let it happen again now that I understand how it works.

i'd challenge this with the bank and raise a complaint with the credit reference agencies.

they can place a note on your account which states you are challenging the information and this entry should not be used when considering you for credit.

just call experian and equifax and request this. they will investigate usually 2-3 weeks but may buy you some time.